Report On Consideration Of The Tea (amendment) Bill (senate Bill No. 1 Of 2023)

THENATIONALASSEMBLY THIRTEENTHPARLIAMENT-FOURTH SESSION-2025

DIRECTORATE OF DEPARTMENTAL COMMITTEES DEPARTMENTAL COMMITTEE ON AGRICULTURE AND LIVESTOCK

REPORT ON:

THE TEA (AMENDMENT) BILL (SENATE BILL NO. I OF 2023)

AUGUST2025

CLERKSCHAMBERS DIRECTORATE OF DEPARTMENTAL COMMITTEES PARLIAMENTBUILDINGS NAIROBI

TABLEOFCONTENTS

| LIST OF ABBREVIATIONS AND ACRONYMS | | |---------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------| | LISTOFANNEXURES. | | | CHAIRPERSON'S FOREWORD | | | CHAPTERONE. | | | I.O PREFACE.. | | | 1.1Establishmentof the Committee. 1.2 Mandate of the Committee... 7 | | | 7 | | | 1.3 Committee Membership 1.4 CommitteeSecretariat. | | | 8 9 | | | CHAPTERTWO. | | | 2.0BACKGROUND OF THE TEA SECTORINKENYA 10 2.1 Introduction | | | 10 | | | 2.2 Merits of the Tea (Amendment) Bill, 2023 10 | | | 2.3Demerits of the Bill... | | | 2.4 Comparative Analysis ... 10 | | | CHAPTER THREE.. | | | 12 | | | 3.0 OVERVIEW OF THE TEA (AMENDMENT) BILL (SENATE BILL NO. I OF 2023)... 12 3.1 Introduction.. 3.2 Regulatory Frameworks... | | | 3.3PotentialImpactoftheBill 12 | | | 3.4 Clause byClauseProvisions of the Bill. 12 | | | 12 | | | 3.5 Gaps not Addressed by the Bill (as Raised by Stakeholders).. 13 | | | 14 | | | CHAPTERFOUR.. | | | 4.0 PUBLICPARTICIPATION/STAKEHOLDER CONSULTATION.. 16 4.1 The Kenya Tea Growers Association (KTGA) 4.2 Council of Governors (COG). 16 | | | 4.3 The Tea Board of Kenya... 16 | | | 4.4 Kenya Agricultural and Livestock Research Organisation (Tea Research Institute). 61 27 | | | 4.5 Kenya Tea Development Agency (KTDA)... | | | 4.6 East Africa Tea Trade Association (EATTA).. 33 | | | 49 CHAPTERFIVE. 54 | | | 5.0 COMMITTEE OBSERVATIONS.. .59 | | | CHAPTERSIX.. 59 | | | 6.0 COMMITTEE RECOMMENDATION. .60 | | | CHAPTERSEVEN. 60 | | | 61 | | | REFERENCES 61 | | | ..66 | | | | 7.0 SCHEDULE OFPROPOSED AMENDMENTS. |

Bill(SenateBill No.Iof 2023)

LISTOFABBREVIATIONSANDACRONYMS

AFA

Agriculture Food Authority

A&L

Agriculture&Livestock

Cap.

Chapter

CBA

Collective BargainingAgreement

CBS

Chiefof theBurningSpear

CECM

County Executive Committee Member

CEO

Chief Executive Officer

CoG

Council of Governors

CS

Cabinet Secretary

CTC

CrushTearand Curl

DDC

Directorate of Departmental Committees

Dr.

Doctor

EATTA

EastAfrica Tea Traders Association

EPZ

ExportProcessing Zone

GDP

GrossDomesticProduct

GOK

Government of Kenya

Hon.

Honourable

KALRO

KenyaAgriculture&LivestockResearchOrganization

KEPHIS

Kenya PlantHealth Inspectorate Service

KFS

Kenya ForestServices

KPAWU

KenyaPlantationandAgriculturalWorkers'Union

KTDA

Kenya Tea DevelopmentAuthority

KTGA

Kenya Tea Growers Association

LTD

Limited

MEMARTS

MemorandumandArticlesofAssociation

MOALD

MinistryofAgriculture&LivestockDevelopment

MP

Member of Parliament

NA

National Assembly

NOPEU

NationalOrdinaryPeopleEmpowermentUnion

NTZDC

Nyayo Tea Zone Development Corporation

ODM

Orange DemocraticMovement

PhD

Doctor ofPhilosophy

PS

Principal Secretary

SDA

State Department of Agriculture

SEZ

SpecialEconomicZone

TBK

Tea Board of Kenya

TRF

TeaResearchFoundation

TRI

Tea Research Institute

TRIEA

TeaResearchInstituteofEastAfrica

REF

Reference

UAE

United Arab Emirates

UDA

United DemocraticAlliance

UK

United Kingdom

LISTOFANNEXURES

• I.Adoption Schedule of the Report
• 2.Minutes

3. Copyof theNewspaperAdvertisement 5. A Copy of the Prevention of Tea (Amendment) Bill (Senate Bil No. I of 2023) 4. Copy of the Letter Inviting Stakeholders for the Meeting

• 6.Matrix of the Bill
• 7.Witness Attendance Register for the Stakeholder Engagement Meeting

CHAIRPERSON'SFOREWORD

This Report presents the proceedings of the Departmental Committee on Agriculture and Livestock on its consideration of the Tea (Amendment) Bill (Senate Bill No. I of 2023), which was published on 6th January, 2023. The Bill underwent its First Reading on 12th November, 2024 and was subsequently committed to the Departmental Committee on Agriculture and Livestock for consideration and

Comprising seventeen (17) clauses, the Bill seeks to amend specific provisions of the Tea Act (Cap. 343) to enhanceprotection of tea growers'proceeds frompotential mismanagement by factories.It alsoseeks to incentivize value addition by exempting value-added teas from the Tea Levy, and to liberalise the tea sector by providing legal provisions for the direct sale of tea in overseas markets, thereby creating broader market access for producers.

In accordance with Article Il8 (1) (b) of the Constitution and Standing Order I27(3), the Committee placed advertisements in the print media on 4thDecember, 2024 requesting for memoranda on the Bill from the public and relevant stakeholders.Further, through a letter referenced NA/DDC/A&L/2025/014 dated 3rd June, 2025, the Committee invited stakeholders to a public engagement session on Tuesday, I0"h June 2025. During this meeting, five (5) stakeholders made oral submissions before the Committee.

The tea sector remains a critical pillar of Kenya's economy, contributing approximately 24% of national foreign exchange earnings. It supports employment in rural areas and sustains the livelihoods of thousands of smalholder farmers. Additionally, the industry has made significant investments in rural economiesandlocalcommunitieswhereitsoperationsarebased.

• In its deliberations, the Committee considered the proposed amendments in light of an out-of-court settlement between the Tea Board of Kenya, the Kenya Tea Growers Association, and the East Africa TeaTradersAssociation.Thissettlement aimed toresolve contentious issuesraised in constitutional petitions challenging the implementation of several sections of the Tea Act, 2020. The withdrawal of these casesbyKTGA and EATTA wasbased on a mutual understanding that theproposed amendments would be reviewed byParliament.

While the Council of Governors expressed support for the overall intent of the Bill,it raised concerns about the Bill'sfailure to address the equitable sharingof tea levieswithtea-growingcounty governments, notingthatagricultureisafullydevolvedfunctionundertheFourthScheduleoftheConstitution.Most stakeholders expressed support for the Bill,citing the urgentneedfor reforms torevitalize the tea sector. They reaffirmed their commitment to constructive engagement on issues affecting the industry andteafarmers.

The Committee wishes to extend its sincere appreciation to the Offices of the Speaker and the Clerk of the National Assembly for the logistical and technical support extended throughout its sessions. We also acknowledge the valuable input from the Kenya Tea Growers Association, the Council of Governors, the Tea Board of Kenya, the Kenya Agricultural & Livestock Research Organization, the East Africa Tea Trade Association, and the Kenya Tea Development Agency. Lastly, I express my deep gratitude to the Honourable Members of the Committee and the Secretariat for their dedication and contributions to the development and production of this report.

On behalf of the Departmental Committee on Agriculture and Livestock, and pursuant to Standing Order 199(6), it is my privilege and honour to present to this House the Committee's Report on the Tea (Amendment) Bill (Senate Bill No.I of 2023).

The Committee has reviewed the Bill and recommends its approval with amendments as outlined in the Schedule under Chapter Seven of this Report.

Hon. (Dr.) John Kanyuthia Mutunga, PhD, CBS, MP

Chairperson, Departmental CommitteeonAgriculture andLivestock

1.0 PREFACE

I.I Establishmentof the Committee

• TheDepartmentalCommitteeonAgriculture and Livestockisoneof thetwentyDepartmental Committees of the National Assembly established under StandingOrder 2I6whose mandate pursuanttotheStandingOrder216(5)is asfollows:
• To investigate, inquire into, and report on all matters relating to the mandate, management, activities, administration,operations and estimatesoftheassignedministries anddepartments;
• ii. To study the programme and policy objectives of Ministries and departments and the effectiveness of theirimplementation;
• ili. On a quarterly basis, monitor and report on the implementation of the national budget in respect of its mandate;
• iv. To study and review all the legislation referred to it;
• vi. To investigate and inquire into all matters relating to the assigned Ministries and departments as they may deem necessary, and as may be referred to them by the House;
• V. To study, assess and analyse the relative success of the Ministries and departments as measured by the resultsobtained as comparedwith their statedobjectives;
• vii. Tovet and report on all appointments where the Constitution or any law requires theNational Assembly to approve, except those under Standing Order 204 (Committee on appointments);
• ix. To make reports and recommendations to the House as often as possible,including recommendation ofproposed legislation;
• vii. To examine treaties, agreements and conventions;
• X. To considerreports of Commissions and IndependentOffices submitted to theHousepursuant to the provisionsofArticle254oftheConstitution;and
• xi.To examine any questions raised by Members on a matter within its mandate.

1.2MandateoftheCommittee

• 2.In accordance with theSecond Schedule to theStandingOrders,the Committee is mandated to consider, agriculture, livestock, food production and marketing.

