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New Rules By Kenyan Government at KTDA to Protect Tea Farmers from Stubborn Cartels

New Directives have been issued by the Ministry of Agriculture Cabinet Secretary, Peter Munya as reprieve to Tea Farmers in Kenya.

Amongst the new raft measures include a restructuring in the Kenya Tea Development Agency (KTDA) in a bid to cushion the farmers and also weed out cartels in the Tea industry.

They include, all teas produced in Kenya for the export market shall be sold exclusively through the auction process. Henceforth, sale by private treat commonly known as Direct Sales Overseas is outlawed.

All registered tea auction organizers shall establish an electronic trading platform for tea auction. This will create an audit trail and remove the opaqueness in the current trades.

All tea buyers shall pay in full for all teas they win at the auction before they take custody and lift the tea for export.

All registered tea brokers shall offer brokerage services to a maximum of fifteen (15) factories.

All monies from the sale of tea at the auction shall be remitted directly to the Tea Factory Accounts within fourteen (14) days from the auction date.

All Factories shall within thirty (30) days from receipt of proceeds from sale of tea pay tea growers at least 50% of payment for green leaf delivered every month.

The balance due to tea growers shall be paid by the factories within the financial or calendar year as shall be agreed with the farmers as Bonus.

Any management agency agreement between KTDA and a factory shall be for a tenure not exceeding 5 years. The remuneration for any management service shall not exceed two percent 2% of the value of tea sold per year.

Company secretary services shall be excluded from the services offered by management service providers and each Factory shall either recruit in-house company secretaries or outsource the service.

The regulations will also seek to operationalize a stabilization fund to cushion farmers from price volatility, to find ways to improve value addition of Kenyan tea, oversee how Kenyan tea is marketed, among other possibilities.

Content created and supplied by: WinnieK (via Opera News )

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