Senator Moses Kajwang's takes a bold step to help communities after his election

Hon. Moses Otieno Kajwang.


The Mombasa Tea Auction has operated like a cartel since 1957. It
facilitates the sale of 67% of the tea produced in Kenya and seven
other African nations. It has only 10 brokers who earn
commissions on all sales and who have been accused of fixing
prices to the detriment of tea farmers. These 10 brokers control
the tea export trade that accounts for 4% of the country’s GDP.
Today we visited the Auction as the Senate Committee on
Agriculture. We sought ways of enhancing transparency, efficiency
and competitiveness in the Auction with the ultimate aim of giving
tea farmers a better return.
We are glad to note that the Auction recently relaxed their rules for
registering new brokers; this will allow more players to be involved
in the intermediation of tea exports. We are also glad that the
auction is committed to implementing an e-auction platform; this
will provide a real time trading platform and reduce the risks of
price fixing and collusion by brokers.
Despite these positive gains, there is concern that the tea industry
requires urgent intervention to save farmers from opportunists.
There is also concern that some players blend our tea with inferior
teas thereby damaging the brand and flavor of the Kenyan tea in
international markets. The tax regime is also unfavorable, and as
Senate we will continue to broker discussions on reduction and
rationalization of some of the taxes that include Value Added Tax,
ad valorem tax and several other levies imposed by County
governments.
Tomorrow we will meet the State department of Fisheries to
establish the plans they have for the revitalization of fisheries at
the Coast and other strongholds like the Western Lake region.
It is my intention to bring the Senate Committee on Agriculture to
the Lake Victoria region to meet fishermen and to understand their
plight and aspirations. I will also be sponsoring amendments to the
Fisheries Management Act once it comes to the Senate from the
National Assembly.
My commitment to protect and promote our farmers and fisherfolk
has never been this strong!