3. In executing its mandate, the Committee oversees the Ministry of Agriculture and Livestock Development.

CHAPTERONE

1.3 Committee Membership

4. TheDepartmental CommitteeonAgricultureand LivestockwasreconstitutedbytheHouse on 5th March, 2025 and comprises the following Members:

Chairperson

Hon.(Dr.) John Kanyuithia Mutunga,PhD, CBS,MP Tigania West Constituency UDA Party

Vice-Chairperson

Hon.Brighton Leonard Yegon, MP Konoin Constituency

UDA Party

Hon. Sabina Wanjiru Chege, CBS, MP Nominated Member Jubilee Party

Hon.Gabriel GathukaKagombe,MP Gatundu South Constituency UDA Party

Hon. Ferdinand Kevin Wanyonyi, MP Kwanza Constituency

Hon.MonicahMuthoni Marubu,MP Lamu County

Ford Kenya Party

IndependentMember

Hon. Geoffrey Makokha Odanga, MP Matayos Constituency ODM Party

Hon.PatrickKibagendi Osero,MP Borabu Constituency

ODM Party

Hon. Justice Kipsang Kemei, MP Sigowet/Soin Constituency UDA Party

Hon.Yussuf Mohamed Farah,MP WajirWest Constituency ODM Party

Hon. Jared Odoyo Okelo, MP Nyando Constituency

Hon.John Okwisia Makali,MP Kanduyi Constituency

ODM Party

Ford Kenya Party

Hon. Lawrence Mpuru Aburi, MP

Hon. Ruth Adhiambo Busia Odinga, MP Kisumu County ODM Party

Tigania East Constituency NOPEU Party

Hon. David Kiplagat, MP

Soi Constituency UDA Party

I.4 Committee Secretariat

• 5.The Committee is facilitated by the followingSecretariat:

Ms. Laureen Omusa Wesonga ClerkAssistantI/Head ofSecretariat

Mr. Victor Kanda Kilimo Clerk Assistant III

Mr. David Ng'eno Principal Research OfficerIl

Ms. Brigitta Mati Senior Legal Counsel

Mr.Shadrack Musyoki Senior Research Officer

CPA Robert Ngetich Fiscal Analyst I

Mr. Gerald Kadede Legal Counsel II

Ms.Edith Chepngeno MediaRelationsOfficerIll

Ms. Jacinta Maru Sergeant-At-Arms

Ms. Teresia Macharia Intern

CHAPTERTWO

2.0BACKGROUNDOFTHETEASECTORINKENYA

2.1 Introduction

6. Kenya's tea industry is a vital pillar of the country's socio-economic development. It contributes approximately2%to theGDPand accountsfor about23%of total export earnings.The sector supportsthelivelihoodsofaround6.5millionpeople,directlyandindirectly,representingnearly 13% of the national population. Furthermore, there are 834,129 registered tea growers spread acrosstwenty-one(2l)counties. 7. Kenya produces over 450 million kilograms of tea annually, generating more than Kshs. I20 billion in export revenue and Kshs. 22 billion from local sales. 8. Despite its significant economic contribution, tea farmers continue to face diminishing returns, farmers' income and reduced the sector's net contribution to national economic benefits, includingforeign exchange earnings. 4. The Tea (Amendment) Bill, 2023 seeks to introduce targeted amendments to the Tea Act, 2020. Its key proposals include:

• a) Facilitatingdirectsales of teatoincreasefarmer earnings;

6. Safeguarding tea revenues from mismanagement; and

• b) Ensuring transparent and timely payment of tea proceeds;

8. (P Promoting value addition and diversification, including the development of specialty teas, to enhance global competitiveness and profitability.

2.2 Merits of the Tea (Amendment) Bill, 2023

The Bill seeks to address several longstanding concerns raised by stakeholders in the tea industry, including:

• 10.Facilitation of direct sales of tea: Introduction of legal provisions for direct sales of tea by licensed factories or their representatives. It mandates that all processed and manufactured tea for export be offered for sale at the auction floor, while also permitting participation in direct domestic and international sales. The Cabinet Secretary for Agriculture and livestock Development, in consultation with county governments, will develop regulations governing the procedure for such sales (Clauses 34A, 36(1), and 36A (1)).
• I1. Introduction ofa minimum reserve price: Sub-clause 36A (2) stipulates that tea sold through direct sales must fetch a price higher than the highest auction price recorded in the preceding three months, thereby safeguarding farmer earnings.

12. Devolution of transport regulation: The amendment to Section 37 (l) of the Act requires Board. Sub-clause 37 (3) also empowers county assemblies to legislate procedures for registration and appeals, enhancing local governance and streamlining logistics. 2. I3. Direct settlement system for tea proceeds: Section 36 (5) of the Act is amended to introduce a Direct Settlement System,ensuring farmers are paid within fourteen (l4) days after an auction or sale. This System is to be supported by commercial banks regulated by the Central Bank of Kenya, ensuring timely and secure payments. 3. I4. Establishment of additional tea auction centres: Sub-Clause 36 (8) authorises the Cabinet Secretary,in consultation with counties, to establish additional tea auction centres in tea-growing regions,responding to calls from stakeholders in the West Rift for decentralization. 4. 15.Incentivesforvalue addition:Section53of theActis amendedto exemptspecialtyandvalueadded teas (packed in ≤l0 kg units) from paying the Tea Levy. Additionally, it reallocates Tea Levy funds: 60% to the Tea Board of Kenya (TBK) and 40% to the Tea Research Foundation, eliminating allocationsforpricestabilizationandinfrastructure. 16. Institutional continuity: The Bill does not propose changes to the existing institutional framework, ensuring continuity insectorgovernance.

2.3Demerits of theBill

The demeritsof theBill include:

17. Increased management agent remuneration: Sub-clause 34 (4) proposes increasing the fee 18. Reallocation of the Tea Levy: The amendment to Section 53 (5) of the Act removes funding for price stabilization and infrastructure development, potentially undermining long-term sectoral stability. 19. Lack of a Tea Revolving Fund: The Bill fails to establish a Tea Revolving Fund, similar to the Coffee Cherry Advance Revolving Fund, which could offer affordable financing to farmers.

2.4 Comparative Analysis

• global production in 2022. Kenyan tea exports represent 24% of global trade, with over 85 international markets including Pakistan, Egypt, the UK, UAE, and Sudan. Kenya's tea remains globally recognized for its quality and flavour.

CHAPTERTHREE

3.0 OVERVIEW OF THE TEA (AMENDMENT) BILL (SENATE BILL NO. / OF 2023)

3.1 Introduction

21. The Tea (Amendment) Bill (Senate Bill No. I of 2023) is a Senate sponsored Bill introduced by Senator Hillary K. Sigei, M.P. The Bill is co-sponsored by Hon. Brighton Leonard Yegon, MP. It was passed by the Senate on 8th October, 2024 and subsequently transmitted to the National Assembly for consideration in accordance with legislative procedures. 2. 22.The principal objective of the Bill is to amend specific provisions of theTeaAct(Cap.343) to enhance protection of tea growers' proceeds from potential mismanagement by factories. In addition, the Bill seeks to incentivise value addition by exemptingvalue-added teas from the Tea Levy, and to liberalize the tea sector by providing legal provisions for the direct sale of tea in overseasmarkets,thereby creatingbroader market access forproducers.

3.2 Regulatory Frameworks

• a) New Section 36 (8): The Cabinet Secretary, in consultation with counties, will prescribe
• b) New Section 36A: Provides for regulations governing direct sales of tea; and

c)

• (P Amended Section 37 (3): County Assemblies to enact laws for the registration of green leaf transporters, including an appeal process in case of denial.

3.3Potential ImpactoftheBil

The Bill is likely to have the following impact if enacted:

24. Increase in the management fee: Raising the management fee from I.5% to 2% could underminetheintendedfinancialbenefitstofarmers. 25. Improved marketing and payment systems: The Bill is likely to improve tea marketing by introducing direct sales and enforcing 14 day payment periods, thereby enhancing farmer liquidity andwelfare. 26. Value addition incentives: The proposed tax exemptions for value-added and specialty teas are expected to stimulate product diversification, enhance competitiveness,and increase export earnings.

3.4 Clause by Clause Provisions of the Bill

• 27.ClauseIprovidesfortheshorttitleofBill.

28. Clause 2 seeks to amend Section 2 of the Tea Act (Cap. 343) by: deleting definition of the words "export"" and "import" and substituting therefor new definitions; by amending definitions of the word "tea" and "value addition"; and by introducing and defining the terms "direct sales", "direct 29. Clause 3 seeks to amend Section 5 of the principal Act to do away with the powers of the Tea Board of Kenya to register commercial green leaf transporters. 30. Clause 4 seeks to amend Section 7 of the principal Act on the composition of the Board by replacing the Principal Secretary responsible for National Treasury or their representative with a representative of the Independent Producers Association of Kenya. 31. Clause 5 seeks to amend Section 8 of the principal Act to affect the appointment of a representative of the IndependentProducersAssociation of Kenya in the term of appointment of theBoard.

• 32.Clause 6 seeks to amend Section 22 of the principal Act to provide that where a Board member of a tea factory limited company is temporarily unable to perform their duties, the Board of the period of absence and not the Tea Board of Kenya.
• 33.Clause 7 seeks to amend Section 23 of the principal Act to provide for notification to the Board monthsinadvance.
• 34.Clause 8seeks to amend Section 31 of the principal Act to provide for declaration to the Board of all tea brought into the Special Economic Zone or an Export Processing Zone.

35. Clause 9 seeks to amend Section 34 of the principal Act to enhance the remuneration of services value of the tea sold per year to a maximum of two per centum. 36. Clause I0 seeks to amend Section 34 of the principal Act to incorporate the intended new 37. Clause I I seeks to amend the principal Act by inserting a new section immediately after section 34 of the principal Act toprovide for the sale of Kenya tea through auction and directsales and registration of tea processed and manufactured in Kenya. 38. Clause I2 seeks to amend section 36 of the principal Act to do away with the mandatory requirement of selling tea processed and manufactured in Kenya exclusively through auction, to

agents and ensure that growers are paid within fourteen days from the date of auction.

39. Clause I3 seeks to amend the principal Act by inserting a new section to provide for direct sale of tea and making of regulations for the direct sale of tea. 40. Clause I4 seeks to amend section 37 of the principal Act to provide that a person who intends to carry out the business of commercial green leaf transporter to register with the respective county government and not the Board and giving the county assemblies powers to make county specific regulation with respect to that. 41. Clause 15 seeks to amend section 53 of the principal Act to exempt value added tea from levy and reapportioning the tea levy. 42. Clause I6 seeks to amend section 74 of the principal Act to correct a grammatical error. 43. Clause 17 of the Bill seeks to amend section 76 of the principal Act by introducing a transitional provision.

3.5 Gaps not addressed by the Bill (as raised by Stakeholders)

During stakeholder engagement, stakeholders observed that the Bill has the following gaps:

44. Excessive taxation: Both national and county governments impose multiple charges, including levies,transportfees, and consultancy fees,increasing farmer costs. 45. KTDA marketing concerns: Stakeholders criticized manual bidding and unfair trade practices undertheKTDAstructure. 46. Governance issues: Alleged conflicts of interest in factory management and service outsourcing by TBK remain unaddressed. 47. Energy costs: Factories rely heavily on expensive firewood, which accounts for 35% of production costs, due to the stalling of hydro-power projects. 48. Labour costs: High CBA-driven labour rates, particularly with KPAWWU, continue to strain factory operations. 49. Broker fees: The I.5% per kilogram charge by East Africa Tea Trade Association brokers is above theglobal average and remains aconcern. 50. Factory governance structure: The need to reduce the number of electoral zones and directorsperfactoryfor efficiency.

51. Stalled Hydro-power projects: Farmers continue to repay loans for incomplete projects (e.g. Kapkoros andKiamokama),with no mechanisms for accessto affordable energy alternatives. 52. Outdated machinery: Lack of modernization is leading to increased maintenance costs and operationalinefficiencies. 53. Financial transparency: Stakeholders called for a forensic audit of factory assets and loan portfolios.

CHAPTERFOUR

4.0PUBLICPARTICIPATION/STAKEHOLDERCONSULTATION

54. Following the call for memoranda from the public through the placement of advertisements in the print media on 4th December 2024 and vide a letter REF: NA/DDC/A&L/2025/014 dated 3rd June, 2025 inviting stakeholders for a meeting, the Committee received memoranda from the following stakeholders on the Tea(Amendment) Bill(Senate Bill No. / of 2023):

• i. TheKenya Tea GrowersAssociation;
• ili. The Tea Board of Kenya;
• ii. The Council of Governors;
• iv. The Kenya Agriculture & Livestock Research Organization
• vi. The Kenya Tea Development Agency
• V. The East Africa Trade Association;and

8. 55.Thestakeholderssubmitted asfollows:

4.1 The Kenya Tea Growers Association (KTGA)

Ms. Lindah Oluoch, Chief Executive Officer, Kenya Tea Growers Association in a meeting with the Committee held on l0th June 2025, proposed the following amendments to the Tea (Amendment) Bill, 2023onbehalfofKTGA:

Clause2

56. Retain the meaning of "value addition" as it is in the Act. This will incentivize value addition, a current priority of the Government through clear, unrestrictive definition.

CommitteeObservation/Recommendation

The proposal was adopted with amendments by the Committee to capture the correct definitionof"valueaddition".

