The newly appointed Cabinet Secretary for Agriculture and Livestock Development, Dr. Andrew Karanja, is in Mombasa today to engage with key tea stakeholders as he seeks solutions to Kenya’s ongoing tea crisis.
The visit to the Mombasa Tea Auction comes at a critical time, with over 100 million kilograms of tea, primarily from the west of the Rift Valley, remaining unsold due to a minimum price policy introduced in 2021.
This policy, initially designed to stabilize tea prices, has inadvertently discouraged international buyers, leading to significant stockpiles of unsold tea.
The situation has been exacerbated by excess production during the last financial year, contributing to a surplus that has yet to find a market.
As of August 2024, the unsold tea includes 100 million kilograms of fresh produce, along with an additional 20 million kilograms carried over from previous years. This crisis has had a severe impact on tea farmers, resulting in delayed payments and reduced incomes, making it challenging for them to purchase essential inputs like fertilizer and meet their basic needs.
Recognizing the urgency of the situation, the Government, through the Ministry of Agriculture, has pledged to implement reforms aimed at alleviating the crisis. These include a review of the minimum price policy and efforts to diversify markets, with the goal of making Kenyan tea more competitive on the global stage.
Dr. Karanja’s visit to the Mombasa Tea Auction is expected to provide a platform for dialogue with industry stakeholders, as they collectively explore strategies to revive the sector and secure better outcomes for farmers and the broader tea industry.