1. THE DYNAMIC REGULATORY ENVIRONMENT
BY AGRICULTURE AND FOOD AUTHORITY ATC 2019

3. Contents INTRODUCTION DEVELOPMENT OF KENYA TEA INDUSTRY.
GLOBAL TEA SITUATION
ROLES AND LEVELS OF REGULATION.
CHALLENGES IN SELF AND LEGISLATIVE REGULATION
KEY OBSERVATIONS AND CONCLUSION

4. AGRICULTURE AND FOOD AUTHORITY
The Agriculture, and Food Authority (AFA) was established through an Act of Parliament, the Agriculture, and Food Authority Act of 2013.
The Act consolidates the laws on the regulation and promotion of agriculture and makes provision for the respective roles of the national and county governments in agriculture and related matters, in line with the provisions of the Fourth Schedule of the Constitution of Kenya.

5. MANDATE
Administer the Crops Act, and the AFA Act in accordance with the provisions of these Acts;
Promote best practices in, and regulate, the production, processing, marketing, grading, storage, collection, transportation and warehousing of agricultural and aquatic products excluding livestock products as may be provided for under the Crops Act, and the Fisheries Act.

6. DEVELOPMENT OF KENYA TEA INDUSTRY.

7. INDUSTRY DEVELOPMENT- HACTARAGE
YEAR
HACTARAGE
1999
118,542
2000
120,396
2001
124,292
2002
130,340
2003
131,453
2004
136,708
2005
141,315
2006
147,076
2007
149,196
2008
157,720
YEAR
HACTARAGE
2009
158,394
2010
171,916
2011
187,855
2012
190,717
2013
198,657
2014
203,006
2015
209,426
2016
228,178
2017
232,742
2018
234,300

8. INDUSTRY DEVELOPMENT- EXPORTS IN Kgs
YEAR
EXPORTS
1999
241,739,293
2000
216,989,625
2001
270,151,810
2002
272,458,768
2003
269,961,799
2004
333,802,071
2005
349,738,362
2006
313,720,495
2007
345,877,445
2008
383,443,886
YEAR
EXPORTS
2009
342,481,547
2010
441,021,493
2011
421,272,373
2012
430,204,569
2013
494,346,983
2014
499,379,622
2015
443,461,219
2016
480,330,230
2017
415,715,284
2018
474,861,590

9. INDUSTRY DEVELOPMENT- LOCAL CONSUMPTION- KGs
YEAR
Local consumption
1999
10,488,307
2000
12,653,577
2001
11,289,414
2002
12,628,238
2003
12,651,134
2004
13,626,020
2005
14,025,000
2006
16,549,414
2007
17,642,737
2008
17,387,119
YEAR
EXPORTS
2009
18,101,937
2010
18,704,479
2011
20,017,256
2012
22,744,333
2013
26,549,868
2014
32,179,851
2015
29,370,102
2016
29,751,875
2017
37,631,532
2018
38,005,170

10. INDUSTRY DEVELOPMENT- INDUSTRY PLAYERS
YEAR 
2012
2013
2014
2015
2016
2017
2018
CATEGORY
PRODUCERS 24 26 28 29 33 35
BROKERS 11
BUYERS/EXPORTERS 72 76 78 79 80 82 86
WAREHOUSES 15 16 18 19
PACKERS 48 53 60 68 90
103

11. GLOBAL TEA SUPPLY AND CONSUMPTION SITUATION

12. GLOBAL CTC PRODUCTION – MILLION KG
+ 264 m kg
(14.10%)

13. GLOBAL CTC PRODUCTION TRENDS – MILLION KG
+ 121 m kg
(6.01%)
+ 9 m kg
(0.45%)
+ 158 m kg
(8.55%)
- 24 m kg
(- 1.29%)

14. GLOBAL CTC CONSUMPTION – MILLION KG
+ 252 m kg
(14.03%)

15. GLOBAL CTC CONSUMPTION TRENDS – MILLION KG
+ 94 m kg
(+ 4.81%)
- 9 m kg
(- 0.46%)
+ 142 m kg
(+ 7.80%)
+ 25 m kg
(+ 1.40%)

16. Growth in world black CTC tea consumption increased.
BUT Production growth (6.01%) outpacing growth in demand (4.8%).
Comparing 2017 and 2018 Calendar Years.