Clause7

57. Delete or clarify the clause by introducing of section 23 (l)(a) and (2) to disclose the interest sought to be protected that requires disclosure to the Board of large-scale tea grower transactions to the exclusion of other agricultural enterprises or tea enterprises will advise the purpose of the disclosure. This is because as a strategic sub-sector to Government, additional restrictions to the attractiveness of the industry toinvestors.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee, the notification to the Board of any intended sale or transfer is important to ensure that the interest of the farmer is protectedinsuchtransactions.

Clause II

• 58.Adoptthe amendment introducedonclause Il,section34(a) introducing direct sales of tea overseas.Adoptionof theproposalwillbefavourableto themarketingofKenya teas(a) the shall be registered with the Board prior to exportation"

Committee Observation/Recommendation

The proposal was adopted by the Committee since it supports the proposed amendment.

Clause12

59. Amend the clause by deleting paragraph (e) and maintain the clause in the Tea Act at section 36(7) which allows for competitiveness and disclosure of auction rules by the organizer to the Board. Thedisruptionof the existing auctionwilldestabilize thesector trade andoccasionloss of competitive advantages of a centralized. conveniently located auction attracting multiple buyers globally and suitably located to the regional logistics hub at the port of Mombasa.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because regulations do not disrupt the auction process but makes the process more efficient. The rules made by the auction organizer under section 36(7) do not amount to regulations.

Clause 13

• 60.Adopt clause 36A (1) and delete the proposed clause 36A (2) and (3) from the Bill.These stipulate price and procedure for direct sales. There exists a procedure for direct sales and related disclosures which can be monitored through regulatory oversight, and enhanced through digitizationofdata collectionfromindustry.Provisionsinregulationswhoseimplementation can be overseenby theRegulatorwould alsosuffice:and may easilybereviewed as appropriatebased ontheregulator'sobservations,aflexibilitythataprovisionintheActwill notallow.AlsoDelete the phrase "in consultation with County Governments" from Clause 36A(4).As indicated, allowing direct sales is advantageous to industry as it opens up avenues for tea marketing and sales.

CommitteeObservation/Recommendation

The proposal was adopted with amendments to provide that the prices offered at the direct sales shall be competitive and be sold at an average performance price of the last three months. The proposal to delete (3) was rejected by the Committee, it was amended to have the Cabinet Secretary consult the Council of Governors when making regulations.

• 6l. Delete the clause as its anti-competitive prescriptive. The Competition Act provides adequate stipulation in consultation with county governments in governing tea trading will create inefficiencies,restrict trade and conflict with national economic policies.lt discriminates against tea businessescompared to other sectors and lacks clarity on the issue it aims to address.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because it is important to safeguard the price of tea in the best interest of the grower. Further, county governments are stakeholdersandthereisnoharminconsulting them intheregulationmakingprocess.

• value-added teas.This will overall,incentivizevalue additionventures.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because it is important to specify the quantityexemptedfromlevy.

Clause14

63. Delete the Clause. Sufficient provisions exist in County Licensing laws and the Public Finance Management Act. As indicated above, the tea sector is strategic to the Government and has been prioritized under theBottom-UpEconomicTransformationAgenda(BETA).As suchproposals that introduce administrative bottlenecks at countylevel for the sector go counter to the Government's commitment to support the growth of the sector.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee. County governments can make county specific regulations since they have been given the mandate under the Act to licence Greenleaf transporters.

• 64.Reverse all immovable assets of the former Tea Board of Kenya and the former Tea Research Foundation ofKenya whichwerevested in theAgriculture andFoodAuthority and Kenya Agricultural and Livestock Research Organization upon the commencement of the Crops Act and theKenya Agricultural and LivestockResearch OrganizationAct shall byvirtue of this paragraph vest in the Board and respectively. This will strengthen the institutional framework for industry research and development.

CommitteeObservation/Recommendation

The proposal was adopted by the Committee because it supports the proposed amendmentintheBill.

4.2Council ofGovernors(CoG)

Ms.MaryMwiti,ChiedExecutive Officer,CoG,inaletter,Ref:COG/6/48Vol.68dated5thJune,2025, proposed the followingamendments to theTea (Amendment)Bill,2023:

Proposed Amendment to Section 5

65. Amend section 5 of the principal Act in paragraph (e) by deleting the words "commercial tea organizers." To align to the provision of section 38 of the Act which mandates the county governmentstoregistercommercialteanurseries.

CommitteeObservation/Recommendation

The proposal was adopted by the Committee. Registration of commercial tea nurseries is a function of county governments under section 38(l) of the Act.

Clause15

• 15(b)"Thetealevycollectedunder subsection(2)shallbeapportioned asfollows:twentypercentum shallbeappliedbytheBoardinthefurtheranceorexerciseofanyfunctionorpowerof theBoard;twenty percentumshallberemitteddirectlytotheTeaResearchFoundationforexecutionofthefunctionofthe Foundation; and sixtyper centum shallbe remitted directly to the tea growing counties tobe applied for development of the tea subsector on a pro rata basis". This is to align the provisions of the Act to theprovisionsofPart2sectionsIand7of theFourthSchedule totheConstitutionwhich stipulates that the County Governments shall be responsible for development and regulation of agriculture. To achieve this, counties need to be adequately resourced, we therefore propose that 60%of the Levy is directly disbursed tocounties for development of the tea sector.

CommitteeObservation/Recommendation

The proposal was rejected, the distribution of the levy to be retained as it is in the principal Act.

Clause2

67. Introduce the following new definitions: "County Executive Committee Member" means a County Executive Member forthe time being responsible for matters relating to agriculture; and "County Executive Committee" means a county executive committee as provided for under Article 179(2) of the Constitution".Toprovidefor the definitionof theCountyExecutiveCommitteeresponsiblefor matters relating to agriculture given that tea sector is largely devolved to the County Governments.

CommitteeObservation/Recommendation

The proposal was rejected because the terms are not used in the principal Act.

ProposedAmendmenttoSection5

68. Amend sections 5(l)(d), (e), (f), (g), (h) and (i) to read as follows: (d) "make recommendations to theCabinetSecretaryandCountyExecutiveCommitteeMembersontheformulationofpolicies,plans consultation with theCounty Governments,prescribe the management agents,tea auctionorganizers, development and regulation has been fully devolved to County Governments pursuant to the Fourth Schedule of the Constitution. Further, part 2 section 7 of the Schedule gives the County Governments the mandate of Trade development and regulation including-markets and trade licensing. It is therefore imperative that the County Governments are involved in the development oftheteaindustryforthebenefitofthefarmers.Thisthereforemeans thatregistrationof tea growers,licensingof tea dealers andprocessors as well licensingof as managingfactories and their

CommitteeObservation/Recommendation

The proposal was rejected by the Committee, the functions of the Board under the principal Act are sufficient.

ProposedAmendmenttoSection20

• 69.Amend section 20 (l) to read as follows:"Functions of County Governments 20(l) pursuant to the Fourth Schedule of the Constitution:(a)the Board,on behalf of the national government, shall be responsible regulation of Imports, exports, development and enforcement of standards in the tea sector;

and(b)eachCountyGovernmentshall implement thenationalpolicies totheextent thatthepolicies relate to the county and in particular shall be responsible for:(i) the development oftea grown within the warehouse operators, tea packers and manufacturers;(ii) license tea manufacturers;(iv)offer and coordinateofextensionservicesonteaproductionandmillingintherespectivecounty;(v)Inspect tea nurseries, processors and warehouses located within their respective counties; (vi) enforce county and national legislation onteaindustry codeof practice andotherindustry standards;(vii) incollaborationwith the Board and law enforcement agencies, enforce regulations within the county; (vii) sill and conservation of water; (ix) monitor and report of Incidences of pests and disease outbreaks and taking appropriate action in collaboration with the Board and other relevant government agencies; (x) regulation of cooperativesocietieswithinthecounty;and(xi)soilandwaterconservation".

Committee Observation/Recommendation

The proposal was rejected by the Committee. There is no proposed amendment to that section in the Bill and the current provision in the principal Act is sufficient.

Proposed Amendment to Section 21

70. Amend section 2l(2) and introduce a new clause 2l(3) for the this section to read as follows: 21 (1)"Every tea grower shall register with a processor; (2) Every processor shall keep or cause to be kept for statistical purposes, a register of all tea growers registered with under subsection (l) specifying: (a) the the variety of tea grown; and (d) such Information Board Government prescribe; and (3) Every processor shall share the information on the registered tea growers with the respective county government". To provide for a framework where the processors operating in the county share the information of teaproduction.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee. There is no proposed amendment to this section in the Bill and the current provisions in the Act are sufficient.

Proposed Amendment to Section 21

71. Amend section 21 (2) and introduce a new clause 21(6) to read as follows: 2l(2) "The respective CountyExecutiveCommitteeMemberwiththe approval of theCountyAssembly,shall prescribe regulations providing for the procedure for registration of smallscale tea growers and medium scale tea growers and the appeal process incase of refusal or denial of registration;(6)The tea factory shall furnish theCountyExecutiveCommitteeMemberwithparticularsofallregisteredsmall-scaleteagrowersor medium scale tea growers in such manner as the County Executive Committee Member may prescribe; and6A.TheCountyExecutiveCommitteeMembershallsharewiththeBoardtheparticularsofall registeredsmall-scaleteagrowersormedium scaleteagrowers inthecounty".Toaligntoourproposal under section 20 above and provide for consultations in the regulatory making process.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee. There is no proposed amendment to this section in the Bill and the current provision in the Act are sufficient.

Proposed Amendment to Section 23

72. Amend section 23(l) and (2) to read as follows: 23(1) "A large scale tea grower shall register with the respective County Executive Committee Member in a prescribed form and shall pay the prescribed fee;(I)(A)TheCountyExecutiveCommitteeMembersharetheparticularsofthelarge-scaleteagrowers with the Board ina prescribed form;and (2) The Cabinet Secretary in consultation with the County Governments shall prescribe regulations providing for the procedure for registration of large-scale tea growers and theappealprocess incaseofrefusalor denial ofregistration".Thisistoalignthe provisionsoftheActtotheprovisionsofPart2sectionsIand7oftheFourthScheduletothe Constitution which stipulates that the County Governments shall be responsible for development and regulation of agriculture and trade including markets, trade licenses and fair-trading practices.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee. The registration of large-scale growers is a mandate of the Board under the principal Act. The proposed amendment in the Bill that require a notification to the Board on any intended sale or transfer of ownershipissufficient.

Proposed Amendment to Section 25

• 73.Amend section 25 to read as follows: 25 (1)"A person shall not manufacture tea for sale except under andinaccordancewitha licenceissued underthisAct;(2) Aperson shall applyforamanufacturing licence to therespectiveCountyExecutiveCommitteeMemberinaprescribedformandshallpaytheprescribed fee; (3) The County Executive Committee Member may: (a) issue a manufacturing licence, in accordance with this Act; (b) refuse to issue the licence on any ground which may appear to the County Executive Committee Member to be sufficient and inform the applicant in writing of the reasons thereof;and (4) Beforetheissuanceorrenewalofamanufacturinglicencefora teafactorylimitedcompanytheCounty ExecutiveCommittee Member shall satisfyaitself that the applicanthasobtainedacertificate of conformity from the Board and a procurement policy providing for competitive procurement of goods and services". This is to align the provisions of the Act to the provisions of Part 2 sections I and 7 of theFourthSchedule to theConstitutionwhichstipulates thattheCountyGovernments shall be responsible for development and regulation of agriculture and trade including markets, trade licenses and fair-tradingpractices.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee. There is no proposed amendment to this section in the Bill and the current provision in the Act is sufficient.

