Tea factories threaten to ditch KTDA agency after stalemate

A worker at the Iriani tea factory in Othaya, Nyeri. [Kibata Kihu, Standard]

However, KTDA chairperson defended the Management Services, saying it has over 60 years of experience and that it is the one that has grown the factories' infrastructure leading to the construction of 71 factories.

"KTDA MS has requested time to study the reviewed management agreement, which is the purpose of the negotiations. Our work is to observe the activity and ensure that there will be no unfair practice and that all that they will agree will help our farmers," he said.

He said KTDA MS has led to the creation of new markets. "So far we have an agreement with over 40 tea factories and we have a few remaining in Mt Kenya regions such as Nyeri, Kiambu, Murang'a, and Meru regions."

Murang'a tea factories have also invited other management agencies in their meetings in bid to compare their offers with KTDA MS in a bid to get the best deal. They are meeting the directors yesterday and today.

Failure by the farmers' representatives and the KTDA MS to agree on the management agreement has seen the Tea Board of Kenya extend the submission of their agreements to May 16.

"Where the TBK is desirous that the process of negotiating the reviewed management agreements be concluded soon to pave the way for the implementation. It is also cognisant of the need for the parties to undertake the exercise objectively without undue pressure or interference," read part of the letter signed by Peris Mudida, TBK Acting Chief Executive Officer.

Other than KTDA MS, other licensed management agencies include Tropical, Eastern Produce Kenya and Williamson Tea.

But the three are known to manage tea estates while smallholder tea factories have their tea managed by KTDA MS, a subsidiary of KTDA Holdings Ltd owned by farmers.

TBK member Charles Kirigwi said factories were within their legal rights to contract private management agencies, adding that the law also allows them to look for their market directly without involving a management agency.

"Section 34 (1) of the Tea Act 2020 deliberately uses the word 'may' while allowing a person who intends to manufacture or deal in tea to engage a management agent this therefore means that they can do it on their own," he said.