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{
    "id": 1526687,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1526687/?format=api",
    "text_counter": 159,
    "type": "speech",
    "speaker_name": "Hon. Mutahi Kagwe",
    "speaker_title": "The Cabinet Secretary for Agriculture and Livestock Development",
    "speaker": {
        "id": 229,
        "legal_name": "Mutahi Kagwe",
        "slug": "mutahi-kagwe"
    },
    "content": "country; the overall objective of the tea reforms is to enhance the competitiveness of our tea industry in order to increase the returns of tea growers and other tea value chains. In this respect, we have increased monthly payments as a result of the reforms. Smallholder tea factories have increased the monthly payment of tea to tea farmers from Kshs16 to Kshs21 per kilo in the east of the rift and Kshs20 in the west of the rift. Smallholder tea farmers' earnings are gradually rising, which will reduce their overreliance on expensive loans from SACCOS and the proliferation of green leaf hawking to meet their socio-economic needs. In line with the reform agenda on payment to farmers at a rate of 50 per cent of the proceeds of sale on a monthly basis, total payments have increased from Kshs50 per kilogramme of green leaf in 2022 to Kshs59 in 2023 and Kshs64 in 2024. Total payments have also increased from Kshs34.7 per kilogramme of green leaf in 2021 to Kshs59 in 2023 and Kshs64 in 2024. This is, of course, with keeping up with the Government's efforts to transform. The total payment to smallholder tea farmers increased from Kshs44.1 billion in 2021 to Kshs67.7 billion in 2023 and Kshs90.5 billion in 2024. In response to the issue of indicating good corporate governance practices, we have enhanced the participation of smallholder tea farmers in the management of tea factories. The farmers have elected their directors through elections conducted by the Independent Electoral and Boundaries Commission (IEBC) and oversighted by the Tea Board of Kenya in June and July, 2024. Good corporate governance among smallholder tea factories has also improved. As part of the reform process, we have also reviewed factory management agreements. All smallholder tea factories signed new management agreements with the Kenya Tea Development Agency, Management Services Limited, and implementation began in July, 2024. The main objective of reviewing the management agreements was to remove skewed and exploitative clauses in the management agreements against smallholder tea factories and to reduce operational costs for smallholder tea factories by reducing the management agency fee, among other costs. The agreements provided for evaluating the management agent's performance prior to contract renewal, setting small tea factories' annual performance targets, and paying the cost of staff seconded by the factory, the management agent, and the agent. In terms of the development of tea regulations under the Tea Act 2020 and to operationalize it, regulations and guidelines have been finalized and subjected to public participation in line with the Constitution and Statutory Instructions Instruments Act. These regulations are the Tea Levy Regulations 2024, the Tea Registration and Licensing Regulations 2024, the Corporate Governance Guidelines and Code of Conduct for the tea sector, and guidelines on the quality of green leaves for processing by tea factories. After consulting with the counties and holding the National Validation Forum, the regulations will be forwarded to the relevant committees of the Senate and the National Assembly. Mr. Temporary Speaker, Sir, the Tea (Amendment) Bill (Senate Bills No.10 of 2023) was passed by the Senate on the 8th October, 2024 and is endorsed for presentation The electronic version of the Senate Hansard Report is for information purposes only.A certified version of this Report can be obtained from the Director, Hansard and Audio Services,Senate."
}