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KTDA loosens factories grip amid reforms push
Farmers pick tea leaves in Nyeri County.
Photo credit: File | Nation Media Group
What you need to know:
- The decision comes at a time when the Ministry of Agriculture has enacted new regulations that give more independence to the factories that are owned by KTDA Holding.
- Under the regulations factories will also be required to file their annual statistical returns with the Tea directorate at the ministry.
- number of factories have already started declaring their second payment to farmers with the process expected to have been completed last week allowing farmers to get their earnings from October 22.
- Tea brokers, buyers and the auction organiser will ensure that the proceeds from the sale of tea are remitted to the tea factory accounts within fourteen days from the date of the sale, less the agreed commissions
Kenya Tea Development Agency (KTDA) will this year let each factory announce their earnings, a departure from the previous tradition where the agency announced a cumulative figure for all the entities.
The move, the Daily Nation has learned, is aimed at making the 69 factories more independent of their parent company.
