Gachagua challanges new KTDA directors to birth new ideas to revamp the tea Sub-sector

Mombasa,

Thursday, 5 September, 2024

McCreadie Andias 

Deputy president Rigathi Gachagua has challanged the new KTDA board of Directors to enforce reforms that will revamp the tea Sub-sector and generate more income to tea farmers.

Speaking on Thursday morning at the closure of the induction workshop for the newly re-elected KTDA factory Directors in Mombasa, Gachagua adressed prioritisation of reforms in the entire value chain approach - from production, processing, marketing, value addition and institutional, policy and legal reforms. 

"An impact on the Tea Sub-sector in Kenya has a direct impact on the economy of our country." Gachagua said. 

Gachagua noted the above as avenue of wastage by KTDA directors which in turn lays a huge burden to the tea farmer. 

He called for Prudenct expenditure and financial management by KTDA and Kenya Tea board, who are the custodians of money for tea farmers. 

He urged the new directors to practice Disciplined, reliable accountable and trustworthy financial management. 

legal fees, car hire,first class local and foreign travel and investment in loss making subsidiaries were identified as areas of wastage. 

Gachagua wondered how KTDA with a fully fledged legal department with monthly renumerated lawyers, would still out source exhobitant lawyers from legal firms in setting it's legal disputes. He ordered KTDA to either scrap it's legal department or stop out sourcing lawyers. 

He called out KTDA for investing in loss making subsidiaries like real estate while the loss is absorbed by the farmers. He warned that the Government will come in on this and conduct a forensic audit to ensure only viable subsidiary remain. 

According to the DP, KTDA directors have spend 44m in both local and foreign travel between January and June, money that will be deducted from the farmer. 

"I plead with you as you settle down to work. Let's make efforts of reducing expenses for the directors so that the farmer can get his right." Gachagua noted. 

"We must have agree and have a candid conversation about the cost of production per KG of tea leaves and the only way to put money in the farmers pocket is to look for better market, better prices but the most doable which is in your hands is to bring down the cost of production. "He added. 

Meanwhile, Gachagua noted that quality production of tea must be enforced all the way from production, picking, transportation and processing from farm to cap the quality while standards must be observed. 

Tea brokers were identified to pose a threat on the tea market and quality especially in Western Kenya. The DP ordered a crackdown on these third party operators by immediately revoking their licenses. 

KTDA was urged to conduct soil testing to identify suitable fertilizers for tea farming in different tea regions im the country. 

However,Gachagua revealed that the tea Sub-sector is still faced by a huge historical challenge of tea stockpile in warehouses due to discrepancies in exports. He vowed to visit warehouses to settle the matter. 

On his part, Cabinet Secretary for Agriculture and Livestock Development Dr. Andrew Karanja highlighted key priorities to be undertaken by the government in collaboration with KTDA and TBK to revamp the sector. 

Karanja noted that Tea is an important sector in the Government’s Bottom-Up Economic Transformation Agenda. 

He noted that the government has committed to Increase earnings of small holder farmers from Ksh. 59 per kg of green tea leaves to Ksh.90 by 2027. 

The government has also committed to Increase the volume of value added tea and tea exports from the current 20 million kgs to 235 million kgs to add tea value. 

Furthermore, The government has prioritized to increase the foreign exchange earnings from ksh.180 billion to Ksh. 360 billion by 2027. 

The Tea Subsector Reforms discussion is a national discourse, which the Ruto Administration . 

The the newly elected directors of the KTDA have been challenged to diligently undertake the great ahead in order to accomplish significant milestones that will boost the efforts of over 800,000 small-holder Tea farmers in the country.