A parliamentary inquiry committee on tea pricing today started its public hearing to collect views from different stakeholders in Rift Valley.
The committee chaired by Tigania West MP Dr John Mutunga was formed following acrimony from farmers and leaders over this year’s disparities in bonus payment.
Yesterday, the committee was scheduled to visit seven factories to engage stakeholders over disparities in farmers’ bonuses between the regions in the east and west of the rift.
Some factories in the west of the rift received a bonus payment of Sh10 per kg of green leaf delivered for processing between July 1, 2024, and June 30 this year.
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The Mutunga committee will hold public hearings between November 18 and 26, while the report is expected to be tabled in parliament on December 2.
Among the factories to be visited for the inquiry is the Rukuriri factory in Embu that paid the highest bonus this year of Sh57.50 per kg.
Other factories in the west of the rift are Motigo, Tegat and Sanganyi, while in the east of the rift are Michimikuru (Meru), Gacharage (Murang’a) and Ndarugu (Kiambu).
Facilities that will be visited are the quality analysis and tea testing laboratory, the Tea Research Institute, and KTDA Warehousing, among others.
The inquiry will focus on four key objectives: to identify how tea pricing is determined, to investigate regional price disparities, to assess operational costs across factories, and to pinpoint institutional inefficiencies affecting farmers’ earnings.
Dr Mutunga added that the Committee will analyse the entire tea value chain, from pre-production to export, reviewing the roles of the Tea Board of Kenya (TBK) and the Kenya Tea Development Agency (KTDA).
“The probe aims to establish the factors contributing to the reduced payments and will involve officials from the Ministry of Agriculture, the Tea Board of Kenya, KTDA, EATTA, tea brokers, and marketers,” says Mutunga, also the chairman of the agriculture and livestock committee.
The exercise follows highly charged meetings between the KTDA directors from the east and west, respectively blaming each other for the bonus payment in their separate meetings.
KTDA Board Member for Embu, Mr Enos Njeru, said the inquiry team will be taken through systems on quality tea, reduced production cost, and others that lead to better bonus payment to understand how the value chain works.
“Production of quality teas is the ultimate goal towards achieving the best payment, thus satisfying the market,” said Njeru.
Ndima Tea Factory’s John Mithamo Wasusan said it was absurd that the Principal Secretary, Dr Kiprono Rono, has issued threats to the directors on the alleged misappropriation of resources.
“The directors are ready for the factory audit, as in the east the stakeholders concentrate on the production of quality tea to achieve better prices,” said Mithamo, also a zone five board member.
Other members in the inquiry committee are MPs Brighton Yegon (Konoin), Clive Gisario (Kitutu Masaba) and Benard Kitur (Nandi Hills).
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A parliamentary inquiry committee on tea pricing today started its public hearing to collect views from different stakeholders in Rift Valley.
The committee chaired by Tigania West MP Dr John Mutunga was formed following acrimony from farmers and leaders over this year’s disparities in bonus payment.
Yesterday, the committee was scheduled to visit seven factories to engage stakeholders over disparities in farmers’ bonuses between the regions in the east and west of the rift.
Some factories in the west of the rift received a bonus payment of Sh10 per kg of green leaf delivered for processing between July 1, 2024, and June 30 this year.
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The Mutunga committee will hold public hearings between November 18 and 26, while the report is expected to be tabled in parliament on December 2.
Among the factories to be visited for the inquiry is the Rukuriri factory in Embu that paid the highest bonus this year of Sh57.50 per kg.
Other factories in the west of the rift are Motigo, Tegat and Sanganyi, while in the east of the rift are Michimikuru (Meru), Gacharage (Murang’a) and Ndarugu (Kiambu).
Facilities that will be visited are the quality analysis and tea testing laboratory, the Tea Research Institute, and KTDA Warehousing, among others.
The inquiry will focus on four key objectives: to identify how tea pricing is determined, to investigate regional price disparities, to assess operational costs across factories, and to pinpoint institutional inefficiencies affecting farmers’ earnings.
Dr Mutunga added that the Committee will analyse the entire tea value chain, from pre-production to export, reviewing the roles of the Tea Board of Kenya (TBK) and the Kenya Tea Development Agency (KTDA).
“The probe aims to establish the factors contributing to the reduced payments and will involve officials from the Ministry of Agriculture, the Tea Board of Kenya, KTDA, EATTA, tea brokers, and marketers,” says Mutunga, also the chairman of the agriculture and livestock committee.
The exercise follows highly charged meetings between the KTDA directors from the east and west, respectively blaming each other for the bonus payment in their separate meetings.
KTDA Board Member for Embu, Mr Enos Njeru, said the inquiry team will be taken through systems on quality tea, reduced production cost, and others that lead to better bonus payment to understand how the value chain works.
“Production of quality teas is the ultimate goal towards achieving the best payment, thus satisfying the market,” said Njeru.
Ndima Tea Factory’s John Mithamo Wasusan said it was absurd that the Principal Secretary, Dr Kiprono Rono, has issued threats to the directors on the alleged misappropriation of resources.
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“The directors are ready for the factory audit, as in the east the stakeholders concentrate on the production of quality tea to achieve better prices,” said Mithamo, also a zone five board member.
Other members in the inquiry committee are MPs Brighton Yegon (Konoin), Clive Gisario (Kitutu Masaba) and Benard Kitur (Nandi Hills).
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By Boniface Gikandi