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President Yoweri Kaguta Museveni has launched a major review of Uganda’s tea sector, appointing senior presidential advisor Professor Ephraim Kamuntu to lead a nationwide investigation into whether tea should be categorised as a high-value or low-value crop.
The directive was made during a recent meeting with tea farmers, processors, and nursery bed operators from the Kigezi and Greater Bushenyi sub-regions, held at Bushenyi Main Stadium.
“Let me get advice so that I can confidently transfer tea from an extensive type of agriculture crop to an intensive one,” Museveni said.
“Somebody said you can get 1,000 kgs from one hectare of tea plantations. Others say if all things are done, you can get sh800,000. So, which is which now? The debt remains on your side to assure me how we categorise tea. Is it a high-value crop or a low-value crop? I will wait for a document through Prof. Kamuntu.”
To carry out this assignment, Prof. Kamuntu appointed Edson Tumusiime Batuuna, Arthur Babu Muguzi, and Robert Egiku to assist in preparing a comprehensive technical report that will guide government decision-making.
Speaking to New Vision, Prof. Kamuntu stressed the urgency of transforming Uganda’s agriculture.
“As a country, our dream is to get out of subsistence farming and into a money economy,” he said.
“Uganda must embrace tea farming as a strategic crop in order to generate consistent cash income for households, especially in rural areas.”
Sh312 billion bailout
President Museveni also announced a sh312 billion support package aimed at rescuing Uganda’s struggling tea sector. The funds will be used to clear outstanding debts, purchase fertilisers, support farmers and processors, and boost the competitiveness of Ugandan tea in global markets.
The President further directed the Ministry of Agriculture, Animal Industry and Fisheries to urgently draft new regulations to govern tea production, quality control, and marketing, intending to restore order in a sector plagued by low yields, price instability, and exploitative middlemen.
Despite improved auction prices at the Mombasa Tea Auction, where 15 Ugandan brands surpassed the $1 per kilogram mark in Sale 27 (July 2025), smallholder farmers continue to suffer. The average price remains at $0.96 per kilogram, and returns at the farm-gate level have collapsed.
Earlier this year, brands such as Kabale fetched up to $1.41 per kilogram, while Kyamuhunga and Bwindi sold at $1.29 and $1.25, respectively.
However, farmers report receiving only sh120–150 per kilogram of green leaf, down from Shs 250 last year, while the breakeven cost is approximately sh480 per kilogram.
“Many farmers are abandoning tea gardens. They can’t even afford to weed or fertilise their plantations,” said Edson Tumusiime Batuuna, a tea expert and farmer from Bushenyi.
“What’s the use if you are paid Shs 130 per kg and the cost of production is three times higher?”
Lack of policy framework
Uganda currently has over 49,000 hectares of land under tea cultivation, supporting more than 1.2 million people, most of them smallholder farmers. Yet the country still lacks a national tea policy. This vacuum has contributed to inconsistent pricing, quality issues, and weak farmer protections.
In recent months, pressure has mounted on government to establish a minimum farm-gate price, regulate the sector, and develop a comprehensive national tea policy.
While the announced bailout has been welcomed, experts warn that without structural reforms, the crisis will persist.
“If the funds are not accompanied by reform, transparency, and accountability, we’ll be back to the same crisis within a year,” cautioned Sula Nuwe, a tea farmer in Kyamuhunga. “We need clear pricing structures, quality standards, and policies that protect farmers.”
Professor Kamuntu and his team are expected to submit their final report to President Museveni in the coming months, a document that may shape the future of tea farming in Uganda for generations.
Experts tasked with Uganda’s tea sector review
Robert Egiku
Robert Egiku brings 25 years of extensive experience in the tea sector. He previously served as General Manager of Igara Tea Factory in Bushenyi district, where he oversaw major improvements in operations and productivity.
He is currently chief executive officer of the Uganda Tea Development Agency, leading national efforts to modernise and expand the tea industry.
Arthur Babu Muguzi
Arthur Babu Muguzi is a qualified accountant and tea farmer from Buhweju district. He works with the National Council for Higher Education (NCHE) as head of finance.
Edson Tumusiime Batuuna
Edson Tumusiime Batuuna is a seasoned tea farmer based in Bushenyi district. Actively involved in grassroots tea development, he is recognised for his in-depth knowledge of cultivation practices and his advocacy for farmer welfare and sector reforms.