State cracks down on tea middlemen

 

The government has directed the Kenya Tea Board (KTB) to come up with a lasting solution to tea hawking through which middlemen exploit farmers. Photo/JARED NYATAYA  

By GERALD ANDAE

In Summary

• Agriculture secretary Felix Koskei noted that tea hawking was not only exploiting farmers but also compromised on the quality of tea that is processed.
• Normally, the two leaves and a bud rule has to be observed when picking tea.
• However, hawkers buy any quality that has been plucked to sell mainly to multinational companies given that Kenya Tea Development Agency (KTDA) factories does not buy leaves that do not conform to required standards.

The government has directed the Kenya Tea Board (KTB) to come up with a lasting solution to tea hawking through which middlemen exploit farmers.

Agriculture secretary Felix Koskei told the Business Daily that the sale of tea to unauthorised persons was also compromising the quality of tea.

“Farmers are being exploited by these middlemen who buy tea from them at a lower price then sell to the processing companies at a higher price,” said Mr Koskei.

He noted that tea hawking was not only exploiting farmers but also compromised on the quality of tea that is processed.

“It is very difficult to ascertain the level of hygiene and the picking process when the green leaf exchanges hands from farmers to hawkers,” noted Mr Koskei.

Normally, the two leaves and a bud rule has to be observed when picking tea.

However, hawkers buy any quality that has been plucked to sell mainly to multinational companies given that Kenya Tea Development Agency (KTDA) factories does not buy leaves that do not conform to required standards.

Noting that one of the factors that prompt farmers to hawk their tea might be the need for quick cash, the cabinet secretary pointed out that it was necessary the stakeholders come up with ways that will help in containing the trend, which includes none delay payments to farmers on their deliveries.

Hawkers buy the tea from farmers at Sh20 per kilogramme, paying promptly, while KTDA pays them Sh14 for the same quantity every end month.

However, farmers who hawk their produce miss out on second payment of Sh28 per kilogramme on all the quantity supplied at the end of the year.

Mr Koskei said that once the key causes of hawking are established, then the government will be in a position to enforce the Tea Act which was passed by Parliament last year.

The Act provides stiff penalties for hawking tea including a fine of up to Sh 1 million, two years in jail or both.

KTDA said enforcing the legislation would ensure adequate deliveries to tea factory companies.

“Enforcing the Tea Act will be an appropriate measure to save not only the tea factories but also to safeguard the interests of farmers who are being exploited by the middlemen,” said KTDA head of corporate affairs Charles Kimathi.

According to the Act, farmers should register and sign a green leaf supply agreement with the tea factory where they deliver green leaf. The Act further states that tea factories will not buy tea from persons not appearing in its register.