CS Kagwe launches Orthodox Tea Trading Window to boost export and production

Agriculture and Livestock Development Cabinet Secretary, (CS)Mutahi Kagwe has officially launched the Orthodox Tea Trading Window at the Mombasa Tea Auction, signifying the Government’s commitment to enhancing the production and export of specialty teas.

The 2,925 packages, which are equivalent to 91,798 kilos of Orthodox tea is the first of many that will see tea farmers fetch higher prices for their produce as they seek to satisfy the growing global demand for specialty teas.

Speaking during the event on September 24, the CS said the launch of the specialty tea auction window was pivotal to raising Kenya’s profile in the global specialty markets, not only as a producer but also as an exporter.

“Kenya has an excellent profile for being a lead producer of CTC teas. But it is high time we diversified our markets by increasing our capacity to produce orthodox teas in order to capture the ever-changing global market and raising demand for specialty teas which will enable our farmers to tap into the premium market. This diversification will mean more money in their pockets, greater resilience and new revenue streams as consumers,” he said.

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The introduction of Orthodox Tea Auction provides farmers and producers with a structured, transparent marketplace that expands their reach beyond traditional buyers.

For 2024, KTDA Holdings Limited, Orthodox prices ranged between USD 3.40 and USD 4.16 per Kg, with an average of USD 3.70 per Kg. Compare this to the current average of just USD 2.28 per Kg for bulk CTC teas at the Mombasa Auction.

Last year, total orthodox production was 7.51M Kgs, of which 5M Kgs were exported. This was lower than the 12.34M Kgs produced in 2023, largely due to challenges with the Iran market.

However, the CS said the Ministry was in consultations with the Iranian government to restore teas business between the two nations.

Kagwe added that the Tea Board of Kenya, (TBK) has licensed 22 Orthodox manufacturers and hoped to double this to 42 by 2027.

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“Our target is ambitious but achievable. We aim to grow installed Orthodox capacity from 15 million kilos in 2024 to 200 million kilos by 2030,” he added.

He further said that TBK has also established a Tea Quality Assurance Laboratory in Mombasa to offer real-time quality advisory, product testing, and food-safety certification.

“To increase transparency, improve farmer returns, and ensure Kenya remains globally competitive, the Mombasa Tea Auction is going online internationally.” He said

Kagwe reiterate that the digital transformation will allow buyers from across the world to participate in real time, enhance price discovery, reduce cartels, and firmly position Kenya as a modern, efficient tea-trading hub.

By Juma Ndigo

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