Government Pledges Tea Sector Reforms

In Summary

• Agriculture PS Dr. Paul Rono announces KSh 3.7 billion to boost tea factory efficiency.
• Plans to amend Tea Act 2020 to allow direct sales to international markets.
• Reforms aim to cut intermediaries, enhance transparency, and protect Kenyan tea brand.
• Removal of packaging taxes to promote local value addition and higher export prices.
• Tea sector supports 650,000 farmers, contributing 23% to Kenya’s foreign exchange.
• Farmers urged to register for subsidized fertilizers at chiefs’ offices.

The Kenyan government is committed to revitalizing the tea sector to ensure higher returns for farmers through enhanced value addition and direct international sales, Agriculture Principal Secretary Dr. Paul Rono announced on August 2, 2025. Speaking at Samoei Boys Secondary School in Nandi Hills, Nandi East Sub-County, during a prayer day for 2025 KCSE candidates, Rono revealed plans to inject KSh 3.7 billion into 19 local tea factories to improve efficiency and boost export prices.

Rono disclosed that amendments to the Tea Act 2020 are underway to enable direct sales from factories to international buyers, bypassing intermediaries. “This will liberalize the tea industry, promote transparency, and ensure farmers benefit from competitive prices while maintaining the Kenyan brand globally,” he said. The tea sector, supporting over 650,000 smallholder farmers, contributed KSh 215 billion to Kenya’s economy in 2024, accounting for 23% of foreign exchange earnings.

To further support value addition, the government has removed excise duties on tea packaging materials, enabling factories to process and brand tea locally. “We will package our tea under factory brands to attract investors and increase prices,” Rono noted, urging National Assembly members to expedite the Tea Bill amendments. The move aims to raise value-added tea exports from 5% to 50% by 2027, potentially increasing export value to over USD 1.85 billion.

Farmer Mary Wanjiku from Kericho welcomed the reforms but emphasized the need for timely payments. “Direct sales sound promising, but factories must pay us promptly to reinvest in our farms,” she said. Challenges like compliance with EU regulations and climate change impacts persist, with the government promoting drought-resistant tea varieties and digital marketing to address them.

Rono also urged farmers to register for subsidized fertilizers at chiefs’ offices, facilitated by National Government Administrative Officers (NGAO). “This ensures access to affordable inputs at National Cereals and Produce Board depots, boosting yields,” he said. The initiative aligns with broader efforts to enhance food security and farmer incomes.

Stakeholder consultations are ongoing, with the Tea Bill amendments expected to be finalized by early 2026, positioning Kenya’s tea sector for greater competitiveness and farmer prosperity.