Farmers want tea agency sued

A tea farmer in Gaturuturu village attends to her farm. Tea farmers in Mount Kenya region want the Kenya Tea Development Agency sued for allegedly exploiting them. PHOTO | JOSEPH KANYI |

What you need to know:

  • The farmers complain of double taxation by the tea agency as both their monthly payment and bonus are taxed.
  • In September, governors called for a reduction in the tax burden borne by tea farmers amid tumbling prices of the produce in international markets.
  • At the same time, the farmers renewed their appeal for an audit of land purchased by various tea factories managed by KTDA, citing corruption.

Farmers in Mount Kenya region want the Kenya Tea Development Agency sued for allegedly exploiting them.

The Kenya Union of Small-scale Tea Owners called on Kiambu, Murang’a, Nyeri and Kirinyaga counties to join them in filing a case in court.

“Our county governments in tea growing region should come together in aid of tea farmers. They should hire a lawyer on behalf of us and sue KTDA,” the lobby’s national vice-chairman, Mr Dismas Mbaria, told the Nation Monday.

The farmers complain of double taxation by the tea agency as both their monthly payment and bonus are taxed.

They said they want their counties to emulate Kericho County government, which two weeks ago filed a case in court seeking Sh87 billion as compensation for the over 400,000 small-scale tea “exploited” farmers.

REDUCE NUMBER OF LEVIES
In September, governors called for a reduction in the tax burden borne by tea farmers amid tumbling prices of the produce in international markets.

The agriculture committee of the Council of Governors called for a reduction in the number of levies farmers are charged to ensure that their businesses did not collapse when prices are low.

The governors were concerned by the 15 taxes tea farmers were charged.

Committee chairman Nderitu Gachagua said the levies were a burden to farmers, many of whom did not profit from the crop. The levies also affect the final products.

Mr Gachagua, who is Nyeri governor, said as governors they proposed that the taxes be distributed along the value chain so that a tea farmer was left with just one levy.
COMPETITIVE PRICES
At the same time, the farmers renewed their appeal for an audit of land purchased by various tea factories managed by KTDA, citing corruption.

They said an audit of the land was necessary to ascertain whether the prices were competitive.

The farmers said the anti-graft body should not ignore complaints raised by farmers and leaders regarding the mismanagement in the tea sector.