The Nairobi Coffee Exchange and other private auctions will be licensed to auction Kenyan tea in the next month if the Mombasa tea auction does not establish an electronic trading platform.
Agriculture Cabinet Secretary Peter Munya says, this and the election of directors for tea factory limited companies slated for March this year is part of the first phase of implementing the new tea act.
The CS said the Mombasa Tea Auction must comply with the requirements of the new Tea Act 2020 which include efficiency, transparency and accountability. An election committee comprising of officials from agriculture and food authority, agriculture County Chief Executives, factory managers and county commissioners will oversee the elections.
Director elections is the first step in the creation of the Tea Board that will comprise four tea directors, a member from the large scale private tea estates, tea traders representatives and a chair who will be appointed by the president.
In a bid to shore up value addition in the tea sector the government says modalities are being explored to zero rate VAT on tea sales at the auction.
This as tea zones in the country are set to be reduced from the current 6 to 3 in what the CS say will create efficiency in the management of the small scale farmers tea factories.
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