Sh10 Billion Government Plan Targets Modernised Tea Factories and Higher Farmer Earnings

The government has committed Sh10 billion to modernise smallholder tea factories, expand local value addition and improve the incomes of tea farmers across Kenya.

Agriculture Principal Secretary Paul Ronoh said Sh4.5 billion has already been released under the government support programme, with Sh1 billion allocated to factory modernisation and Sh3.5 billion used to support fertiliser subsidies.

Ronoh spoke at the Port of Mombasa during the flagging off of 30,000 metric tonnes of fertiliser for farmers affiliated with the Kenya Tea Development Agency (KTDA). The consignment is part of 99,000 metric tonnes scheduled for distribution across tea-growing regions ahead of the rains.

The PS said earlier delivery would help farmers apply fertiliser at the right time and support tea productivity. Last year, some supplies reached farmers as late as December, limiting the benefits of timely application.

Tea farmers will access the subsidised fertiliser at Sh2,000 per 50kg bag, matching the price under the national fertiliser subsidy programme. KTDA Chairman Enos Njeru said the consignment is expected to produce about 1.9 million 50kg bags of NPK 26:5:5 fertiliser for distribution.

The fertiliser will be transported from Mombasa to Nairobi by rail before being moved by road to tea factories in producing areas. Farmers will collect their allocations through their respective factories.

Ronoh said the government is also pursuing reforms aimed at improving tea marketing, factory efficiency and returns to growers. He pointed to recent auction performance as an indication that the sector could deliver stronger earnings following expanded marketing efforts by the Tea Board of Kenya.

He said the government would release the remaining funds under the support programme to strengthen KTDA’s financial position and enable it to maintain efficient operations.

The government is also seeking to increase the amount of Kenyan tea that is packaged locally rather than exported in bulk for processing and packaging in foreign markets. Ronoh said tax incentives on packaging materials were intended to attract investors and create jobs while retaining more value within Kenya.

Quality remains a major concern as the country seeks better prices in international markets. Ronoh urged farmers to harvest mature leaves and follow recommended production practices, warning that poor-quality green leaf can undermine returns across the value chain.

He also announced that a scientific tea testing centre had completed its pilot phase and would soon become fully operational. The facility is expected to strengthen tea quality testing and certification, addressing concerns that have affected the sector over the years.

KTDA said farmers would receive guidance from extension officers and agency officials on appropriate fertiliser application rates and timing. Ronoh maintained that combining timely farm inputs, modernised factories, stronger quality controls and greater value addition would be critical to improving the competitiveness of Kenya’s tea industry.