East African Tea Trade Association

Facilitating a world class trading platform for African teas.

Marketing

Best Value for African Tea in the Global Market

Tea Auction

Promotion of orderly sale of tea among members in Africa.

Member Countries

10

Members

267

Teas Sold In Tons

545954

Value in Billions

120

EATTA at a Glance

The East African Tea Trade Association is a voluntary organization bringing together Tea Producers, Buyers (Exporters), Brokers, Tea Packers and Warehouses, all working to promote the best interests of the Tea Trade in Africa. Currently, membership comprises over three hundred companies extending across the East and Central African borders. EATTA mandated to promote and facilitate the interests of all the stakeholders in the tea trade in Africa by creating an enabling business environment geared towards maintaining global standards and delivering tea products to the customers in the most profitable way.

Vision: To be the leading tea trade association globally

Mission: To facilitate a world class trading platform for African teas and provide sustainable service to members.

Core Business

TEA AUCTION

Promotion of orderly sale of tea among members in Africa through facilitation of the Mombasa Tea Auction operations and ensuring compliance with the constitution.

LOBBYING & ADVOCACY

To lobby regulatory and statutory bodies in member countries to create an enabling business environment for our members along the value chain.

MARKETING & MEMBERSHIP SUPPORT

To facilitate effective access to market and other relevant industry trade information.

INFORMATION CENTRE

To compile and circulate statistical information to assist members in their operations.

EATTA Advocacy Initiative

East African Tea Trade Association is the premier body representing the interests of tea producers, tea buyers, tea brokers, tea packers and tea warehouses. EATTA has 167 members in 9 countries in Africa. EATTA runs the Mombasa tea auction that is the second largest tea auction in the world after the Colombo auction. Of the tea exported globally, 32% passes through the Mombasa auction.

The auction has grown by a remarkable 300% in the past 20 years, by offering teas from all the member countries. The tea task force report of 2007 made specific recommendations based on challenges facing the industry. EATTA has identified four areas that need urgent address by the Government of Kenya;

The Governance Structure in The Tea Industry

Currently there are two Bills in Parliament aimed at the Tea sector. One sponsored by the Government and another, a Private Member (Kones Bill). There needs to be a harmonization of the two Bills. The harmonized Bill should take into account the following provisions:

  1.  A liberalized environment which is regulated only to the extent of avoiding chaos but not so much as to bring the hand of government to interfere with the running of the industry.
  2. The Government through the Ministry of Agriculture has responsibility to make appointments for its representatives to the Tea Board of Kenya. EATTA requests that the allocation from the tea industry be as follows; producers five slots -three representing the smallholders sector and two representing the plantations-, packers one slot, EATTA (auction organizer) to represent the trade one slot.
  3. The Government Bill gives the TBK sweeping powers to issue, refuse, revoke, cancel, suspend, or vary, with or without conditions of licenses and registration certificates under this Act. This is draconian and will drive away potential investors.
  4. The Ministry of Agriculture operationalize the Agricultural Sector appeals tribunal so that players in the tea industry that have grievances have an avenue to seek redress.

Multiple levies and taxation of the tea industry

The tea industry is subject to more than 30 taxes, fees, levies, charges and payments that increase the cost of doing business and adds the administrative burden on organisations seeking to comply. In some situations no direct service are rendered and makes the work of complying difficult and expensive. This acts as a barrier 10 investments as any additional investment is also subject to tax. Very small margins the farmers earn make it impossible for them to invest in research and development of the product and manufacturing process. In the last year, the gains to the farmer have been primarily because of the favourable exchange rate. If the dollar depreciates in value the gains will definitely be reversed. Ultimately the costs of the charges, levies and other payments are paid by the farmer, suppressing their earnings

Value Addition and Marketing Support

An analysis of the Sri Lanka tea export market shows that Kenya exported more tea in volume than Sri Lanka in 2009 by 15% but earned 26% more from their exports than Kenya did. This is because apart from selling her tea in bulk Sri Lanka also sells tea in value added form i.e. in packets, tea bags, instant tea and other forms. Sri Lanka sells 61 % of her tea in bulk and 39% in value added form. Tea industry players who may want to go into value added exports have to pay expensive duty at 25%to import packaging equipment and packaging material that can compete with other international brands. Kenya is not known as a tea growing country in some of our major consumer markets. It is packed in those markets after being blended with other teas, an arrangement that causes massive loss of value and taste. It also results in loss of jobs and intellectual property value.

