Agriculture PS Ronoh receives tea audit report, announces Sh3.5 billion reforms

The government has stepped up efforts to reform Kenya’s tea industry, announcing a Sh3.5 billion plan aimed at modernising the sub-sector and improving earnings for farmers.

Speaking when he received an audit report by the Tea Board of Kenya (TBK), Agriculture Principal Secretary Paul Ronoh said the reforms are focused on addressing long-standing challenges that have undermined farmer incomes and confidence in the sector.

He noted that the initial phase of the reform programme will target 19 tea factories, with interventions designed to boost productivity, reduce operational costs and ensure timely payments to farmers.

“These reforms are about putting money back into the pockets of farmers,” Ronoh said.

“By reducing fertiliser costs, improving irrigation and modernising factories, we are laying the foundation for timely payments and improved earnings.”

According to the Principal Secretary, the Sh3.5 billion reform package will prioritise the modernisation of factory equipment to improve efficiency and reduce operational losses that have eaten into farmer returns.

The plan also includes measures to lower the cost of fertiliser, one of the biggest expenses for tea growers, as well as strengthened irrigation systems to protect tea production from increasingly erratic weather patterns.

Ronoh said the reforms come against the backdrop of troubling findings contained in an audit covering 71 tea factories.

The report highlighted critical gaps in governance, financial management and operational efficiency across several factories, raising concerns over the sustainability of the sector and the welfare of farmers.

“I received the audit report from the Tea Board of Kenya, which underscores the need for transparency, accountability, and efficiency across factories,” Ronoh said.

He called for urgent improvements in governance, stressing that weak oversight and poor financial practices have contributed to delayed payments, high debt levels and reduced payouts to farmers.

“The issues raised must be addressed decisively to ensure tea farmers get fair returns for their produce,” he added.

Ronoh ordered the audit in October following widespread complaints from farmers about delayed payments, rising production costs and alleged irregularities in factory loan management.

TBK was tasked with reviewing operations across the 71 factories, examining financial management systems, procurement practices, loan obligations and overall governance structures.

The audit was intended to identify gaps in the management of the factories and provide a clear roadmap for corrective action across the sector.

Ronoh said the findings will now guide reforms not only in the 19 factories targeted in the first phase, but across all affected factories.

The Principal Secretary noted that improved governance will go hand in hand with the planned financial and operational reforms.

He said the Ministry of Agriculture will work closely with the Tea Board of Kenya and KTDA to ensure that audit recommendations are implemented within clear timelines.

“We will be firm on accountability and transparency while supporting factories to become more efficient and financially stable,” Ronoh said, adding that restoring farmer confidence remains a top priority.

Tea remains one of Kenya’s leading foreign exchange earners and a critical source of livelihood for millions of smallholder farmers, particularly in the Rift Valley, Central and Western regions.