The national government has pledged a Sh3.4 billion investment in the tea sector. The money will be disbursed to local factories through the Kenya Tea Development Agency (KTDA) to enhance value-addition and boost sales in the global market.
Additionally, in a move aimed at lowering production costs and powering global competitiveness for local producers, the government has also scrapped the 20 per cent tax previously imposed on tea packaging materials. This is expected to ease the cost of doing business.
Speaking on Friday in Kericho town, Kericho County, Agriculture Principal Secretary Paul Kiprono Ronoh said the government is keen on marketing Kenyan tea globally to increase farmers' earnings.
He noted that, for decades, Kenyan tea—despite being globally renowned for its quality—has been sold in bulk at the Mombasa Tea Auction, only to be repackaged abroad and branded as products from other countries.
“The 20 percent tax on packaging materials has been removed to reduce production costs and encourage factories and businesses to brand their tea locally before exporting,” added Dr Ronoh.
He said the government is also reviewing the Tea Act, 2020 to better respond to emerging market demands, particularly in light of global uncertainties that have persisted over the past three years.
Citing markets such as Dubai, Dr Ronoh said the practice of repackaging and selling Kenyan tea under foreign labels was denying local farmers the full benefits of their produce.
The announcement comes amid growing pressure from global partners. The Japanese Ambassador to Kenya, Mr Matsuura Hiroshi, recently urged the country to embrace value-addition in tea to fully exploit international market opportunities.
Speaking during a courtesy call on Bomet Governor Hillary Barchok last week, the envoy noted that, while Japan consumes large volumes of imported tea, Kenyan brands remain largely unrecognisable in retail outlets due to lack of branding.
“It’s difficult to identify Kenyan teas on shelves because they are not properly branded. There are huge untapped market opportunities in Japan,” said Mr Hiroshi.
Governor Barchok said his administration is working to help small-scale growers—especially those supplying to KTDA factories—add value to their tea and access markets across Japan’s 47 prefectures.
“Bomet County is exploring ways to brand locally produced tea before tapping into international markets. We produce some of the world’s best tea, yet our farmers haven’t fully benefited,” Prof Barchok said. “Kenya and Japan share a long-standing and deeply valued bilateral relationship. Bomet County has been a direct beneficiary of Japanese government support, particularly in the education sector.”
Kenya exports purple, green, and black teas to Japan. In 2024, the Asian country imported Kenyan tea worth $9.04 million (Sh1.2 billion), up from $7.45 million (Sh944 million) in 2023. Japanese consumers are increasingly seeking green and specialty teas, such as organic and health-focused blends.
Although Japan grows tea locally, its export levels remain low, prompting a heavy reliance on imports—especially green tea—from countries like China. Purple tea, prized for its medicinal value and popular in Japan, was introduced in Kenya by the Tea Research Institute (TRI) but remains in limited production.
KTDA is also shifting its focus to the production of orthodox teas, which have seen growing demand in markets such as Japan, Russia, China, Germany, Iran, France and the Middle East.
Kenya has traditionally relied on the export of black CTC (Cut, Tear, and Curl) tea to core markets including Pakistan, the UK, Egypt, Sudan, Kazakhstan, and Poland. However, new markets in China, India, Korea, Australia, Switzerland, Iran, South Africa, Ghana, Nigeria and Morocco are now being targeted.
Marketing agencies have been tasked with rethinking strategies and engaging international trade partners to explore these opportunities, especially in Africa, Asia, and the Arab world—regions previously overlooked.
In 2024, Kenya earned Sh215.21 billion from tea sales, with Sh181.69 billion generated from exports (both bulk and value-added). KTDA also disbursed a record Sh89.29 billion to 680,000 small-scale tea growers—up from Sh67.7 billion the previous year, thanks to improved production, favourable weather, and better market conditions.
Last year, the State intervened to clear a backlog of 100,000 metric tonnes of produce that had caused a two-year glut at the Mombasa Tea Auction. The oversupply had stemmed from minimum pricing requirements under the Tea Act.