Establish a Tea Development Fund

The Tea Amendment (No 2) Bill proposes to introduce an ad valor em levy at 2% to be charged at the point of import and export that will replace the current agricultural cess and manufacturing levy. We would wish to make a proposal that the levy be capped at 1% of the export value. It is proposed that the money from the levy be collected into a pool to be called a Tea Development Fund that is to be managed by a Board of trustees from the tea industry. We propose that the tea development fund will receive contributions from the exchequer and donors. We also propose that the Tea Board and Tea Research Foundation share 90% of the money from the fund on a 50:50 ratio. We would like the remaining 10% to be shared as follows; 6% to be placed into a contingency fund that will be used to cushion the trade from price and currency fluctuations. Of all the tea produced by factories in Kenya, 87% is sold through the Mombasa auction. EATTA that runs the auction is funded completely by the trade with no contributions from the Government. We would like to make a case for EATTA to be allocated 4% from the tea development fund.

As a start on the way forward, EATTA wishes to request a stakeholder driven approach by the Government to address the challenges to ensure a vibrant tea industry in Kenya.

Related videos on the articles

  • Tea trade dinner speeches
  • Modernising tea trade

East African Tea Trade Association

Tea Trade Centre, Nyerere Avenue.

P.O. Box 85174-80100 Mombasa (K)
Tel: +25441 2228460/2220093
Fax: +254412225823
Cell: +254 (0) 733 208700/722208699
Email:

Recent Updates

Collaborative Endeavor for Tea Advancement: EATTA Board Engages with Tanzanian Tea Leaders

Collaborative Endeavor for Tea Advancement: EATTA Board Engages with Tanzanian Tea Leaders

07 March 2024

In a recent milestone event, the EATTA Board convened with key stakeholders in Tanzania's thriving tea sector. The meeting included...

Tea Veterans Caucus Forum

Tea Veterans Caucus Forum

26 February 2024

Tea Veterans Caucus Forum organized by EATTA at the Marina English Point on Thursday, 22nd February 2024. The forum began...

The East African Tea Trade Association has a new Managing Director

The East African Tea Trade Association has a new Managing Director

02 January 2024

Join us in extending a warm welcome to Mr. George Omuga who brings a wealth of experience and a fresh...

EATTA CSR donation of USD 10,000 to Mombasa county for disaster emergency

EATTA CSR donation of USD 10,000 to Mombasa county for disaster emergency

11 December 2023

In integrating good corporate citizenship into our business strategies, the Board of East African Tea Trade Association (EATTA) donated USD...

Visit by Rwanda High Commissioner

Visit by Rwanda High Commissioner

09 November 2023

We hosted the Rwanda High Commissioner at the Secretariat today. Visiting EATTA was his priority. He expressed gratitude to EATTA...

Focus Group Discussion with Uganda Tea Producer members

Focus Group Discussion with Uganda Tea Producer members

14 August 2023

Description: Focus Group Discussion with Uganda Tea Producer members. Description: Focus Group Discussion with Uganda Tea Producer members. Description: Focus...

Meeting with the KRA Regional Coordinator

Meeting with the KRA Regional Coordinator

03 August 2023

EATTA held a meeting with the KRA Regional Coordinator Southern Region Kenya Mombasa (Name) on Wednesday 2nd August 2023. The...

Consultative Forum with the President

Consultative Forum with the President

02 August 2023

The East African Tea Trade Association was invited to a consultative forum with the President, His Excellency Dr. William Samoei...

Press Release

Press Release

24 May 2023

Press Release by East Africa Tea Trade Association (EATTA) on the insecurity and wanton destruction of property in the tea...

Fifth African Tea Convention & Exhibition

17 May 2022

The East African Tea Trade Association in collaboration with the Burundi Tea Authority (OTB) will be conducting the 5th African...

EATTA RESPONSE ON TEA REGULATIONS

11 September 2020

EATTA reponse to Tea Regulations

Tea Farmers urged to focus on improving quality of Tea

Tea Farmers urged to focus on improving quality of Tea

05 August 2019

Tea farmers urged to focus on improving quality of Tea

EATTA calls on farmers not to focus solely on raising tea volumes

EATTA calls on farmers not to focus solely on raising tea volumes

05 August 2019

The East African Tea Trade Association is appealing to tea farmers across the country to focus on producing higher quality...

US Ambassador Kyle McCarter

US Ambassador Kyle McCarter

21 June 2019

EATTA was honored to host the US ambassador to Kenya His excellency Kyle McCarter when he visited Mombasa Tea Auction...

Membership & Affiliation

Kenya Chamber of Commerce
Federation of Kenya Employers
International Tea Committee
 
 
 

EATTA is ISO 9001:2015 Certified.

EATTA is ISO 9001:2015 Certified

CONTACT INFORMATION

Hours:
Mon - Fri 8.00 AM - 5.00 PM

Tel: +254 41 2228460 / 2220093 / 2312336
Cell: +254 733 208700/ 722 208699
Fax: +254 41 2225823

© 2024 East African Tea Trade Association. All Rights Reserved. Designed By Web Solutions Kenya