THE STANDARD By
Peter Kimanga |
January 29th 2021 at 00:00:00 GMT +0300
A tea farmer affiliated with Gathuthi Tea Factory delivers his produce at Ndugamano Tea Buying Collection Center. [Kibata Kihu, Standard]
Cabinet Secretary for Agriculture Peter Munya has said the government will zero-rate Value Added Tax on tea in order to boost value added exports as well as increase consumption of locally packed tea.
Though third in global tea production after China and India, Kenya leads in surplus tea exports to the world, sadly though, over 95 per cent of it is in bulk form.
This dismal value-addition is due to an unfavourable policy and tax regime, key being accessibility of tea by packers as they have to pay a refundable 16 per cent VAT upfront to access the tea, but which takes years to be refunded.
Will online auctions quell storms brewing in tea, coffee sectors?
Wednesday January 27 2021
Summary
For decades, Kenya’s main commodity markets have been running on a manual platform with the arrival of the final price shrouded in secrecy.
It was a practice that bred discontent among farmers who watched as their earnings dipped one crop season after another.
Some, feeling short-changed by the system, cut down their crops in protest, prompting the State to seek alternative platforms that would boost transparency in the commodities trade.
For decades, Kenya’s main commodity markets have been running on a manual platform with the arrival of the final price shrouded in secrecy. It was a practice that bred discontent among farmers who watched as their earnings dipped one crop season after another.
Rwandan tea outshines Kenyan
Monday December 21 2020
An auction at the Tea Trade Centre in Mombasa. The process will be automated to boost efficiency. PHOTO | FILE
By GERALD ANDAE
Summary
Marketing data from the Mombasa Tea Auction indicates Rwandan tea was sold at Sh272 a kilo in the auction held last week against Kenya’s Sh214 for the same quantity.
At the tail end was Tanzanian tea which fetched Sh133 per kilo.
Rwanda has been leading when it comes to the best tea, fetching a premium price compared with others because of the unique test that buyers are looking for.
Rwanda’s tea continues to fetch premium price at the weekly auction in Mombasa, overshadowing the earnings by Kenyan producers as international buyers focus on quality.
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