Proposed Amendment to Section 28

74. Amend section 28 to read as follows: 28 (l) Every warehouse operator shall register with the respectiveCountyExecutiveCommitteeMember;(2)Apersonshallnotstoreteaunless thepersonis registeredinaccordancewiththisAct;(3)TheCabinetSecretaryshall,inconsultationwith theCounty Governments prescribe regulations providing for the procedure for registration of warehouse operators". This is to align the provisions of the Act to the provisions of Part 2 sections I and 7 of the Fourth Schedule to the Constitution which stipulates that the County Governments shall be responsible for development and regulation of agriculture and trade including markets, trade licenses and fairtrading practices.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee. There is no proposed amendment to this section in the Bill and the current provision in the Act is sufficient.

Proposed Amendment to Section 29

75. Amend section 29 to read as follows: 29 (1)"Every tea packer shall register with the respective County Executive Committee Member;(2) A person shall not pack tea unless the person is registered in accordance with thisAct;and (3)The CabinetSecretary shall,inconsultation with theCounty Governments ofPart2sectionsIand7of theFourthSchedule totheConstitutionwhichstipulates thatthe County Governments shall be responsible for development and regulation of agriculture and trade Including markets, trade licenses and fair-trading practices.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee. There is no proposed amendment to this section in the Bill and the current provision in the Act is sufficient.

Proposed Amendment to Section 37

76. Amend section 37 to read as follows: 37 (l)"A person who intends to carry on the business of commercial green leaf transporter shall register with the respective County Executive Committee Member; registered in accordancewith thisAct;and(3)TheCabinetSecretary shall inconsultationwiththeCounty Governments prescribe regulations providing for the procedure for registration of commercial green leaf provisionsof theActtotheprovisionsofPart2sectionsIand7oftheFourthScheduletothe Constitution which stipulates that the County Governments shall beresponsible for development

CommitteeObservation/Recommendation

The proposal was rejected by the Committee. The amendment introduces terms that have notbeenused intheBillsuchasChiefExecutive CommitteeMemberasa substitute for county government.

Proposed Amendment to Section 38

77. Amend section 38 to read as follows: 38 (l) "A person who intends to establish a commercial tea nurseryshallregisterwiththeCountyExecutiveCommitteeMemberwheretheyintenttoestablishatea addressed to at the county level.

Committee Observation/Recommendation

The proposal was rejected by the Committee. There is no proposed amendment to this section in the Bill. Additionally, there is no justification to substitute county government as it is in the Actwith the CECM because the CECM is part of the county government.

Proposed Amendment to Section 39

78. Amend section 39 to read as follows: 39 (1) "The Board or County Executive Committee Member shall,before registering, licensing orrenewing aregistration,certificate of conformity or licence under this Act, satisfy Itself that."To recognize the role of the County Executive Committee Members in issuanceoflicensesundertheAct.

Committee Observation/Recommendation

The proposal was rejected by the Committee. There is no proposed amendment to this section in the Bill and the current provision in the Act is sufficient.

Proposed Amendment to Section 40

79. Amend section 40(1), (2), (3) and (4) to read as follows: 40 (1) "A licence or certificate of conformity issued under this Act shall be subject to such conditions as the Board or County Executive Committee Membermay determineand as arespecified in the licence or certificate and to anyconditionswhich may beprescribed;(2)TheBoardorCountyExecutiveCommitteeMembershallconsidertheprofessionaland moral suitability of apersonapplyingfor a license or certificate and satisfy itself that such aperson is a fitandproperpersonforthegrantofthelicenseorcertificate;(3)Inconsideringanapplicationfora licence or certificate of conformity,theBoard or CountyExecutive Committee Member may requireto be satisfiedas to;and(4) TheBoardorCountyExecutiveCommitteeMembermayatany timeduringthe validity of a licence".To recognize the role of the County Executive Committee Members in issuanceoflicensesundertheAct.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee. There is no proposed amendment to this section in the Bill and the current provision in the Act is sufficient.

Proposed Amendment to Section 41

80. Amend section 41(l) and (2) to read as follows: 4l (1) "An application for the renewal of a licence under this Act shall be made to respective County Executive Committee Member in a form prescribed not later than thefirst day of themonthofJune inwhich thecurrent licenceis due toexpire;and(2) Despite prescribedby theCountyExecutiveCommitteeMember'.TorecognizetheroleofCountyExecutive Committee Members in issuance of licenses under the Act as per the provisions of the Fourth Schedule to the Constitution.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee. There is no proposed amendment to this section in the Bill and the current provision in the Act is sufficient.

Proposed Amendment to Section 42

81. Amend section 42 to read as follows: 42. "The County Executive Committee Member may revoke, of the licensed activity under any otherwrittenlaw,has been committedby the licence holder or any with".Torecognize the role of the CountyExecutive Committee Membersin issuanceof licenses under the Act asper the provisionsof theFourthSchedule to theConstitution.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee. There is no proposed amendment to this section in the Bill and the current provision in the Act is sufficient.

Clause4

82. Amend section 43 to read as follows: 43(1) "The holder of a licence which is revoked shall lmmediately surrenderittotheCountyExecutiveCommitteeMember;and(2)A licenceholdermayatanytime surrender thelicencetotheCountyExecutiveCommitteeMemberandthelicenceshallceasetohave effectimmediately".TorecognizetheroleoftheCountyExecutiveCommitteeMembersin issuance of licenses under the Act as per the provisions of the Fourth Schedule to the Constitution.

Committee Observation/Recommendation

The proposal was rejected by the Committee. There is no proposed amendment to this section in the Bill and the current provision in the Act is sufficient.

Clause44

83. Amend by repealing section 44 and replacing it with new section 44 to read as follows: 44 (l) "An Cabinet Secretary on or in respect of: (a) the grant, refusal, renewal, variation or revocation; or (b) the conditions imposedonthegrant,renewal orvariation,ofacertificate;(2)Anapplicantfororholder of a licence who is aggrieved by a decision of the County Executive Committee Member may appeal to the renewal,variation orrevocation;or(b)theconditionsimposedon thegrant,renewal orvariation,ofa licence;(3) A person aggrieved by the decisions of the Cabinet Secretary or County Executive Committee under sub-section (l) and (2) may appeal to the High Court; and (4) An appeal under this section shall be lodged within thirty days from the date on which the appellant first received notice of the decision". To allow the county governments to appoint persons qualifies as crops inspectors for purposes of assisting the county in discharging its mandates under the Act.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee. There is no proposed amendment to this section in the Bill and the current provision in the Act is sufficient.

Clause49

84. Amend section 49 to read as follows: 49 (l) "The Board or County Government may appoint qualified persons to be crop Inspectors for the purposes of this Act; and (2) For purposes of subsection (l), the Board in consultation with County Governments may,by regulations,prescribe the qualifications fora crop purposes of assisting the county in dischargingits mandates under theAct.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee. There is no proposed amendment to this section in the Bill and the current provision in the Act is sufficient.

Clause74

85. Amend section 74 (1) to read as follows: 74 (1)"The Cabinet Secretary may, in consultation with the Board and County Governments make Regulations".Agriculture is fully devolved under the Constitution,it is thereforeimperative that the CabinetSecretary consults CountyGovernments in thedevelopmentofregulations asimplementationhasadirectimpactonhowthecountieswill undertake theirfunctions asprovided for under the FourthSchedule to the Constitution.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee. County governments are consulted on the regulations that affect counties and not all regulations made under the Act

4.3 The Tea Board of Kenya (TBK)

Mr. Willy Mutai, Chief Executive Officer, TBK ,in a meeting with the Committee held on 25th July, 2025, , proposed the following amendments to the Bill on behalf of the Tea Board of Kenya:

Clause2

86. Amend section 2 (d), definition of the word "value addition" to read as follows: "improvement on madeteathroughblendingorflavouringorbrandingandpackagingintoaretailpacketor acontainer holding not more than ten kilograms, or tea extracts, tea aroma and decaffeinated tea". To provide the correctdefinitionofthewordvalueadditionanddifferentiatevalueaddedteasfrombulkteas.

Committee Observation/Recommendation

The proposal was adopted by the Committee to capture the accurate definition of the term "value addition".

87. Amend by introducing a new definition of the word "e-trader" after Section 2 (e) to mean "a person

CommitteeObservation/Recommendation

The proposal was adopted by the Committee because the Committee proposes to introduce e-trade in the Bill

• 88.Amend definitions of "small-scale tea grower"to read as follows:"a person cultivating tea in a parcel e o s s n s pi definitions in the context it is used in the tea industry and ascribe the correct meaning to the amendmenton"teafactorylimitedcompany".

Committee Observation/Recommendation

The proposal was adopted by the Committee to align the definition to the context used in the tea industry.

89. Amend the definition of "medium-scale tea grower" to mean:"a person cultivating tea in a parcel of land supplying green leaf to a tea factory limited company; To align the definitions in the context it is used in the tea industry and ascribe the correct meaning to the amendment on"tea factory limited company"

CommitteeObservation/Recommendation

The proposal was adopted by the Committee to align the definition to the context used in the tea industry.

• stipulatedcustomer specificationsforadeterminedcustomerwith the exception of straight-line teas and drier mouth teas".

Committee Observation/Recommendation

The proposal was rejected by the Committee because the term has not been used in the principal Act

• 91.Introduce a new definition of"straight-line teas"meaning"black cut-tear-curl teas that fall within the teagradesofferedatthe MombasaTea Auction includingPekoe FanningOne (PFl),BrokenPekoe One (BP1), Dust-1, Pekoe Dust (PD) and secondary grades"

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because the term has not been used in the Act.

Proposed Amendment to Section 5

92. Amend by deleting the word "commercial' before the words Greenleaf. Commercial green leaf transporters willi be registered by the County Governments and not by the Board. To bring all greentransporterswithin theregulatory ambitoftheTeaActandnot just commercial green transporters.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because registration of commercial green leaf transporters is a function of the county government and not the Board. The BillintendstodeleteitfromthefunctionsoftheBoard.

Proposed Amendment to Section 22

93. Amend section 22 by deleting sub-section (1) and renumbering subsections (2), (3), and (4) accordingly.DeleteSection one as the size of theBoardof teafactorycompanies isprovided for undertheArticlesofAssociation.

Committee Observation/Recommendation

The proposal was adopted by the Committee to allow the constitution of company boards to be governed by their Memorandum and Articles of Association and the Companies Act.

Proposed Amendment to Section 25

94. Amend by deleting section 25 (3) since section 31 of the principal Act is amended by deleting 'after consultation with the CabinetSecretary".This is because Issuance of licenses and registrations is not apolicyissuebutisoneof theroutinefunctionsoftheBoard as a semi-autonomousState Corporation. The requirement to consult the Cabinet Secretary during issuance of licenses be deleted. Appeals on issuance or non-issuance to be made to the Cabinet Secretary.

CommitteeObservation/Recommendation

There is no proposed amendment to this section in the Bill, however, the Committee adopted the proposal because issuance of licence by theBoard does not require the consultation of the CabinetSecretary.

Proposed Amendment to Section 25

95. Amend section 25 by adding a new sub-section 25(6) to read as follows: "a holder of a tea manufacturing license shall notify the Board of any intended sale or transfer of ownership of its holdings 6monthsbefore the transaction is affected".The CabinetSecretary shall make regulationstoprovide ownership of a tea factory that may have material effects or impact on the tea value chain.

CommitteeObservation/Recommendation

The proposal was adopted with amendments by the Committee to allow only a notification of change of ownership to the Board without having a specific timeline since transfer of property is governed by other laws.

Proposed Amendment toSection3I

96. Amend Section 31(1)(a) to be under a different margin note, not imports. Teas destined for Special

Committee Observation/Recommendation

The proposal was rejected by the Committee because section 3I is on imports.

Proposed Amendment to Section 32

97. Amend Section 32 of the principal Act by adding a new subsection 3(c) as follows; "The servicesrendered"Theratespayable for servicesrenderedbyteabroker by a tea factory or a tea buyer/exporter to be prescribed through regulations.

