The government is seeking to raise Sh4.5 billion to modernize tea processing factories and strengthen value-addition infrastructure in a move aimed at increasing farmers’ earnings, reducing production costs and enhancing Kenya’s competitiveness in the global tea market.
The programme, targeting ageing factories and limited value-addition capacity within the smallholder tea subsector, was unveiled during this year’s International Tea Day celebrations held at Momul Tea Factory in Kericho County.
Speaking during the event, Principal Secretary for Agriculture Dr. Paul Rono said the government had already secured Sh1 billion for the initiative, with efforts underway through the sector working group and budget committee to mobilize the remaining Sh3.5 billion.
Rono said the investment would focus on modernizing tea factories, improving operational efficiency, reducing processing costs and strengthening value addition in one of Kenya’s leading foreign exchange earning sectors.
“The sector working group through the budget committee is working on the Sh4.5 billion programme. Already, Sh1 billion has been secured, and efforts are ongoing to mobilize the remaining funds so that we can upgrade and improve tea value addition infrastructure for the benefit of farmers,” said Dr. Rono.
Kenya remains among the world’s top exporters of black tea, with the crop playing a significant role in foreign exchange earnings, employment creation and rural livelihoods.
Millions of Kenyans depend on tea directly and indirectly, particularly in Rift Valley, Central Kenya and parts of Western Kenya where smallholder farming dominates production.
Over the years, the tea industry has remained a key pillar of the country’s agricultural economy, supporting jobs across farming, transportation, auctioning, warehousing and processing.
Despite its importance, the sector has continued to face challenges including rising production costs, aging processing equipment, fluctuating global prices and limited value addition, factors that have affected farmers’ returns.
Dr. Rono said the government was prioritizing reforms aimed at safeguarding tea quality while improving processing efficiency and increasing farmers’ earnings through modernization and diversification.
According to the PS, part of the planned funding would go towards rehabilitating older tea factories whose outdated machinery has contributed to inefficiencies and high operational costs.
He emphasized that strengthening value addition was critical if Kenya was to maximize earnings from tea exports instead of relying heavily on bulk tea sales.
“Many small tea factories are unable to put up modern value addition infrastructure on their own. Through this programme, we want to create stronger support systems that will help farmers benefit more from their produce,” he stated.
Rono further said the government was keen on strengthening tea sector institutions and improving infrastructure supporting smallholder factories across tea-growing regions.
He noted that reforms being implemented by the Ministry of Agriculture were intended to ensure sustainability in the sector while cushioning farmers from market shocks and escalating production costs.
The PS also commended tea farmers for maintaining quality standards that have continued to position Kenyan tea competitively in international markets despite growing global competition.
“When we started discussing quality concerns some years back, there were huge disparities in standards, but farmers have worked hard to maintain and improve quality. That is why Kenyan tea continues to command respect globally,” he added.
At the same time, Dr. Rono challenged hotels and hospitality establishments to use International Tea Day celebrations to promote local tea consumption and support Kenyan tea products.
He said increasing domestic tea consumption would complement export markets and create additional opportunities for farmers and processors.
“We want every hotel and hospitality facility to proudly serve Kenyan tea and showcase the quality that our farmers continue to produce,” he said.
Kericho Senator Aaron Cheruiyot welcomed the proposed modernization programme, saying investment in processing infrastructure would improve the sustainability and profitability of the tea sector.
The senator said reforms introduced in recent years had already started yielding positive results, particularly through fertilizer subsidies, improved governance structures and reforms in tea payment systems.
“That programme has changed the lives of tea farmers. Many farmers who previously struggled to access fertilizer can now maintain their farms properly and improve production,” he said.
Cheruiyot noted that improved access to fertilizer had contributed to increased tea production in several regions, describing it as “a good problem” that now required stronger market systems and enhanced value addition to absorb the higher output.
He also praised reforms undertaken within the Tea Board of Kenya and the broader tea subsector, saying they had helped restore order and improve coordination within the industry.
The senator recalled that reforms initiated in recent years had addressed longstanding challenges including delayed farmer payments and governance disputes.
According to Cheruiyot, tea farmers previously faced uncertainty due to delayed monthly earnings, but reforms in management and payment systems had improved efficiency and predictability.
“Farmers today have greater confidence because payment timelines have improved and sector management has become more organized,” he stated.
The senator further called for another national tea stakeholders’ conference to assess progress made since the 2023 tea reforms conference held in Kericho.
He said continued engagement between the government, tea factories, marketers, buyers and farmers was necessary to address emerging challenges within the sector.
Cheruiyot also lauded Momul Tea Factory for diversifying beyond tea farming through investments in avocado farming, beekeeping and bottled water production.
He said diversification was increasingly important for tea factories seeking alternative revenue streams and reducing overreliance on tea earnings.
“Factories that diversify are creating additional revenue for farmers and improving long-term sustainability,” he said.
Leaders attending the celebrations said the proposed Sh4.5 billion modernization programme would help revitalize the tea sector by lowering production costs, improving efficiency and increasing farmer returns.
They added that a stronger tea sector would stimulate rural economies through job creation, higher household incomes and expanded business opportunities in tea-growing counties.
The celebrations brought together tea stakeholders, county leaders, factory directors, buyers, exporters, private sector players and farmers from across the country to mark the contribution of tea farming to Kenya’s economy and livelihoods.
As the country marked International Tea Day, leaders expressed optimism that ongoing reforms, increased government support and strategic investments in modernization and value addition would secure a more sustainable and profitable future for tea farmers.
