The Ministry of Agriculture has announced that it will not dissolve the Kenya Tea Development Agency (KTDA) despite complaints from tea farmers over the agency's weak management.
The clarification comes after tea farmers voiced their concerns over the price disparities between the East and West Rift Tea Blocks, questionable expenditures, excessive sitting allowances, and weak internal controls of the agency.
In a statement on Thursday, October 9, Agriculture Principal Secretary Kipronoh Ronoh said that instead of disbanding the agency, which he labelled as "not a solution", the ministry will reinforce its oversight on the agency's financial management and restructure its governance structure to restore farmers' trust.
"Beyond these macroeconomic factors, the Ministry acknowledges the urgent need to address governance, accountability, and transparency challenges within KTDA," the PS stated.
"Let it be clear: disbandment of KTDA is not the solution. What is required is a comprehensive restructuring of its governance and operational framework. Stricter oversight of directors’ expenditures, firm limits on allowances and meetings, stronger internal controls, and full financial accountability will be enforced to restore farmer trust," he added.
Addressing the recently declared final green leaf payments for the 2024/25 financial year by KTDA factories, Ronoh attributed the low payments to a number of factors, including the appreciation of the Kenyan shilling against the dollar and the decline of global tea prices.
Additionally, the PS said that the disposal of carry-over stocks at lower prices following the removal of the reserve price has all contributed to the reduced earnings, especially to farmers of the West Rift Region.
Ronoh further clarified that the difference in bonus level between the East and West Rift Regions was because of the difference in tea quality in the two regions and the cost of production.
To address challenges faced by farmers in the country, the ministry has said that it is in the process of implementing several strategies, including the modernisation of tea factories, the establishment and a Tea Quality Analysis Laboratory in Mombasa to ensure tea quality.
Furthermore, the ministry has said that it is in the process of removing VAT on tea and packaging materials to promote value addition and local tea packaging.
"I hereby emphasize that only sustainable, long-term reforms will safeguard the livelihoods of smallholder tea farmers, noting that tea sustains over 10 million Kenyans," Ronoh stated.
The announcement comes a day after the agency said that farmers will receive their final payment by Wednesday, October 15, 2025, following the conclusion of the 2024–25 financial year.
In a statement on October 8, the agency confirmed that farmers will receive the payments directly in their bank accounts, along with the proceeds from green leaf deliveries made in September 2025.
