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Inside Business Featuring Tea industry

The Managing Director Mr. Edward mudibo interview on K24 inside business

 

EATTA CSR 2016

The East African Tea Trade Association is a progressive and socially aware organization. As such we are dedicated to integrating good corporate citizenship into our business strategies. CSR is integral to the long term sustainability of our business. In line with the mandate of theAssociation, the following CSR Projects were supported under EATTA’s CSR Programme 2016:

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Mombasa International Show

The Mombasa International Show (MIS) was established in 1903 and is situated on the North Coast of the Coastal Resort City of Mombasa. This year EATTA participated in the Mombasa International Show under the ambit of AFA. The theme for the Trade Fair this year was “Enhancing Technology in Agriculture and Industry for Food Security and National Growth”, in other words . “Kuimarisha Teknologiaya Kilimo na Viwanda Ili Kujitosheleza Kwa Chakula Na Ustawi Wa Taifa”

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Visit by the CS, Ministry of Agriculture, Livestock and Fisheries (MOALF) Hon. Willy Bett


On Tuesday 12th April 2016, EATTA hosted the Cabinet Secretary for Agriculture Hon. Willy Bett, the Acting Interim Head of Tea Directorate Mr. Samuel Ogola, and Member of Parliament for Makueni as well as member of the Parliamentary Committee for Agriculture, Livestock and Cooperatives Hon. Daniel Maanzo.

This is the first visit by the Cabinet Secretary since he was appointed to the position in December 2015. On hand to meet with the CS were EATTA Board members including Mr. Jacob Kahiu, Mr. Gideon Mugo, Mr. Simon Gikanga and Mr. Ben Gitonga.

In his remarks to those present, Mr. Bett said that he had not received the final report of the task force constituted to look into the tea industry. He said that the Government was keen to adopt the recommendations in the task force in as far as it would be of benefit to the tea producer. He said that he was looking into the recommendation that the Ad Valorem Levy be reduced from 1% to 0.75%. He asked for a confirmation that the benefit of the reduction of the levy would accrue to the producer.

The CS was informed that of fact that the Mombasa Auction was a multi origin market, any tax subjected to teas from one origin in exclusion to other origin teas will disadvantage that tea. A buyer will discount the cost of the tax on Kenyan tea to cover the amount they will need to pay.

The CS wanted to know why the prices had been declining since the end of January. It was explained to him that the decline in prices is as a result of the increase in volume offered that is up 19% compared to the same period in 2015.

EATTA meets with UK Secretary of State for International Development

The Secretary of State for International Development in the UK, Hon. Justine Greening, was in Mombasa to assess the progress of Kenya in terms of trade, investment and economic growth, supported by her government.

As part of the programme, she met key private sector players based in Mombasa to discuss on trade, economic policy and regulatory matters.  She also sought to know more about transport infrastructure; doing business and investing in Mombasa; and priorities of the County of Mombasa. EATTA was represented in the meeting by the Trade Development Manager Mr. Brian Ngwiri. In the discussions held, Brian articulated the challenges faced by Mombasa based businesses caused by the poor road network, irregular and unreliable power supply and the Mombasa County Governments haphazard charging of cess and levies that are costly for the businesses based here. On tea specific issues that the tea industry is experiencing, Brian informed the Secretary for International Development that support for value addition initiatives including developing a common user facility would be a positive development. Brian gave the Secretary of State an update on the progress on automation of the Mombasa Tea Auction and the support from TradeMark East Africa. Brian, informed Ms Greening on the necessary support that would be welcome from TMEA for an end to end tea value chain intervention including capacity building in crop husbandry to ensure a better quality tea is produced upstream to capacity building to encourage SME’s develop necessary skills for developing new market opportunities.

Accompanying Ms Greening was the Principal Secretary for International Trade Dr. Chris Kiptoo and CEO of Shippers Council of East Africa Mr. Gilbert Langat. The Association was represented by Mr. Meshack Kipturgo of Siginon Group. Other organisations represented were KATO, KAM, Chamber of Commerce and Mombasa County Government.

EATTA Progress Update_April 2013

1.0. Meeting Between Kenya Revenue Authority and  EATTA

In the last update from the secretariat we informed you that we had written to KRA seeking an appointment to raise concerns on various issues of concern to the tea industry.  We obtained an appointment for 20th March 2013 and together with a few members of the trade, we went and met with the Senior Deputy Commissioner for Southern Region as well the Line Managers responsible for issues of concern to the tea industry.

The issues discussed in the meeting were;

  • Delay in cancellation of VAT bonds
  • Delay in reactivating archived T 810 forms
  • Lack of staff to release customs holds of containers

The outcome of our discussion was as follows:

a). Delay in cancellation of VAT bonds

Some of our members have been following up with KRA for cancellation of bonds going back 7 years. KRA informed the people in the meeting that part of the problem maybe exporters who fill the certificates of exports documents manually instead of the required online process. The Deputy Commissioner in charge of port operations committed to look into the matter and in a further follow up meeting held on Thursday 4th April 2013 a way was found to sort out the outstanding bond cancellation for one of our members.

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TMEA Promotes Capacity of Quality Management Systems

 East Africa Tea Trade Association  and TMEA East Africa Inaugurated a Capacity building initiative of Tea Industries in East Africa to implement recognized International Standards(Food Safety Management Systems)

The East Africa Tea Trade Association is excited about this partnership with TradeMark East Africa which is expected to build the capacity of the tea industry in East Africa.

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The 2nd Africa Tea Convention & Exhibition

Africa Tea Convention and ExhibitionThe East African Tea Trade Association is delighted to announce the 2nd Africa Tea Convention & Exhibition will be held  on 28th - 30th August 2013 at the Kigali Serena Hotel - Kigali, Rwanda. This will be the second Tea Convention & Exhibition to be organized by East Africa Tea Trade Association and it is expected to be a global event for tea industry. The 1st event was very successful and was attended by major tea importers and consumers of the African tea all over the globe

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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;

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EATTA donates tea to Pakistan disaster relief effort

The tea trade in Mombasa made a donation of 10,300 kilograms of tea to the people of Pakistan on 3rd November 2010 at the EATTA Secretariat after the suffering and devastation caused by the recent floods and heavy rains. The tea was packed in water tight 5 kilogram bags. This donation is made in recognition of the good trade relations between the Association members and the great people of Pakistan. The good relationship was exemplified recently by the visit of the High Commissioner of Pakistan to Kenya HE Masroor Jumenjo in April 2010 to EATTA.

The 2010 Pakistan floods began in July 2010 following heavy monsoon rains in the Khyber Pakhtunkhwa, Sindh, Punjab and Baluchistan regions and affected the Indus River basin. At one point, approximately one-fifth of Pakistan's total land area was underwater. The floods directly affected about 20 million people, mostly by destruction of property, livelihood and infrastructure, with a death toll of close to 2,000.

Pakistan is an important market of East Africa. Pakistan buys all our grades of tea unlike other markets that buy particular grades. The Pakistan market being predominantly Islamic, takes tea as the beverage of choice. Many of our important tea markets are seasonal in the tea they purchase from the auction so that in some months demand for tea goes down; therefore Pakistan’s demand consistent throughout the year making it an ideal market.