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{
    "id": 1526688,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1526688/?format=api",
    "text_counter": 160,
    "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": "to the National Assembly. The Ministry has forwarded further amendments to the National Assembly for consideration in order to address the current challenges facing the industry and enhance the competitiveness of the subsector. Mr. Temporary Speaker, Sir, export earnings from tea have increased from Kshs136.5 billion in 2021 to Kshs180.57 billion in 2023 and Kshs181.69 billion in 2024. The number of export markets have increased from 82 in 2022 to 97 in 2024. This has been attributed to the enhanced market expansion activities including trade missions and promotions undertaken in Russia, Iran, Saudi Arabia, United Arab Emirates (UAE), China, Hong Kong, Egypt, Pakistan, Kazakhstan, Germany, Canada, the United States of America (USA) and Ghana. Exports of value-added tea have also increased from 20.3 million kilogrammes in 2022 to 28.89 million kilogrammes in 2024. The value-added teas have increased from Kshs3.5 billion in 2021 to Kshs20.08 billion in 2024. This achievement is attributed to the various government incentives such as the removal of Value Added Tax (VAT) on tea purchase directory from the factory for export and tax exemptions on imported inputs of tea export operating under the special processing zones. Mr. Temporary Speaker, Sir, in terms of enhancing diversification into orthodox and specialty teas; the production of high specialty teas has increased from 3.7 million kilogrammes in 2023 to 7.2 million kilogrammes in 2024 through licensing of orthodox processing capacity and specialty tea manufacturers. Thirty-four cottage factories processing orthodox tea have been established by 2024. It is envisaged that production of orthodox and specialty teas will increase annually to over 60 million kilogrammes in the next three years and over 100 million kilogrammes in the next six years. The Government has also provided capacity building to the factories on manufacture of orthodox and specialty teas in accordance with the product requirements of the markets. As a result, earnings per kilogramme is expected to increase with over 85 per cent from the current average of $2.7 to approximately $5. Specialty teas fetch high prices compared to Black Crush, Tear and Curl (CTC) teas. Diversification into orthodox tea manufacturing is also expected to reduce the volume of Black CTC teas being supplied into the world market. In terms of cushioning the tea farmers against rising costs of inputs such as high cost of fertilizer; the Government has for the last two years subsidized some 194,000 metric tons of fertilizer distributed to farmers at a price of Kshs2,500 per bag from the Kshs3,500 per bag. That is a cost reduction of 40 per cent. Due to accessibility of subsidized fertilizers coupled with the good weather conditions, tea production for the year 2024 surpassed the 2023 production by 28.21 million kilogrammes a growth of about 4.95 per cent, to stand at 598.47 million kilogrammes against 570.26 million kilogrammes for the year 2023. It is also significantly higher compared to the 535.04 million kilogrammes of 2022. Mr. Temporary Speaker, Sir, the Government is committed to the following- (1) Undertake periodic monitoring of the implementation of management agreements by the tea factories and the management agent. 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."
}