The tea sector is once again at the center of controversy following new directive by Agriculture Principal Secretary Dr. Kiprono Rono to call for a comprehensive audit of all loans obtained by tea factories under the Kenya Tea Development Authority (KTDA).
The move has sparked a heated debate among tea factory directors, particularly from the Mt. Kenya region, who claim the directive is politically motivated.
During a meeting held in Murang’a that brought together directors from tea factories east of the Rift Valley, spanning counties such as Kiambu, Murang’a, Nyeri, Kirinyaga, Embu, and Meru, the directors expressed mixed reactions to the directive.
While they maintained that they had nothing to hide and were ready for any audit, they insisted that the factories should not be forced to shoulder the costs of the exercise.
Led by Gatundu South Member of Parliament GG Kagombe, the directors argued that the recent changes in currency values have had a direct impact on this year’s reduced tea bonuses.
They reassured farmers that measures are already being taken to stabilize the situation and improve earnings in the coming years.
Kagombe further noted that global market fluctuations and rising operational costs have also contributed to the decline in farmer payments.
The directors, however, took issue with the Principal Secretary, accusing him of introducing unnecessary political interference in the management of the tea sector. They alleged that Dr. Rono’s directives could destabilize the Kenya Tea Development Authority, which they say has been instrumental in sustaining smallholder tea farming for decades.
They urged the Ministry of Agriculture to focus instead on addressing the high levies and taxes that continue to weigh down tea producers. According to the directors, these levies have greatly eroded farmers’ profits and made it difficult for factories to operate efficiently, warning that failure to act could cripple one of the country’s most vital export sectors.
The standoff comes just a day after PS Rono announced that the Tea Board of Kenya will conduct a detailed audit of loans obtained by 71 KTDA managed factories across the country.
KTDA is expected to assess how the loans were utilized and whether they met the intended objectives. As the debate continues, tea farmers are left waiting anxiously, hoping that the ongoing wrangles will not disrupt the stability of the tea industry that millions depend on for their livelihood.
