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{
    "id": 86560,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/86560/?format=api",
    "text_counter": 382,
    "type": "speech",
    "speaker_name": "Mr. Kosgey",
    "speaker_title": "The Minister for Industrialization",
    "speaker": {
        "id": 177,
        "legal_name": "Henry Kiprono Kosgey",
        "slug": "henry-kosgey"
    },
    "content": " Mr. Temporary Deputy Speaker, Sir, thank you for giving me this opportunity to second this Bill. I wish, therefore, to second the Tea (Amendment) Bill. At the moment, tea is a very important crop in Kenya. I wish, at the start, to congratulate Kenya Tea Development Agency (KTDA) which has just released results showing that this particular year, farmers are going to make – not record profits but – substantial amounts of money that can sustain their livelihoods. We have come a long way from the days when tea and coffee were reserved for what were then the colonial masters. You will also recall, if you are aware of the history of agriculture in this country, there was the Sunoton Plan that allowed Africans or indigenous Kenyans to grow coffee. Later on, they were allowed to grow tea. Ever since, after 1963, when the Kenya Tea Development Authority was formed - which we later made an agency - there has been tremendous progress in the tea sector. The returns to the farmers are encouraging. I am not suggesting that, at any one time, farmers are satisfied with the returns which currently, stand at about 80 per cent of the total earnings. I believe that KTDA could still improve and come up to even just 10 per cent and give the farmer 90 per cent. Nevertheless, this Bill seeks to amend certain sections of the Tea Act, Cap.343 of the Laws of Kenya. One area is to strengthen the Tea Board. The Tea Board serves as the regulatory and marketing agency with respect to tea in Kenya. There is one area which we wanted to see Tea Board being more active in marketing and promotion of tea in Kenya. It should not rely purely on traditional markets of UK, Pakistan, Sudan and Egypt. There are other areas where tea is consumed, particularly in Russia and East European countries. We should conduct tea promotions in all those areas. We need to cover a wider area. This Bill also seeks to strengthen the Tea Board by giving it more resources. At the moment, they have been relying on a cess which is about Kshs0.46 per kilogramme of tea or green leaf. By introducing an ad valorem duty on the sales means that the producer and the consumer will also pay. Maybe, Kenyans are not aware that Kenya imports tea. We import certain special types of tea like herbal or tea with additives for the taste of some people. They need to pay so that we can promote our tea. Mr. Temporary Deputy Speaker, Sir, at the moment, we sell our tea mainly through the Mombasa Auction. We need to strengthen the Mombasa Auction so that it becomes a very strong auction. We have heard that there are some people who wanted to introduce an auction in Dubai. We do not want that because it could kill our Mombasa Auction and transfer business elsewhere. So, the amendment to Clause 3 expands what the Tea Board can do. It should not just be a broker. Its functions should include auction organizer, transit tea and warehousing. So, they all need to be recognized. Mr. Temporary Deputy Speaker, Sir, one very important aspect that I need to touch on--- Because I am not going to touch on every aspect. There are other hon. Members who will make their contribution. I would like to talk about Clause 10, which seeks to amend Section 13(a) of the principal Act by providing the regulation of green leaf supply, and creates an offence for non-compliance of the same. This amendment is very important! The success of KTDA has been because the market is more or less regulated. It might look a bit awkward since it is my tea and I can sell it anywhere. If we allow that to happen, we will be treading on very dangerous grounds. We will go the way the coffee went. You will remember that in the 1980s and late 1970s, coffee brokers were allowed to buy coffee directly from the farmers and sell it to KPCU. So, even the people who did not have coffee were coffee suppliers. This particular Clause is very important. We should retain and maintain this Clause because if we do not do that--- At the moment, there are people who do not even have tea, but they supply it to the factories. We must guard against that. Otherwise, the farmer will be exploited. KTDA factories will start suffering. The big plantations will be receiving tea which they have not taken care of. That will kill the tea industry and encourage pirates. In Kericho and Nandi, there is a new variety called Mung’orito which is – I cannot translate it. But it is tea which is hawked around and it is, sometimes, of low quality. It is being sold. Somebody can just go and pluck tea, including other peoples’ tea at night and sell it as their own. So, we need this Clause. It is very important so that we can guard against malpractices in the market. Otherwise, this Bill seeks to revamp the Tea Board of Kenya. I am happy to hear that the number of directors will be reduced from a very large group of 15 to a manageable group of 11; this is in conformity with the State Corporations Act. With those few remarks, I beg to second and support this Bill."
}