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New Tea Bill seeks to end raw exports, introduce domestic auction system

The proposed legislation seeks to regulate tea production, processing and marketing, strengthen quality standards and protect farmers and other players across the tea value chain.

Igara County West MP Cohen Amanya, has secured Parliament’s permission to introduce the National Tea Bill seeking mandatory value addition and a domestic auction system for Uganda’s tea industry.

In Summary: Parliament has granted Igara County West MP Cohen Amanya permission to introduce the National Tea Bill, 2026, which seeks to make value addition compulsory for tea exports, establish a domestic auction system and strengthen regulation of Uganda’s tea industry. The proposed legislation also introduces licensing requirements, quality inspections and penalties for exporters who fail to comply.

Kampala, Uganda: Parliament has granted Igara County West MP Cohen Amanya Kyampene permission to introduce the National Tea Bill, which seeks to make value addition compulsory for tea exports and establish a domestic auction system to improve the regulation and competitiveness of Uganda’s tea industry.

Amanya secured leave of the House during a plenary sitting on Wednesday, October 28, 2026, chaired by Deputy Speaker Thomas Tayebwa.

The proposed legislation seeks to regulate tea production, processing and marketing, strengthen quality standards and protect farmers and other players across the tea value chain.

Moving the motion, Amanya said the absence of a dedicated legal framework had undermined the industry’s competitiveness and left farmers vulnerable to unstable prices. “The object of the Bill is to transition the tea industry in Uganda into a structured and regulated sub-sector that protects tea farmers and other tea value chain actors,” Amanya told Parliament.

According to the MP, about 90 per cent of Uganda’s tea production is sold through the Mombasa Tea Auction, leaving the industry heavily dependent on a single marketing channel.

He also cited low prices for poor- and medium-quality tea, which he said can fetch less than $1 per kilogramme, alongside high fertiliser costs, pests and diseases, and factories operating below capacity.

Bill proposes mandatory value addition

A central provision of the proposed law is a requirement for tea buyers and exporters to add value to tea produced or purchased in Uganda before it is sold or exported.

The proposed activities include packaging, blending, grading, flavouring, branding, labelling and processing tea into specialty products. “A tea buyer or tea exporter shall add value to tea produced, purchased or intended for export from Uganda prior to sale or export,” Amanya said.

Under the proposal, buyers and exporters would be required to obtain a certificate from the ministry responsible for agriculture confirming compliance before exporting tea. Those who fail to comply could face suspension or cancellation of licences, seizure of consignments and a fine equivalent to the value of tea exported without the required value addition.

The proposed legislation also seeks to establish a domestic tea auction through which tea processed and manufactured in Uganda for export would be offered for sale.

Amanya’s proposal is intended to create a more structured marketing system while encouraging greater processing and value addition within Uganda.

Licensing and quality controls

The Bill proposes registration and licensing requirements for participants across the tea value chain, alongside stronger oversight of production, processing, storage and marketing.

Tea importers would be required to obtain a licence, demonstrate that the intended variety or grade is unavailable locally or through the proposed auction, and secure a pre-import verification certificate from the country of origin.

Importers would also pay a tea levy to be prescribed by the minister responsible for agriculture after consultation with the minister responsible for finance.

On quality assurance, the proposed law provides for continuous inspection of tea farms, factories, warehouses and storage facilities to ensure compliance with hygiene, quality and safety standards.

The ministry responsible for agriculture would regulate, promote and oversee the sector, while district authorities would supervise specified activities, including green leaf handling, pest control and post-harvest practices.

MP cites potential to increase tea earnings

Mwenge Central County MP Methuselah Kasukaali seconded the motion, arguing that the absence of a specific law had contributed to poor-quality tea and lower earnings for Uganda compared with neighbouring countries.

He cited poor farming practices and the admission of low-quality tea leaves into factories as challenges affecting the sector. “The tea sector has faced poor on farm practices, unregulated manufacturing including admitting poor quality tea leaves into the factories, as a result the sector has been fetching low prices such that in 2024 we earned US$54 million yet with improved quality it can be increased to US$120 million,” Kasukaali said.

The figures were presented by the MP as an illustration of the sector’s potential under improved quality standards. The proposed increase to $120 million represents his assessment of what could be achieved, rather than a confirmed revenue forecast.

State Minister for Agriculture, Animal Industry and Fisheries (Agriculture) Hon Desire Muhooza told Parliament that the ministry was consulting stakeholders in the tea industry. She said the process had been delayed by the rationalisation of the National Agricultural Advisory Services (NAADS).

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