The Kenyan tea sector is expected to undergo a raft of changes following proposals by the growers in Murang’a County to conform with the reforms.
In the draft proposal from the ten tea factories ratified by the 60 directors, the management agent fee will be contracted at 1.5 per cent of the teas sold, but not exceeding Sh10 million annually.
The previous management agent fee was at 2.5 per cent, with the reduced percentage geared towards increasing returns to the growers presently paid at Sh21 per kilogramme of green leaf.
The draft contains views of the tea growers collected by a consultant firm, where the factories’ management was designed to facilitate the agent’s take over the functions assigned to them.
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