Organisers, brokers, and buyers at the regional tea auction in Mombasa have been directed to deposit cash proceeds from sales expressly in the bank accounts of 54 Kenya Tea Development Agency (KTDA) managed factories within 14 days after the transactions.
The move comes after it emerged that factories run by KTDA Management Services Limited have registered with the auction organisers, through the management agent, in violation of the Tea Act, 2020.
Affected factories have been given until January 24, 2026, to register with the auction and the board, that they have access to electronic trading platforms, so as to ensure oversight and monitoring of auction proceedings.
TBK chief executive officer, Williy Mutai said some brokers and auction organisers channeled the proceeds through management agencies.
The move, he said, was against regulations and measures must be put in place and observed in full.
‘Section 36 (2) of the Tea Act 2020 requires all tea factory limited companies to register directly with the board (TBK) and the auction organiser in order to participate in the tea auction, and not through management agents,’ Mr Mutai said in a memo to KTDA and tea brokers.
According to section 36 (3) of the Act, the auction organiser is required to establish an electronic trading platform that is usable and accessible to all players in the tea value chains.
‘Section 26 (5) of the Act requires tea brokers, buyers, and the auction organisers to ensure that proceeds from the sale of tea are remitted to tea factory accounts within 14 days from the date of the auction,’ Mr Mutai clarified.
Mr Mutai said TBK shall undertake routine inspection and compliance audits to assess adherence to the directives and other applicable provisions of the Tea Act, 2020.
Those who would not comply will face penalties.
The memo dated January 16, 2026, is copied to Cabinet Secretary for Agriculture Mutahi Kagwe, Principal Secretary at the Ministry Paul Kipronoh Rono, KTDA Holding Limited chairman Chege Kirundi, East Africa Tea Trade Association (EATTA) chairman George Omuga, and the KTDA Management Services Limited Managing Director Collins Bett.
The tea industry faces a myriad of challenges, including a glut at the Mombasa tea auction, mainly caused by political upheavals in traditional market destinations for Kenyan.
KTDA has lately been forced to undertake management reforms due to dwindling earnings by the growers, the latest being a drop of Sh20.6 billion in payment to the farmers in the 2024-2025 financial year.
Mr Kirundi said the drop in payment was attributed to market forces and the shilling to dollar exchange rate dynamics in the year under review.
KTDA paid Sh69 billion in the year under review (2024/2025), for the growers supplying their produce to factories managed by the agency, as compared with Sh89.29 billion paid the previous financial year.
KTDA is embracing value addition in its factories with special focus on orthodox tea to grow farmer earnings.
with huge market openings in Japan, Russia, China, Germany, Iran, France, and countries in the Middle East and Eastern Europe.
Kenya is dependent on black CTC (Cut, Tear and Curl) tea to feed its traditional export market outlets, which include Pakistan, the United Kingdom, Egypt, Sudan, Kazakhstan, and Poland.
New market outlets are – China, India, Korea, Australia, Switzerland, Iran, South Africa, Ghana, Nigeria, and Morocco.