The chairman of Kiru Tea Factory Chege Kirundi has said production and labour costs are the main challenges facing the tea industry. Kirundi said the cost of energy, fertilizer and spare parts had gone up.

Speaking during the annual general meeting in Murang'a town yesterday, the chairman said the ever increasing competition coupled with the cost of production had made tea production expensive.

He said despite these challenges, the company paid Sh741.4 million to farmers compared to Sh655.3 million in 2011.