Committee Observation/Recommendation

The proposal was rejected by the Committee. The money paid to brokers must be capped to cushion farmers from exploitation.

Proposed Amendment to Section 32

98. Amend Section 32(4) by deleting the words "limited company" appearing immediately after the being applicable to all teafactories.

Committee Observation/Recommendation

The proposal was rejected by the Committee. The money paid to the brokers must be capped tocushionthefarmersfromexploitation.

Proposed Amendment to New Section 34A

99. Amend by inserting the following new subsection: 34A(1)(c) "E-commerce; and 34A (2) The Cabinet Secretary may prescribe regulations providing for the sale of teas through the auction, direct sales and ecommerce."

Committee Observation/Recommendation

The proposal was adopted by the Committee to incorporate e-commerce in the trade oftea.

Proposed Amendment to New Section 34B

• 100.lntroduce the following new section 34 (B) to operationalize section 34 (A) (l) (c): 34 B (1) "A personwhointends to establish ane-commerceplatformforsaleoftea shall registerwith theBoard;(2) A person shall not establish ane-commerceplatform for tea unless theperson isregistered in accordance with this Act;(3) The Cabinet Secretary shall prescribe regulations providing for the procedure for registrationofe-traders and theappealprocessincaseofrefusal or denial ofregistration;and(4)A person who contravenes subsection (2)commits an offence and shall,on conviction,be liable to imprisonmentfor a termnot exceeding threeyearsortoa finenot exceedingfivemillion shillings or to both". This to provide regulatory the framework for sale of teas through an e-commerce platform.

Committee Observation/Recommendation

The proposal was adopted by the Committee to operationalize the provision on ecommerceinthetradeoftea.

Proposed Amendment to Section 36

• 101.Delete Section 36 (c) (5). The proposed amendment will be difficult to implement as proceeds for tea sales for the entire month are aggregated in the tea factories account and then paid to the tea grower by the 5th of the following month.

Committee Observation/Recommendation

The proposal was adopted by the Committee, the current system of paying growers works well and the proposed mode might be impractical to implement.

Proposed Amendment to Section 36

• 102.Do not delete Section 36 (d) (6) because by deleting this section you will remove the safeguards in the Act meant to ensure tea growers are paid on time from the proceeds of sale.

Committee Observation/Recommendation

The proposal was rejected by the Committee because the growers need to be paid at the earliest time possible.

• 103.lntroduce the following new Section 38B to deal with the registration of a scheme owner and certification agent: 38B. (l) "A person shall not operate a voluntary certification scheme for tea in Kenya without being registered by the Board; (2) A certification voluntary scheme owner or certification agentoperatingin the tea industry inKenya shallregisterwith theBoard andpay theprescribed fee;(3) The Cabinet Secretary shall prescribe regulations providing procedure registration for the for registration ofvoluntary certificationschemeownerscertification agents;and(4) Apersonwhooperates avoluntary certificationscheme for tea inKenya withoutbeingregistered by theBoardcommits anoffence".To control the multiplicity of various certifications in the tea sub-sector which are increasing cost of production thus reducing the profitability of tea producers' earnings and growers'

Committee Observation/Recommendation

The proposal was rejected by the Committee. There is no proposed amendment to this section and the provision in the Act is sufficient.

• 104.Amend by introducing the following new section 40 (B) immediately after section 40 to disclose the beneficial ownership of a holder of a licence or registration certificate: 40B (l) "An applicant for a license oracertificateregistrationshalldiscloseinformationonbeneficialownershipofthecompanyor anyentity contained in the application; (2) A holder of a license or a certificate of registration shall withinI4 days

followinganyamendmentbeneficialofownershipinformation,furnishtheBoardwithacopyofthe amended beneficial owners'register; and (3) A person who fails to comply with Section 40B commits offence".To complywithSection93A of theCompanies Act,2015which requires every company registered inKenya toprepare andkeep a register of itsbeneficial owners.

Committee Observation/Recommendation

The proposal was rejected by the Committee because the requirement for beneficial owner is already provided for under the companies Act and the information can be obtained administratively.

Proposed Amendment to Section 48

• 105.Amend section 48 by deleting the word "eight" after the word "within" and substituting it with "ten". To enable the tea sector value chain players put in place the necessary infrastructure to do value addition.

Committee Observation/Recommendation

The proposal was adopted with amendments by the Committee to provide that the period for value addition shall be ten years pegged to the date of commencement of businessandnotthecommencementdateoftheAct.

Proposed Amendment toSection53

• from tea levy". To provide incentives for value addition of Kenya tea prior to export, brand and origin recognition of Kenya tea and include tea aroma, extracts tea and decaffeinated teas which arehighvalueintheteastobeexemptedfromtealevy

CommitteeObservation/Recommendation

The proposal was adopted to capture all the value-added tea and to provide incentives forvalue addition ofKenyan tea.

ProposedAmendmenttoSection54

• 107.Amend section 54 by deleting subsections 2 (b) and 3 (a). To align to the deleted provisions under Section 53 (5).

CommitteeObservation/Recommendation

The proposal to delete the Tea Levy from the Act was rejected by the Committee.

Proposed AmendmenttoSection74

• 108.Amend by introducing the following section 74(B) immediately after section 74: 74B (l) "The Cabinet Secretary may, in consultation with the Board, make guidelines to provide for:(a) Corporate Governance Guidelines for the tea industry; and (b) Code of Ethics and Conduct for tea Director(s)". To address the governance challenges in the tea sub-sector and; to foster ethics and integrity among directors in the tea factories.

Committee Observation/Recommendation

The proposal was adopted by the Committee to ensure uniform practice by directors in the governance of the tea sector.

ThirdSchedule:TeaBlocks

• 109.Amend the Third Schedule as follows: (l) Deleting "Narok" from the East Block and inserting it under the West Block; and (2) Adding "West Pokot" under the West Block. To correct misclassification of Narok under the tea blocks and to incorporate all tea growing under the West Block respectively.

CommitteeObservation/Recommendation

The proposal was adopted by the Committee to correct mis-classification of Narok under the tea blocks and to incorporate all tea growing under the West Block.

4.4 Kenya Agricultural and Livestock Research Organization (Tea Research Institute)

Ms. Lilian Kerfo, the Institute Director, Kenya Agriculture and Livestock Research Organization, in a meeting with the Committee held on 10r June, 2025, proposed the following amendments to the Bill:

Subtitle

• I10.Amend the overall purpose of the Act in the subtitle to read:"An ACT of Parliament to amend the Tea Act to provide for direct sales of tea, the payment of tea proceeds, governance of Tea Research Foundation, and for connected purposes" TRF is yet to be reformed due to structural inadequacy in the principal Act.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee. The Bill does not contain proposed amendmentstotheTeaResearchFoundation.

ProposedAmendmenttoClause55

• Il1.Amend Clause 55 by inserting the following sub-clauses (3) and (4): (3) "The headquarters of the Foundation shall be in Kericho County; and (4) The Foundation may establish such centres inKenya as it may consider necessary for the efficient performance of its functions". This key item is missing in the principal act.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provisionin theBill and theprovision in theActissufficient.

Proposed Amendment to Clause 56

• I12.Amend Clause 56 by inserting the following sub-clauses: ""(1) The Foundation shall consist of the followingorgans:a)theBoardof TeaResearchFoundationunder section58;b)the staffunderSection 69; c) the research centres specified in the first Schedule to the amended Act; and d) Associate centres, provided for under subsection (2); (2) Any organizationlinstitution which undertakes tea research or similar research,may apply to the Board to join the Foundation,and if the Board grants the application,the organization shall be anassociate institute oftheFoundation".Tofacilitate formation,creation of governancestructure and operationalisationof theTea ResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provision in the principal Act is sufficient.

Proposed Amendment to Section 57

• I13.Amend Section56 in principal Act without altering its contents by substituting it with Clause 57.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision intheBill and theprovision in theActissufficient.

PartVll

• 1l4.lntroduce a new clause 58 as follows:58(l)"The management of the Foundation shall vest in a Board which shall consist of: (a) a chairperson appointed by the President by notice in the Gazette; (b) thePrincipal Secretary responsible for Agriculture or a representative nominated by the Principal Secretary in writing;(c) the Secretary to the Science Commission appointed under paragraph 6 of the Second Schedule of Science and Technology Act or a representative nominated by the Secretary in writing; (d) the Principal Secretary responsible for National Treasury or a representative nominated by the Principal

Secretary in writing; (e) one person of either gender each who shall have knowledge and experience in theteasector andbefromthesmallholder subsectorintheEastandWestteablocksasinSecond Schedule nominated by the Cabinet Secretary;(f)One person representing Council of Governors nominated by the Cabinet Secretary;(g) one person elected and representing large scale tea growers who shall be an ex-officio member of the Board; (2) The Cabinet Secretary shall appoint the members under subsection (1) (d), (e), (f) and (g) by notice in the Gazette; and (3) A person shall not be appointed to be a chairperson of the Board of Foundation unless that person holds at least a degree or its equivalent in any discipline from an institution recognized in Kenya and has relevant experience in the tea sector". To facilitate formation, creation of governance structure and operationalisation of the Tea Research Foundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provisionin the Bill and the provision in the Act is sufficient.

Clause 58 (4)

• 115.Amend to introduce a new sub-clause (4):"The Chairperson and members appointed under section 6(1)(e),(f)and(g) shall serve for a term of three years renewable forone further term"Tofacilitate formation, creation of governance structure and operationalisation of the Tea Research Foundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions inthe Actis sufficient.

Clause 58 (5)

• I16.Amend to introduce a new Sub-clause (5): (5)"A person shall cease to be a member of the Board if suchperson:(a)is unable toperform thefunctions of his office by reason ofmental or physical infirmity; (b)isadjudgedbankrupt;(c) isconvictedofa criminal offenceandsentenced toa termofimprisonment ofnotless than six months;(d)is absent from three consecutive meetings of the Board without the permission of the Board;(e)resigns in writing,addressed,in the case of the Chairman to thePresident, and in the case of any other member, to the Cabinet Secretary; (f) fails to declare his interest in any matterbeing considered ortobeconsidered by theBoard;or(g)violates ChapterSixofthe Constitution". To facilitate formation, creation of governance structure and operationalisation of the Tea Research Foundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provisionintheBill and theprovisionsin theActis sufficient.

Proposed AmendmenttoSection59

• 117.Amend by introducing the following new clause 59: 59."The functions of the Board of the Foundation shallbe to:(a) carry out the objects and functions of the Foundation;(b) advise the Cabinet Secretary on matters ofpolicyrelating to tearesearch;(c)oversee theeffectiveco-ordinationof the operationsof the Foundation;(d) ensure that the activities of theFoundation are consistent with the policy and objectives oversee and evaluate on a continuing basis the programs being implemented by the Foundation; (f) direct strategic research and policy and prioritise and determine the research agenda;(g) co-operation with other lead agencies and Foundations in carrying out tea research;(h) development of an economic, effcient and cost-effectiveinternal management structure,strategic andannualplan of the Foundation;(i) implementation and fulfilment of the polices and agreed objectives, performance targets and service standards of theFoundation;(i) provision of advice as required on all matterswithin the responsibility of the Foundation;and k)perform such other functions as may be necessary for the exercise of its powers and functions under this Act'". To facilitate formation, creation of governance structure and operationalisation of the Tea Research Foundation.

Committee Observation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in theBill and theprovisionsin the Actis sufficient.

