Agriculture and Livestock Development Cabinet Secretary Andrew Karanja has established a 21-member taskforce to investigate the causes of the growing accumulation of unsold tea in Kenya.
In a gazette notice, Karanja outlined the taskforce’s mission to examine the root causes and impacts of the crisis while proposing solutions that address the issue in the short, medium, and long term.
“It is notified for the general information of the public that the Cabinet Secretary for Agriculture and Livestock Development has appointed a Taskforce to investigate the underlying causes and impacts of accumulation of unsold tea and propose short, medium and long term solutions,” the gazette notice read.
The decision to form the taskforce comes amid reports of over 100 million kilograms of unsold tea stockpiled at the Mombasa Tea Auction.
The value of this surplus tea stands at nearly Sh32 billion, posing a significant challenge for Kenya, which is the second-largest exporter of black tea globally.
The current inventory far exceeds the international minimum stock requirement of 40 million kilograms, placing the country in a precarious position.
High production levels coupled with declining tea quality have been cited as major contributors to the problem. Kenya’s decision to suspend the $2.40 minimum reserve price for tea has further exacerbated the crisis.
The suspension has allowed traders to purchase tea at prices below two dollars per kilogram, diminishing the market value of Kenyan tea. Comparatively, Rwanda, whose tea fetches the highest price in the region at $4.02 per kilogram, has managed to maintain quality and value, highlighting a stark contrast in regional tea markets.
The newly formed taskforce will be chaired by Nicholas Munyi Kagua and will consist of 14 members, along with a secretariat of six.
Its scope of work includes regulatory oversight, policy evaluation, and the development of an action plan to address the tea crisis.
Among its mandates is the assessment of the impact of the minimum reserve price and associated payment delays, an evaluation of storage conditions for the stockpiled tea, and an investigation into price disparities between the East and West Rift regions.
The taskforce will also probe factors affecting sales at the Mombasa Tea Auction, which is a critical hub for the tea trade.
The team is expected to complete its work within 60 days and submit a detailed report to the Cabinet Secretary within 14 days after the conclusion of its term. The secretariat will be based at Kilimo House in Nairobi.
The formation of this taskforce aligns with the government’s broader commitment to revitalizing the tea sector.
Speaking at the recent Kenya Tea Summit in Mombasa, Deputy President Kithure Kindiki reaffirmed the administration’s dedication to ensuring that over 800,000 tea farmers benefit from their efforts. He emphasized the importance of addressing inefficiencies in the tea value chain and promised strategic interventions such as subsidized fertilizer to reduce production costs and enhance farmer returns.
Kenya produces approximately 600 million kilograms of tea annually, making it a key player in the global tea market. However, the current crisis threatens to undermine this position.
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