“We will enforce policies to protect processors from unfair trade,” says CS Kagwe

𝐏𝐚𝐫𝐥𝐢𝐚𝐦𝐞𝐧𝐭 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠𝐬
𝐖𝐞𝐝𝐧𝐞𝐬𝐝𝐚𝐲, 𝟏𝟐 𝐌𝐚𝐫𝐜𝐡 𝟐𝟎𝟐𝟓

Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has assured senators that the government is committed to protecting local processors from unfair trade practices, pledging to enforce policies that safeguard their interests and promote value addition.

Appearing before the Senate, Kagwe responded to concerns raised by Sen James Murango (Kirinyaga) and other lawmakers on issues affecting the tea and macadamia industries, including quality control, farmer payments and export policies.

𝐓𝐞𝐚 𝐬𝐞𝐜𝐭𝐨𝐫 𝐫𝐞𝐟𝐨𝐫𝐦𝐬 𝐚𝐧𝐝 𝐪𝐮𝐚𝐥𝐢𝐭𝐲 𝐜𝐨𝐧𝐭𝐫𝐨𝐥

On the longstanding issue of tea quality at the Mombasa auction, Kagwe clarified that blending occurs only after the tea is sold, based on market preferences. He assured senators that quality control measures are in place before auctioning, addressing fears over the mixing of different grades.

He also outlined key gains from tea sector reforms, including:

• Higher farmer payments – Monthly earnings for smallholder tea farmers have increased from Ksh16 to Ksh21 per kilogram in the East Rift and from Ksh16 to Ksh20 in the West Rift, reducing reliance on loans.

• Governance reforms – Smallholder farmers will elect factory directors in June and July through elections supervised by the Independent Electoral and Boundaries Commission (IEBC).

• Regulatory framework – Regulations under the Tea Act 2020 have been finalised following public participation.

• Boost in exports and revenue – Export earnings have risen from Ksh136.5 billion in 2021 to Ksh181.69 billion in 2024, with value-added tea exports increasing from 20.3 million kg in 2022 to 28.89 million kg in 2024.

𝐌𝐚𝐜𝐚𝐝𝐚𝐦𝐢𝐚 𝐞𝐱𝐩𝐨𝐫𝐭𝐬 𝐚𝐧𝐝 𝐥𝐨𝐜𝐚𝐥 𝐩𝐫𝐨𝐜𝐞𝐬𝐬𝐢𝐧𝐠

Kagwe reiterated that the government will not lift the ban on raw macadamia (in-shell) exports, citing Section 43 of the Agriculture and Food Authority (AFA) Act 2013. The restriction, he said, is designed to promote local processing, create jobs and boost foreign exchange earnings. The macadamia sector currently supports around 200,000 jobs.

To ensure farmers receive competitive prices, the government has introduced several strategies, including:

• Supporting farmer cooperatives to strengthen bargaining power.

• Facilitating contractual agreements between farmers, processors and exporters.

• Encouraging farmers to register under the Kenya Integrated Agricultural Management Information System (KIAMIS).

• Establishing a Macadamia Nuts Standing Committee to oversee fair pricing mechanisms.

𝐒𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧𝐢𝐧𝐠 𝐥𝐨𝐜𝐚𝐥 𝐩𝐫𝐨𝐜𝐞𝐬𝐬𝐢𝐧𝐠

The government is also working to build the capacity of local processors by enforcing policies that protect them from unfair practices, Kagwe said. Training programmes and market access facilitation are being developed, alongside a planned macadamia harvesting calendar to improve produce quality.

“We are committed to ensuring our local processors thrive by creating an enabling environment for them to compete fairly,” he told the Senate.