Government suspends reserve price on teas

The Mountain Journal 

The government has suspended the reserve price on tea in a move to clear the old stocks of unsold produce lying in the warehouses.

In a meeting with the tea buyers and KTDA Holding leadership , the Agriculture Cabinet Secretary Dr Andrew Mwihia Karanja, his first business, suspended the reserve price on teas not sold for more than six months.

When he met the tea buyers, brokers and KTDA Holding leadership, the CS promised that the old stocks would be sold by the end of September.

There has been a hue and cry following the plying up of unsold teas in the warehouses, blamed on poor green leaf quality.

“ We have to deal with the unsold teas from the warehouses by the end of next month, thus the suspension of reserve price for the tea that has stayed for more than six months in the warehouses,” said the CS.

The meeting with the CS conceded with the KTDA board members and the senior managers attending an induction training following the elections in the regions.

Dr. Karanja’s tour focused on several strategic locations, including warehouses owned by KTDA Holdings in Miritini and Changamwe, as well as leased facilities in Mengo, Mombasa. These warehouses are integral to the supply chain, handling the storage and management of tea before it reaches the market.

The visit was timely and significant, given the substantial increase in tea production. Dr. Karanja’s inspection aimed to ensure that the storage conditions at the warehouses met the required standards to preserve the quality of tea. Proper storage is essential for maintaining the integrity of the tea, which is crucial for meeting market demands and sustaining the reputation of Kenyan tea.

During the visit, Dr. Karanja interacted with warehouse staff, providing an opportunity to address any concerns and discuss best practices in warehouse management. The engagement with the staff was an important aspect of the visit, reflecting the ministry’s commitment to fostering a collaborative environment where challenges can be addressed, and solutions can be implemented effectively.

The government’s support for the tea industry, through initiatives like the fertilizer subsidy and infrastructure oversight, plays a critical role in sustaining and enhancing Kenya’s position as a leading global tea producer.