Kenya’s tea sector is undergoing a significant strategic shift as the government focuses on farmer welfare and value addition. At the opening of the 7th Africa Tea Convention, Agriculture Cabinet Secretary Mutahi Kagwe emphasized that the future of the industry depends on the producers who generate the crop. He noted that small-scale growers form the backbone of Kenya’s tea production, and their prosperity is directly tied to the broader economy.
Kagwe addressed the current state of the market, highlighting the potential of emerging trade partners. He identified Pakistan as a leading business partner and welcomed China’s decision to zero-rate duties on tea imports. The CS described China as a major market with significant potential for Kenyan tea in different forms. However, he stressed that simply accessing new markets is insufficient. Kagwe stated that selling bulk tea to Europe without retaining the processing jobs is illogical. He called for Africa to retain more value from commodities through local processing, manufacturing, and branding.
To achieve this, the government is pushing for aggressive diversification beyond traditional destinations. Kagwe urged the adoption of modern machinery and technology, alongside the development of diversified tea varieties. He encouraged partnerships that allow farmers to work with processors to create higher-quality, market-specific products. The strategy also leverages the government’s land commercialisation initiative to expand production while strengthening value-chain partnerships to attract investment and create employment.
Investment in Modernization
Kenya’s tea strategy aims to move beyond mere production to smarter processing and stronger branding. The goal is to ensure greater value reaches farmers. Earlier this month, Agriculture Principal Secretary Paul Ronoh announced a financial commitment to support these goals. The government allocated KES10 billion to modernise smallholder tea factories, expand value addition, and mechanise operations. This investment is designed to improve farmer earnings directly.
Kenya earned KES55 billion from tea exports during the first six months of 2026. Auction records show Kenyan tea fetched an average of $2.28 per kilogramme across the first 24 sales of the year. The government believes that shifting focus to value addition and local processing will increase these figures by keeping more economic activity within the country. The three-day convention brought together more than 800 delegates from 26 tea-growing and consuming markets to discuss these critical changes.