Proposed Amendment to Section 60:Powers of the Board

• Il8.Amend by introducing the following new Clause 60: 60. "The Board shall have all the powers Act, the Board shall have the power to: (a) enter into contracts; (b) manage, control and administer the assetsoftheFoundationinsuchmannerandforsuchpurposesasbestpromotesthepurposeforwhich the Foundation is established; (c) receive gifts, grants, donations or endowments made to the Foundation and make disbursement therefrom;(d) open suchbank accounts as may be necessary for the funds of out of which all payments made by the Foundation shall be made; (e) determine the provisions to be made forcapital andrecurrentexpenditure and forthereservesoftheFoundation;and(f)subjectto the approval of the Cabinet Secretaryfor the time beingresponsible for matters relating tofinance,invest any of the Foundation's funds not immediately required for the purposes of this Act, as it may determine".To facilitate formation, creation of governance structure and operationalisation of the Tea Research Foundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provisionintheBilland theprovisionsintheActissufficient.

Proposed Amendment to Section 6l:Committees of theBoard

• I19.Amend by introducing the following new Clause 6l: 6l (l) "The Board may, from time to time, establish suchcommittees as it considersnecessary for thebetter carrying outof itsfunctions under this Act;and(2) The Board may co-opt into the membershipofa committee established under subsection(1), such other persons whose knowledge and skills are found necessary for the functions of the Foundation". To facilitate formation, creation of governance structure and operationalisation of the Tea ResearchFoundation.

Committee Observation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and theprovisions in the Act is sufficient.

Proposed Amendment to Section 62: Delegation of Powers by the Board

• orin anyparticularcase,delegatetoanycommitteeoftheBoardorto anymember,officer,employee or agentoftheBoard,the exercise of any,ofthepowersortheperformance of any ofthefunctions or duties of the Board under this Act orunder any other written law".Tofacilitate formation,creation of governancestructure and operationalisation of theTea ResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

Proposed Amendment to Section 63: Conduct of Business Affairs of the Board

• 121.Amend by introducing the following new clause 63: 63. "The Board shall conduct its affairs in accordancewith theprovisionsofthe thirdSchedule,butsubject thereto,theBoardmayregulateits own procedure". To facilitate formation, creation of governance structure and operationalisation of the TeaResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in theBill and the provisions in the Actis sufficient.

Proposed Amendment to Section 64: Appointment of CEO

• of the Foundation who shall be competitivelyrecruitedby theBoard and appointed by theCabinet Secretary; (2) The Chief Executive Officer shall be appointed on 'such terms and conditions of service as the Board shall determine, with approval of the Cabinet Secretary, for a term of five years renewable for

onefurther term;(3)TheChiefExecutiveOfficershallbeanex-officiomemberoftheBoardandshall to theBoardforall theactivitiesoftheFoundation".Tofacilitateformation,creationofgovernance structureandoperationalisationoftheTeaResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

Proposed Amendment to Section65: Qualifications of Chief Executive Officers

• 123.Amend by introducing the following new clause 65: 65."A person shall qualify for appointment as Chief Executive Officer if that person: (a) holds a doctor of philosophy degree in agricultural related fields policy formulation; (i) policy-oriented research and analysis;(iv) management of human resource and finance; (v) meets the requirements of chapter six of the Constitution; and (vi.) has at least ten years' experience in leadership". To facilitate formation, creation of governance structure and operationalisation of theTea ResearchFoundation.

Committee Observation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

Proposed Amendment to Section 66: Qualification of a Deputy Director

• 124.Amend by introducing the following new clause 66: 66. "There shall be a Deputy Director of the Foundation. The Deputy Director shall be appointed by the Board to deputize the CEO on 'such terms and conditions of service as theBoard shall determine.A person shall be qualifiedforappointment as the Deputy Director, if the person: (a) is a citizen of Kenya; (b) holds a doctor of philosophy degree from a level in research; and (d) meets the requirements of chapter six". To facilitate formation, creation of governance structure and operationalisation of theTea ResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

Proposed Amendment to Section 67: Functions of the Chief Executive Officer

• 125.Amend by introducing the following new clause 67: 67 (1) "The Chief Executive Officer of the Foundation and shall be under thegeneral supervision and control of the Board;(2) Subject to sub-section (1), the Chief Executive Officer shall be responsible for the: (a) day-to-day operation of the Foundation;

• (b)administrationof theFoundation andcontrol of the staffoftheFoundation;(c)offunds,property and affairs of the Foundation; (d) management of funds, property and affairs of the foundation; (e) implementation of the policies andprograms of theFoundation andreporting thereon to the Board;(f) development of an operations plan for achieving the Foundation objects; and (g)performance of any other duty necessary for the implementation of this Act as may be assigned to him by the Board; and (3) The Chief Executive Officer shall submit to the Board for approval,not later than three months before the commencement of each financial year, a programme of activities of the Foundation in respect of that theTeaResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

Clause68:RemovalofChiefExecutiveOfficer

• 126.Amend by introducing the following new clause 68:68."The Board may remove the Chief Executive Officer from officeinaccordancewith his terms and conditions ofservice for:(a)inabilitytoperformthe functions of the office arising out of physical or mental incapacity; and (b) gross misconduct or misbehaviour; c) incompetence or neglect of duty; or any other ground that would justify removal from officeunder the terms and conditions of service".Tofacilitate formation,creation of governance structure and operationalisation of theTea ResearchFoundation.

Committee Observation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

Clause69:Staffof theFoundation

• 127.Amend by introducing the following new clause 69: 69 (1) "The staff of the Tea Research Institute this Act, shall be the staff of the Foundation; (2) The Board may appoint such officers, agents and staff asarenecessaryfortheproperandefficientdischargeofthefunctionsoftheFoundationunderthisAct upon such terms andconditionsof service as theBoard may determine;and(3) TheBoard may,on the advice of the Chief Executive Officer engage, on behalf of the Foundation, the services of such experts in respectofanyofthefunctionsoftheFoundationinconnectionwithwhichtheyareconsideredtohave operationalisationof theTeaResearchFoundation.

Committee Observation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in theBill and theprovisions in the Actis sufficient.

Clause7o:RemunerationoftheStaffoftheFoundation

• s s FoundationshallbepaidsuchremunerationandallowancesastheCabinetSecretaryshall,inconsultation withtheSalariesand RemunerationCommissiondetermine".Tofacilitateformation,creationof governance structure and operationalisation of the Tea ResearchFoundation.

Committee Observation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provisionintheBill and theprovisionsintheActis sufficient.

Clause 7l:CommonSealof theFoundation

• 129.Amend by introducing the following new clause 7l: 71 (l) "The common seal of the Foundation shall bekept in the custody of the Chief Executive Officer or such otherperson as the Board may direct,and shall not be used except upon the order of the Board;(2) The common seal of the Foundation shall,when affixedtoadocumentandauthenticated,bejudiciallyandofficiallynoticedandunlessthecontraryis provedanyorderorauthorizationbytheFoundationunderthissectionshallbepresumedtohavebeen duly given; and (3) The affixing of the common seal of the Foundation shall be authenticated by the signatures of thechairperson and the Chief Executive Officer:Provided that theBoard shall,in the absence of the chairperson or the Chief Executive Officer,in anyparticular matter,nominate onememberof the Board to authenticate the common seal oftheFoundation on behalfofeither the chairperson oftheBoard oftheTeaResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

Clause72:CommonSealoftheFoundation

• 130.Amend by introducing the following new clause 72: 72 (l) "No matter or thing done by a member of the Board or any officer,employee,or agent of the Foundation shall,if the matter or thing is done in goodfaithfor executing thefunctions,powersor dutiesoftheFoundationrender themember,officer, employeeoragentpersonallyliabletoanyactionsclaimordemandwhatsoever;and(2)Anyexpenses incurred by any person in any suit or prosecution brought against him in any court, in respect of any act which is done or purported to be done by him under the direction of the Foundation, shall, if the court holds that such act was done in good faith,be paid out of the general funds of the Foundation,unless governancestructure andoperationalisationoftheTeaResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provisionintheBillandtheprovisionsintheActissufficient.

PartVlll:Establishment of ResearchAdvisory Committee

Clause74

• 131.Amend by introducing the following new clause 74: 74 (l) "There is established a committee to be known as the Research Advisory Committee;(2)The Committee shall consist of:(a)Chairperson;and(b) of its functions under this Act; and (3) The Chairperson and members of the Committee shallbe appointed by the Board,from amongst persons who are not necessarily members of the Board,on such terms and conditions as theBoard may determine with approval of the Board".Tofacilitate formation,creation of governance structure and operationalisation of the Tea Research Foundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

Clause75:Functionsof theResearchAdvisoryCommittee

• 132.Amend by introducing the following new Clause 75: 75 (1) "The Committee shall: (a) make recommendations to the Board on Strategic and policy issues related to tea research and research program infrastructure;(b)oversee the implementation of policies and programs of the research and recommendations of the program review committee;(c) advice the Board on the status of programs and projectsundertakenbyFoundationandmakerecommendationsontheimprovementsthatmaybe undertaken; (d) make recommendations to the Board on mechanisms for partnering and integrating basic and translational research programs and for the adoption of research findings within the tea sector;(e) evaluateandmakerecommendationstotheBoardonofstrategicinvestmentareasandcollaborations withotherresearchorganizationsorindividuals undertakingtearesearch;(f)Provideadviceandcapacity building to research centres and individuals undertaking tearesearch and programmes pursuant to this Act;(g) reviewbi-annually the operations of the Foundation andbudgets of tea research in relation to the programsandinitiativesundertakenbytheFoundation;(h)provideaforumforfeedbackandthrough whichindividualsundertakingtearesearchintherelevant areaofresearch,cansubmittheirproposals andrecommendationstotheFoundation;and(i)performsuchotherfunctionsas shallbeassignedtoit theTeaResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provisionintheBillandtheprovisionsintheActissufficient.

Clause76:ConductofBusinessAffairsoftheCommittee

• 133.Amend by introducing the following new clause 76: 76 (l) "The provisions of the first Schedule shal applymutatismutandiswithrespecttotheconductofthebusinessandaffairsofthecommitteebut subject thereto the Committee, may regulate its own procedure". To facilitate formation, creation of governancestructure andoperationalisationof TeatheResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provisionintheBillandtheprovisionsintheActissufficient.

PartIX:Operationsof theFoundation

Clause77

• 134.Amend by introducing the following new clause 77: 77 (l) "The Board shall, for the effective coordinationoftearesearchanddevelopmentactivitiesinKenyabytheFoundationandindividuals conducting tearesearch,establish operational units within theFoundation inthefollowingsectors:(a) Crop improvement and management;(b) Sustainable ecosystem management and conservation;(c) Tea processing and value addition;(d) Policy and institutional development;(e)Partnership and business development; (f) Planning, resource mobilization and quality control;(g) Knowledge management and information communication;and(h)Administration and finances;(2) Each operational unit shall consist ofsuchmembersofthestaffandsuchotherpersonsas theBoardshall determine;(3)Eachoperational unitshallperformsuchfunctionsastheChiefExecutiveOfficer shall determine;and(4)TheBoardmay create such other operational units orreconstitute,merge ordissolve an operational unit as it shall consider necessary". To facilitate formation, creation of governance structure and operationalisation of the TeaResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in theBill and theprovisions intheActis sufficient.

Clause78

• 135.Amend by introducing the following new Clause 78: 78 "(l) The Chief Executive Officer shal conditions as theBoard shall determine;and(2) TheCentre Director shall,subject to the directions of the Chief Executive Officer, be responsible for the day-to-day management of a research Centre'". To facilitate formation, creation of governance structure and operationalisation of the Tea Research Foundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

X: Financial Provisions

Clause79:FundsoftheFoundation

136.Amend by introducing the following new clauses 79: 79. (1) "The funds and assets of the Foundation the exercise of its power or the performance of it functions under this Act, including proceeds fromPatents and Plant Breeders'Rights; (b) the National Research Fund;(c) such moneys as may be payable to the s 53(5)(c) and 54(3)(b) of Tea Act, 2020); (e) such gifts as may be donated to the Foundation; (f) such moneysasmaybeappropriatedbyParliamentforthepurposesoftheFoundation;and(g)moneysfrom anyothersourcegranted,donated,orlenttotheFoundation;and(2)ThePublicFinanceManagement Act, 2015 (2022), shall be applicable in the management of financial resources in the sectors at all levels". To facilitate formation, creation of governance structure and operationalisation of the Tea ResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provisionintheBill and theprovisionsintheActis sufficient.

