Tea poaching: Why KTDA wants private factories audited

 

Nyansiongo Tea Factory Director Monica Orwochi plucks tea at her Ribwago farm,Borabu in Nyamira County on May 6, 2024. [Sammy Omingo, Standard]

The Kenya Tea Development Agency (KTDA) is calling for the immediate audit of all licensed privately-owned tea factories in the West of Rift to ensure full compliance with the Tea Act and protect farmers from exploitation. 

KTDA directors from the West of Rift have alleged that most of the 71 private licensed companies do not comply with the requisite standards and have resorted to poaching tea from KTDA factories.

Speaking during a forum held in Kisumu yesterday, KTDA vice chairman Omweno Ombasa said this means most KTDA factories are not operating optimally due to a lack of green tea for processing, even as overhead costs remain high.

READ: PS Rono orders audit of loans obtained by tea factories

Ombasa cited an example whereby a factory designed to process 25 tonnes of leaf per day but now receives only 10 tonnes, resulting in lower profits and weaker bonuses for farmers. 

He urged farmers to remain loyal to their factories and continue delivering their tea through the structured KTDA system.

The meeting, which was held a week after another one held in Murang'a by KTDA directors from the East Rift, also addressed the issue of allowances paid out to directors.

The chairman of Chebut and Kaptum tea factories, Robert Kipkemboi, claimed that politicians are setting farmers against the directors by claiming that they earn up to Sh50,000 in allowances per sitting. 

He said the directors earn only Sh18,000 per sitting, with a maximum of only four sittings annually.

“We are just poor people. We understand the plight of our farmers, and we also follow the laid-down regulations. It is unrealistic to say that we have made up to Sh500 million in allowances,” said Kipkemboi.

His sentiments were echoed by Ombasa, who termed the allegations insensitive and baseless.

Farmers from the western Rift received lower bonuses as compared to their eastern counterparts, with the issue of quality of tea being cited as one of the reasons for the low incomes.

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The factory directors, at the same time, urged the Mombasa-based East African Tea Trade Association to adopt a "blind" approach in the tasting of tea for grading, whereby samples do not bear factory names, but are given codes to ensure fairness.

They also welcomed the proposed audit of factories, saying they have nothing to hide.

However, the officials insisted the cost of such audits should not be borne by farmers but by those pushing for them.

They said KTDA is in the process of phasing out inter-factory borrowing, with the reconciliation of previously borrowed funds ongoing, paving the way for individual factories to access bank loans at an interest rate of six per cent.

This, the officials said, would enhance financial independence and strengthen stability across the tea sector.