The financial stability of Kenya’s tea industry is back in the spotlight after Githunguri MP Gathoni Wamuchomba alleged that years of mounting debt have left many factories unable to meet basic obligations to farmers.
In a detailed statement shared on X, the legislator said the Kenya Tea Development Agency (KTDA) has relied on borrowing for three consecutive years, with some factories now facing auction notices over outstanding loans.
Wamuchomba argued that the sector’s cash flow challenges contradict the tea export revenue figures presented in Parliament by President William Ruto earlier this year.
She questioned how factories could struggle with payments if national earnings from the commodity remain as strong as reported.
Tea is one of Kenya’s largest foreign exchange contributors, making the dispute significant for both farmers and the broader economy.
The MP also faulted Parliament for what she described as insufficient oversight of the sector during a period of financial stress.
She criticized the introduction of a proposed new levy under the Tea Amendment Bill 2025, warning that additional charges on factories could worsen an already fragile situation.
According to her statement, “Parliament has failed Kenyan tea farmers,” noting that many growers depend on annual bonuses for school fees and household expenses.
Wamuchomba further claimed that a senior government official suggested she could be arrested for “inciting farmers” after she raised concerns over factory debt.
She linked the alleged pushback to her efforts to form a parliamentary caucus on coffee and tea oversight, saying she was sidelined from chairing the team.
Kenya’s political history has seen frequent tensions between legislators and the executive over agricultural reforms, making such allegations particularly sensitive.
The MP announced plans to convene a special meeting bringing together factory leaders, tea farmers’ representatives and other stakeholders to develop a joint petition to government agencies.
She referred to previous interventions in the coffee sector, saying similar collective action could help address tea industry challenges.