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KENYA – The Kenya Tea Development Agency (KTDA) has denied allegations that it is holding 200 million kilograms of expired unsold tea.
In a statement, KTDA dismissed the reports, which originated from Williamson Tea Kenya’s financial disclosures and were subsequently reported in certain media outlets, as inaccurate.
“KTDA dispels claims of unsold teas in its stocks as purported by Williamson Tea Kenya PLC in its financial disclosures and as reported in sections of the media. The said stocks cannot be destroyed since no such stocks exist as alleged,” the statement read.
The agency emphasized that any tea in their warehouses represents the diligent efforts of farmers and is maintained to the highest standards unless deemed unfit for consumption.
KTDA reiterated that it does not hold any expired teas and adheres to stringent quality control measures throughout its value chain.
Williamson Tea, in its financial disclosure, had called on KTDA to destroy the “expired” tea it was holding, citing market saturation.
The Nairobi Securities Exchange-listed company noted that the industry has seen scaled-down prices due to the enormous supplies of the beverage.
Meanwhile, tea-producing countries have proposed new regulations akin to those used to dictate oil prices in response to declining tea prices. Leading producers from Africa, including Kenya, and Asia attribute the price drop to overproduction and insist on production control to ensure better returns and maintain quality.
Participants proposed regulating tea production by limiting it to certain seasons or months of the year, similar to the approach of the Organisation of Petroleum Exporting Countries (OPEC) in regulating oil prices.
Meanwhile, during the release of the recently concluded tea factory election results, Kenya’s Agriculture Cabinet Secretary, Mithika Linturi, called on newly elected directors of smallholder factories to address inefficiencies in the processing and marketing of tea.
He expressed gratitude to the farmers for exercising their democratic right in the free, fair, and peaceful election of the directors.
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