Clause 80: Powers to Raise or Borrow Money

• 137.lnsert the following new clause 80: 80."The Board may upon consultation with the Cabinet Secretary and from time to time, raise or borrow, either by way of mortgage, charge or overdraft from a bank or in connection with the exercise of its powers or performance of its functions and duties under this Act'". To facilitate formation, creation of governance structure and operationalisation of the Tea Research Foundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in theBill and theprovisionsin theAct is sufficient.

Clause8l:PowerstoInvest

• 138.lnsert the following new clause 8l: 81."The Foundation may, from time to time and, subject to the provisionsof thisAct,invest anysumsstandingto thecreditof theFoundation,whetherinanyfund established by it, in securities or in any form of property in which the Trustees are authorized to invest

under the Trustee Act,and in such other securities or property as may be approved for the purpose by the Cabinet Secretary for the time being responsible for finance"".To facilitate formation, creation of governancestructureandoperationalisationoftheTeaResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in theBill andtheprovisionsin theActissufficient.

Clause 82:Accounts and Audit

• 139.lnsert the following new clause 82: 82 (l) "The Foundation through Board shall cause to be kept such books of accounts andotherbooksinrelation thereto of allits undertakings.funds,activities andproperty as the Cabinet Secretary may from time to time approve and shall,within a period of three months after the end of the financial year,or within such a longer period as the CabinetSecretary may approve, cause tobeprepared,signed andforwardedto theAuditor-General:(a)astatementofincome andexpenditure of the Foundation during that year; and (b) a statement of the financial position of the Foundation on the last day of that yea; and (2) The accounts of the Foundation shall be examined, audited and reported uponannuallyinaccordancewiththeprovisions ofthePublicAudit Act,2015".Tofacilitateformation, creation of governance structure and operationalisation of the Tea Research Foundation.

Committee Observation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

Clause 83: Annual Reports and Publications

• 140.lnsert the following new clause 83: 83 (l) "The Foundation shall,within a period of three months after the end of the financial year or within such longer period as the Cabinet Secretary may approve, submit to the Cabinet Secretary a report of the operations of the Foundation during such year, and the yearly financialpositionandsuchotherstatementsofaccountastheCabinetSecretaryshallrequire,together with the Auditor-General'sreport thereon;(2) TheFoundation shall,if the CabinetSecretary so requires, publish thereports,financialpositionandstatementsofincomeandexpendituresubmittedtohimunder cause to be tabled before Parliament thereports,financial position and statements of income and expendituresubmittedtohimundersub-section(l),andsuchstatements ofaccounts ashemayapprove, within aperiod of fourteen days of the receipt of thereports and statements by him,or,if Parliament is not sitting,withinfourteen days ofthe commencement ofits next sitting".Tofacilitate formation,

Committee Observation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and theprovisions in theAct is sufficient.

Clause84:FinancialYearoftheFoundation

• 14l.lnsert the following new clause 84:84."The financial year of the Foundation shall be the period of twelve months ending on thethirtiethof June ineachyear'.Tofacilitate formation,creation of governance structure and operationalization of Tea ResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

PartXl-MiscellaneousProvisions

• 142.lnsert the following new clause 85: 85 (1) "The Chief Executive Officer may, in writing, request any persontofurnishtheFoundationwith suchinformationor toproducesuchdocuments orrecords ashe deems necessary and relevant for the performance of the functions of the Foundation;(2) A person who: (a) refuses or fails,without reasonable cause,to comply with a request under subsection (l) to furnish any information or to produce any documents or records;or (b) in furnishing such information,makes a statement,whichheknows tobefalse,commits anoffence and shall be liable,onconviction,toafinenot exceedingfivehundred thousandshillings,or toimprisonmentforatermnotexceedingtwoyears,or to both". To facilitate formation, creation of governance structure and operationalisation of the Tea ResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

a) Board to Keep Information Confidential

Insert the following new clause 86: 86."The Board shall keep information acquired for purposes of theFoundationconfidential andshalldisclosesuchinformationonlyto theextentitconsidersnecessary for the proper performance of the functions of the Foundation". To facilitate formation, creation of governance structure and operationalisation of the Tea Research Foundation.

Committee Observation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

b) Limitations of Right to Access Information

35 of the Constitution is hereby limited under Article 24 of the Constitution to the nature and extent specified under subsection;and (2) TheFoundation,being a publicentity,shall be underno obligation as the Foundation, compromise the integrity of research, patent and other related rights". To facilitate formation, creation of governance structure and operationalisation of the Tea Research Foundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

c)OffencesforImproperDisclosure ofInformation

Insert the followingnew clause88:88(1)"Noofficer,memberof staff,or agent of the Foundation shall disclose information acquired under this Act except:(a) in the course of his duties under this Act; or (b)with the written consent of the Board;(2) Noperson whoreceives information in contravention of subsection(1)shall disclose orpublish theinformation;and (3) Aperson who contravenes subsection(1) or(2)commitsanoffence andshallbeliableonconvictiontoafinenotexceedingfivehundred thousand shillings or to imprisonment for a term not exceeding two years or to both suchfine and imprisonment". To facilitate formation, creation of governance structure and operationalisation of the Tea ResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provisionin theBill and theprovisions in theActis sufficient.

(p )Exemption

Insert the following new clause 89:"Subject to other applicable laws, theFoundation shallbe exempted from such taxes, duties,fees, levy,cess or other charges as the Cabinet Secretary for the time being responsible for finance may by, notice in the Gazette, specify". To facilitate formation, creation of governance structure and operationalisation of theTea ResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

e) Regulations

Insertthefollowing newclause90:90."TheCabinetSecretary may,on therecommendationof the facilitate formation, creation of governance structure and operationalisation of the Tea Research Foundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provisionintheBillandtheprovisionsintheActissufficient.

I43.FirstSchedule:Conduct of Business and Affairs of the Board of the Foundation

a)Tenure of Office

"Any member of the Board of Directors, other than an ex-officio member shall, subject to the provisions of thisSchedule,hold officeforaperiodofthreeyears,onsuchterms andconditions asmaybespecified intheinstrumentofappointment,butshallbeeligibleforre-appointment,subjecttoamaximumoftwo termsofoffice"

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in theBill andtheprovisions inthe Actis sufficient.

b) Meetings

"The Board shall meet not less than four times in every financial year and not more than four months shall elapse between the date of one meeting and the date of the next meeting. (l) Notwithstanding the shall, convene a special meeting of the Board at any time for the transaction of the business of theBoard; (2) Unless three quarters of the total members of the Board otherwise agree, at least fourteen days written notice of every meeting of the Board shallbe given to every member of the Board; (3) The quorum for the conduct of the business of the Board shall be seven members including the chairperson; (4) The chairperson shall preside at every meeting of the Board at which he is present but, in his absence, the memberspresentshall elect one oftheirnumbers topreside,who shall,withrespectto that meeting and the business transacted thereat,have all the powers of the chairperson;(5) Unless a unanimous decision is reached, a decision on any matter before the Board shall be by a majority of votes of the members presentandvotingand,in thecaseofanequalityofvotes,the chairperson or thepersonpresidingshal have a casting vote; and (6) Subject to subparagraph (4), no proceedings of the Board shall be invalid by reason only of a vacancy among the members thereof interest by Board members". To facilitate formation, creation of governance structure and operationalisation of the Tea Research Foundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is sufficient.

• c)Disclosure of Interest by Board Members

(1)"ifamemberisdirectlyorindirectlyinterestedinanycontract,proposedcontractorothermatter before theBoardand ispresent at a meetingoftheBoard at which thecontract,proposedcontract or othermatteristhesubjectofconsideration,thatmembershall,atthemeetingandassoonaspracticable afterthecommencementthereofdisclosethefactandshallnottakepartintheconsiderationor discussion of,orvote on,anyquestions with.respectto the contract or other matter,orbe counted in the quorumofthemeeting duringconsiderationof thematter:Provided that,ifthemajority ofthemembers present areof theopinion that theexperience or expertiseof suchmemberisvital to the deliberations ofthemeeting,theBoardmaypermit themembertoparticipateinthedeliberationssubjecttosuch (2) A disclosure of interest made under this paragraph shallbe recorded in the minutes of the meeting at which it is made; and (3) A member of the Board who contravenes subparagraph (l) commits an offence and is liable toimprisonment fora term not exceeding six months,orto a fine not exceeding one hundred thousand shillings,or both".

Committee Observation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provision in the Bill and the provisions in the Act is suffcient.

d)Execution of Instrument

"Any contract or instrument which,if entered into or executed by aperson not being a body corporate, wouldnotrequiretobeunderseal,maybeenteredintoorexecutedonbehalfoftheBoardby anyperson governancestructure andoperationalisationof theTeaResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provisionintheBill and theprovisionsintheActis sufficient.

e)Minutes

"The Board shall cause minutes of llresolutions and proceedings of meetings ofthe Board to be entered operationalisationoftheTeaResearchFoundation.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is no amendment to this provisionintheBilland theprovisionsintheActissufficient.

4.5Kenya TeaDevelopment Agency (KTDA)

Mr. Geoffrey Chege Kirundi, National Chairman, KTDA, in a meeting with the Committee held on 10th

• 144.KTDA reiterated that the Bill seeks to address critical aspects of the Tea Act No. 23 of 2020, but raised concerns on certain provisions namely: (a) Centralization of Functions: The Tea Board of leading to conflicts of interest and inefficiencies (b) Erosion of Autonomy: Provisions that override the Memoranda and Articles of Association of tea factory companies undermine the autonomy granted under the Companies Act, Cap 486; (c) Inadequate Representation at the Tea Board of smallholder farmers who contribute significantly to tea production; (d) Market Restrictions: and the ability of farmers toseekbetter market opportunities.
• and cost-effective dispute resolution mechanisms, reducing the burden on court cases to the factory companies.
• I46.Amend the Bill by introducing mandatory annual public disclosure of TBK's audited accounts,

Clause2

• I47.Amend the provision to read: "tea factory limited company" means a tea factory collectively owned scale tea growers and independent factories have been left out of the factory definition.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because the definition of "tea factory" as it is currentlydefined intheActissufficient.

Proposed Amendment to Section 7

• 148.Amend section 7 (f) by deleting the words "four persons. two.." and replacing thereof with the words"six persons, three..elected by the small holder".This representation of the small holder is inadequate as compared to the area they represent.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because membership of the Board is currently eleven against the Mwongozo Code which recommends a maximum of 9.

• 149.Delete Section 22 (l). The justification for leaving the number of directors open to the Articles is because of the turnover of the Tea Factory Company, the shareholding of the Tea Factory Company, the geographical administration of the various Tea Factory Companies Limited and the flexibility in the management of the tea factory.

Committee Observation/Recommendation

The proposalwas adopted by the Committee to allow the directorship of the companies to be managed by the Companies Act.

Proposed Amendment to New Section 34 A (2)

• 150.Delete Section 34 A (2) since it will create bottlenecks leading to delays in exportation of the tea. The requirement also duplicates duties undertaken by different government bodies in registering teafor the exportmarketsuch asKEPHIS.

CommitteeObservation/Recommendation

The proposal was adopted by the Committee. Requiring tea to be registered by the Board before export can lead to delays and loss of clients given the manner in which tea is sold. This is a process that can be done administratively without expressly stating in theAct.

Proposed Amendment to Sections 30 to 32

• 151.Amend sections 30 to 32 by removing the word "exporting" from registration; brokers to submit brokerage agreements and appointed by the tea factory boards.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee.

