A study of the effects of privatisation on Tea product and management in small scale tea sector (KTDA) in Kisii district. (a case of Kiamokama Tea factory)
Moranga, David Oyugi
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Liberalization of the smallholder tea sub sector in Kenya focuses on replacing a single-vertical integrated production-marketing system of providing services to farmers by a broad based system run by different institutions. The extents to which these systems have developed and there impacts on smallholder tea production are not yet clear. This paper analyses the provision of services to smallholder tea farmers under liberalization, performance of the organizations involved and impacts on tea production to help bridge this gap. Both secondary and primary data were used for the analysis. A new institutional economics framework whereby focus is on market coordination, exchange processes and transaction costs involved in provision of services is used. Main objective of the study was to investigate impact of privatisation on production of tea, operations of KTDA in small scale tea farming, at Kiamokama tea zone. The methodology of study was cross-sectional study where the researcher visited the various centres and using stratified sampling farmers were interviewed and the management. SPSS application software was used to analyse data where descriptive statistics involving, percentages was used to see trends of various activities. The justification of the project was aimed at establishing the depth at which liberalization of tea sector has impacted on operations ofKTDA and production of tea as this will be significant in knowing the problems facing farmers and KTDA So as to improve tea production, which is essential.