17. ROLES AND LEVELS OF REGULATION.

18. ROLES AND LEVELS OF REGULATION
“rules and administrative codes issued by governmental agencies at all levels….. Although they are not laws, regulations have the force of law, since they are adopted under authority granted by statutes, and often include penalties for violations.” ( LEGISLATIVE REGULATION)

19. ROLES AND LEVELS OF REGULATION
“Self regulation occurs when an organization or industry regulates itself without external influence or intervention from external influences.

20. SELF REGULATION

21. ACHIEVING SELF REGULATION
Voluntary Standards organizations
Industry Code of Ethics
Industry Associations
Gentleman’s Agreements

22. ADVANTAGE OF SELF REGULATION
knowledge and expertise of all parties used more effectively;
flexible and adaptable;
lower regulatory burden on business;
more commitment, pride and loyalty within a profession or industry;
lower costs to the state;
the market can work better.

23. ROLE OF LEGISLATIVE REGULATION

24. LEGISLATIVE REGULATION
Acts of Parliament
MULTILATERAL TRADE AGREEMENTS
GLOBAL STATUTORY BODIES

25. WHY GOVERNMENTS USE REGULATIONS FOR KEY ECONOMIC SECTORS
To define common trading language for all actors in the supply chain.
To facilitate fair international Trade.
To avoid bad quality products in the markets.
To guide producers to meet market requirements.

26. WHY GOVERNMENTS USE REGULATIONS FOR KEY ECONOMIC SECTORS……
To build trust and market opportunities.
To encourage High Quality production.
Improve profitability.
Protect consumer interests.
Remove Technical Barriers to Trade

27. CHALLENGES IN SELF AND LEGISLATIVE REGULATION

28. CHALLENGES WITH SELF AND LEGISLATIVE REGULATION

29. NO BODY LIKES TO BE REGULATED

30. CHALLENGES ( SELF REGULATION) …..
Most Voluntary Standards Certifications will concentrate on the sections on the value chain where there interests are
Can be consumer driven and not producer driven or vise versa.
May not wholistically or objectively look into the interest of other sections of the value chain
Additional cost to the producers and consumers.

31. CHALLENGES ( LEGISLATIVE REGULATION) …..
Is viewed as beaurocratic and a barrier to conducting business.
Difficult to harmonize across the varied interests of different stakeholders including Government.

32. CHALLENGES ( LEGISLATIVE REGULATION) Kenya Case …..
The process of developing Regulations commenced upon the coming into effect of Crops Act in 2014.
Consultations with value chain players in the counties, other government agencies commenced after drafting
Several consultative meetings held with Counties under the umbrella of COG.
Conducted a Regulatory Impact Assessment on the draft Tea Regulations
Two validation forums were held one in Nairobi and another in Mombasa. Comments received from stakeholders have been analyzed and incorporated in the regulations as appropriate

33. KEY OBSERVATIONS

34. KEY OBSERVATIONS
The Regulatory space in the Tea Industry will continue to expand both at self regulatory and Legislative Regulation.
This is considering the expansion in both production, markets, number of players attracted into the industry, emphasis on diversification, changing consumer lifestyles and segments.

35. KEY OBSERVATIONS Self regulation helps get access to the consumer.
Legislative regulation helps you access the market.
The consumers are becoming more aware about quality and safety.

36. CONCLUSION

37. CONCLUSION
Regulations both at Industry ( Self regulatory) and Legislative level should adopt a bottom up approach by encompassing the stakeholder views.
This will enable both levels to assess whether the same is causing a facilitative role to Trading or introducing an NTBs that may also increase cost to segments in the value chain.

38. THE END