Proposed AmendmenttoSection34(9)

• tobeelected,numberofdirectors aswell astheirtenure,and howtodeal withconflictof interest whichshouldbeinlinewith theTeaFactoryArticlesofAssociation.

CommitteeObservation/Recommendation

The proposal was adopted by the Committee. The directors of tea companies are elected to sit in the holding companies because of the interests they protect. Any potential conflict of interest is governed by the Companies Act.

Proposed Amendment to New Section 36A (2)

• 153.Amend the provision to read: "The prices offered at the direct sales shallbe sold at a price above the averagepricerecordedattheauctionwithinthe threemonthsprecedingthesale."Directsalesoffer exporters and buyers the flexibility to negotiate prices based on market conditions, demand, and tea quality. Tying direct sales to the highest auction prices will limit this flexibility.

CommitteeObservation/Recommendation

The proposal was adopted by the Committee. An average price within a duration of lead to accumulation of stock and reduction of quality considering that the prices fluctuate.

Proposed Amendment to Section 36 (3)

• 154.Amend the provision to read:"The Cabinet Secretary shall, in consultation with the Council of Governor prescriberegulationsfortheprocedureofdirectsaleoftea."Engagingwith thecountygovernments individually may lead to delays and inconsistencies in the formulation of regulations.

Committee Observation/Recommendation

The proposal was adopted by the Committee. It might be challenging for the Cabinet Secretary to consult all the 47 counties when making regulations, consulting the Council of Governorsmakes the process more efficient.

Proposed Amendment to Section 36 (6)

• payable per Factory Company Limited will vary, thereby taking away from the uniformity of payment within the sector.

Committee Observation/Recommendation

The Bill proposes a deletion of the subsection already. The proposal was adopted by the Committee.

Proposed Amendment to Section 36 (8)

• 156.Amend by deleting the provision and retaining the Mombasa Tea Auction as the sole auction centre because establishingmultiple auction centres in tea-growing counties risks segmenting the tea market, leading to difference in pricing. This could dilute Kenya's competitive edge in the global teamarket,whichbenefitsfrom acentralisedpricingsystem.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because the intention of the proposed centres.

Proposed Amendment to Section 47 (1)

• 157.Amend by harmonizing and making fee structures transparent across all counties. County fees lacksafeguards against double taxation/economicbarriers.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because county governments are independent and have structures for charging fees within the law.

Proposed Amendment to Section 48 (1)

• additional responsibility.

CommitteeObservation/Recommendation

The proposal was adopted with amendments to allow for a ten-year period for value addition pegged on the commencement of business and not the commencement of the Act.

Proposed Amendment to Section 53

• 159.Amend by capping the levy at Kshs. I/Kg of made tea while exempting specialty/value added tea. Also revise allocation to 70% marketing, l0% TBK functions and 20% research and delete infrastructure provision and/or fund TBK and Tea Research Foundation from the ex-chequer.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee.

ZONES

Zone 2&3

Clause 3 (section 5)

• 160.Amend by deleting paragraph (b) and (i); and amending paragraph (l) by removing minimum payment. Retain maximum payment period. Conflicting roles and distortion of market dynamics.

CommitteeObservation/Recommendation The proposal was rejected by the Committee because the functions of the Board under theActare sufficient.

Clause 4 (section 7)

• 161.Replace with a minimum of seven (7) directors representing the smallholders from East and West regional block. Under representation of smallholders at the Tea Board of Kenya.

Committee Observation/Recommendation

The proposal was rejected by the Committee because the membership of the Board is currently eleven against the Mwongozo Code which recommends a maximum of 9.

Clause 6(section 22)

• 162.Amend by deleting (2); and amending (4). Appointment should be as per the respective factories MEMARTS. Interference with Company Governance.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee

Zone 5

Clause 6 (section 22)

• I63.Amend section 22 (l) by removing "maximum of five" and replacing with "Minimum of six and maximumofninemembers"

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because there is a proposed amendment to delete the provision on the number of directors.

Zone 7

Clause 2

• 164.The current definition of "tea factory limited" limits tea factory ownership to small and mediumscale ownership by shareholding. Expand this provision to include all tea factories regardless of ownership structure, to ensure inclusivity and avoid discrimination.

Committee Observation/Recommendation

The proposal was rejected by the Committee because the definition in theprincipal Act is sufficient.

Clause 6 (section 22)

165.Proposes changes to the composition of the Board to 5 out of which 3 will be elected directors.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because the provision on the number of BoardmembershasbeendeletedfromtheAct.

4.6 East Africa Tea Trade Association (EATTA)

Mr. George Omunga, MD, East Africa Tea Trade Association in a meeting with the Committee held

Clause2

• 166.Amend definition of the word "value addition" by inserting the words "into a packet or a container holding not more than ten kilograms" appearing immediately after the word "branding" As read togetherwiththeTeaActuponinsertionof theamendment,ValueAdditionisdefined as "improvements on made tea through packaging, blending, flavouring, tea extracts, aroma and branding"into a packetor a container holding not more than tenkilograms".This definition restricts value-added tea as being tea packed into a container of not more thanlOkg. There are value-added tea products that are packed into 25Kg packages as required by markets like Sudan and other teas as tea extracts that are packed in drums, therefore going by this definition would exclude those.

CommitteeObservation/Recommendation

The proposal to amend definition of the term'value addition" was adopted by the Committee with amendment to capture the correct definition.

• 167.Amend paragraph 2 (e) by inserting the following new definitions in the proper alphabetical sequence"direct sales"to mean a contractual arrangement between a factory and an overseas buyer orlocalbuyerforthesaleofmadeteabasedonmutuallyacceptedtermsandconditionsenforceablein law";and"directsalesoverseas"tomeanbulk teasalesexporteddirectlybya teafactorytoanexport market. This is because there is no need of two definitions which mean the same.The first definitionispreferred asitrecognizesthatdirectsalescan eitherbeoverseas andlocally.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because the term has not been used in the Act.

Clause3

• 168.Amend the clause by deleting subclause (2) and substituting therefore the following new paragraph, "The Cabinet Secretary shall appoint the members under subsection (1)(e), (f), (g) and (h) by notice in the Gazette.
• 169.Amend the clause by deleting subclause (3) and substituting therefor the following new subclause, "The appointment of the chairperson or members of the Board under subsection (1)(a), (e), (f), (g) and

Committee Observation/Recommendation

The proposal was adopted by the Committee with amendment to remove the Principal Secretary for National Treasury from the list of those appointed by gazette notice by the Cabinet Secretary. The proposed amendment has been cured by paragraph 4(a)(i) of the Bill.

Clause 4

• 170.Amend by deleting subsection (l) and substituting therefor the following new subsection, "The persons appointed under section 7(l)(a),(e), (f),(g),and (h), shall serve for a term of three years be expunged from the clause as there exists no objective criteria to determine what constitutes good performance.

Committee Observation/Recommendation

The proposal was adopted with amendments by the Committee however, it has been curedby theproposed amendmentintheBill.

Clause 6

• Export Processing Zone shall be declared to the Board in the prescribed form.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because all tea needs to be declared to the board to control importations.

Clause 7

• 172.Amend Section 32 of the principal Act subsection (4) by deleting the words "limited company" appearingimmediatelyafterthewords"ateafactory".

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because it is important to stipulate the fee paid to brokers.

Clause8

• 173.Amend Section 34 (3)(a) and 34(4) of the Principal Act should by deleting and be addressed under the regulations in sections 74 (b) and (c) of the Tea (Amendment) Act 2023.

CommitteeObservation/Recommendation

The proposal was adopted with amendment by the Committee to retain definition of tea factory as it is currently in the Act.

Clausel0

174. Amend 10 (b) in subsection (2) by deleting subsection (1) and substituting therefor the following newsubsection,"A tea factory intending toparticipate ina tea auction shall:(a)register with theBoard and the auction organizer; and (b) participate in the auction directly and through a management agent". A tea factory can be allowed to register with the auction organizer or participate in the auction through the management agent.

Committee Observation/Recommendation

The proposai was rejected by the Committee because it is aiready provided for under section36(7)oftheAct.

Clause12

• 175.Amend section 36 by deleting subsection (8). The benefits of having a consolidated auction that accommodates all the teas from the region (East and Central Africa) provides economies of scale that translate tolower auction selling costs for theproducers as well as convenience to the local andglobalbuyerswhowhenblendingdifferent originteaswill need theteastobe easily accessible.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee.

• e pue (e) () vae uooas panpous ay Sualp pue (1) oe asnep udope Ka puawas1 from the Bill. The proposal is unduly prejudicial to processors of tea as businesses that should have freedom to sell their tea at an appropriate price/set price to ensure the business remains sustainable.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee, the provision on direct sales should be in the Act.

Clause13

• 177.Delete section 36A (3) & (4). Since consultation with county governments in the stipulation of procedure for direct sales will be unconstitutional for delegating national policy development for a scheduled crop to the county government, requiring county government consultation for tea trading will create ineficiencies,restrict trade,and conflict with national economic policies.It discriminates againstteabusinesses compared toothersectors andlacksclarityon theissueit aims to address. Additionally, it is unconstitutional to delegate tea policy direction to county governments.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee, the provision on direct sales should be in the Act.

• 178.Amend by deleting Clause 36B from the Bill. The proposal for a direct settlement scheme is not clear interms ofwho it is intended for and it interfereswith thefreedomof contracts.Tea producers other than the Tea Factory Limited Companies have obligations that may get disrupted by theimpositionof thesettlementscheme

Committee Observation/Recommendation

The proposal was rejected by the Committee because it is important to stipulate in the

Clause8

• 179.Amend by deleting Clause 36 (8) from the Bill. The proposal which envisions the setting up of auction centres within the counties.will compromise thebenefits of a Centralized Multi-origin auction location and platform, currently bringing together teas from the region (East and Central Africa) and which has the convenience of accessibility to the port and attraction of many Global Tea Buyers.

CommitteeObservation/Recommendation

The proposal was rejected by the Committee because the Bill intends to open up the marketforthetradeofteaandnotrestrictit.

Clause15

• 180.Amend the clause to adopt quantum based (kg) levy so that farmers who produces better quality are not punished. They proposed that the Tea Levy should be apportioned as follows: Tea Board (40%), tea marketing (20%), tea research (30%) and infrastructure development (10%)respectively.The10%infrastructuredevelopmentshouldbeadministered through the county governments in the tea growing areas while the 20% marketing allocation should be managedbyacommitteewithrepresentationfromthevariousteasectorplayersandtheTea Board of Kenya with clear annual budgets and a monitoring process.

CommitteeObservation/Recommendation

The proposal was rejected, the provision in the principal Act is sufficient

5.0COMMITTEEOBSERVATIONS

Having considered the Bill, the Committee made the following observations on the Tea (Amendment) Bill(SenateBillNo.Iof2023):

1. The amendments proposed to the Tea Act, 2020 pursuant to the out of court settlement between the Tea Board of Kenya, KTGA and East Africa Tea Traders Association aim at address various contentious issues thathad been raised in a Constitutional Petition filed by some tea industry stakeholders challenging implementation of various sections of the Tea Act, 2020. The withdrawal of the court cases by KTGA and EATTA was premised on the understanding that the proposed additional amendmentswouldbeconsideredbyParliament. 2. There is need to address the equitable sharing of the tea levy within the tea growing industry and Research Foundation and infrastructural development of the tea regions considering each need of the stakeholder and the development of the industry. 3. All the stakeholders were in support of the Bill noting that the tea sector in the country needed the engage constructively in matters that affect the tea industry and tea farmers in the sector.

CHAPTERFIVE

CHAPTERSIX

6.0COMMITTEERECOMMENDATION

The Committee having reviewed the Tea (Amendment) Bill (Senate Bill No. / of 2023) recommends that the House approves the Bill with amendments as proposed in the Schedule in Chapter Seven of this Report.