Tea farmers now uproot crop due to poor returns, corrupt officials

Small-scale tea farmers are set to earn more after revenue for the year 2015-2016 rose by a third on higher production and stable Kenyan shilling.

Over 250,000 small-scale tea farmers in Mt Kenya region will in the next few days receive their bonuses.

Tea traders at the Mombasa auction told the Standard that Value Added Tax (VAT) was the main reason investors are not keen to venture into packaging or processing of the popular beverage.

Unilever Tea Company has been stopped from firing employees who participated in the recent strike that rocked the multinational firm.

The tea sector in Kenya has in the recent past faced numerous challenges. In 2014, the prices of tea hit an all-time low because of poor demand for the commodity on the international market.

Multi-national tea companies in the South Rift have been criticised following a wave of labour unrests in the tea growing region.

Tea prices have dropped to a 10-month low, compounding troubles in the sector currently hurting from industrial action.

Kenya Tea Development Agency (KTDA) will import 74,800 metric tonnes of fertiliser.

Kenyan tea farming is being weighed down by rising labour costs that could discourage investments and hurt the economy, the Kenya Tea Growers Association (KTGA) said on Wednesday.

Gatunguru Tea Factory has up to next week (June 30), to comply with regulations set out by the licensing body, Agriculture Fisheries and Food Authority (AFFA).

The amount will be backdated to January 2014, the date the parties began negotiations for the Collective Bargaining Agreement (CBA).

There is also growing concern that the crop may face serious challenges in the global market owing to management of the value chain.