The government has launched a Sh3.5 billion reform package for Kenya’s tea industry following an audit that exposed deep weaknesses in governance, financial management and operational efficiency across dozens of processing plants. The programme is designed to restore farmer confidence and raise earnings by modernizing 19 factories, lowering fertilizer costs and strengthening irrigation, with a clear focus on timely payments and higher returns.
Announcing the measures after receiving the Tea Board of Kenya (TBK) audit, Agriculture Principal Secretary Paul Ronoh said the reforms are targeted at the core drivers of value leakage within the sector.
“These reforms are about putting money back into the pockets of farmers. By reducing fertilizer costs, improving irrigation and modernizing factories, we are laying the foundation for timely payments and improved earnings,” he said.
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The initial phase prioritizes upgrading factory equipment to boost productivity, cut operational losses and improve payment cycles to growers. Lowering fertilizer costs, one of the biggest line items for tea producers, forms a key pillar of the plan, alongside investments in irrigation systems to cushion production against increasingly erratic weather patterns and protect leaf quality throughout the year.
Ronoh linked the intervention to troubling findings from an audit covering 71 tea factories, which flagged critical gaps in governance, financial controls and operational discipline.
The report raised concerns about the sector’s sustainability and the welfare of farmers amid delayed payments, rising debt burdens and inefficiencies eroding payouts. “The report underscores the need for transparency, accountability and efficiency across factories,” he said.
Ordered in October after widespread complaints from farmers over delayed remittances, escalating costs and alleged irregularities in factory loan management, the TBK review assessed financial systems, procurement practices, loan obligations and board oversight. The audit was commissioned to identify weak spots in management and provide a corrective roadmap that can be implemented with urgency and consistency.
Ronoh said the findings will inform reforms beyond the 19 factories targeted in the first phase, with governance upgrades expected to move in tandem with operational and financial interventions across the board. “We will be firm on accountability and transparency while supporting factories to become more efficient and financially stable,” he said, adding that rebuilding farmer trust remains the top priority.
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The government is also pushing for stronger oversight frameworks to ensure that institutional weaknesses do not translate into delayed payments or diminished earnings. Ronoh stressed that poor governance and weak financial discipline have carried a direct cost for farmers, and that reforms must address the structural drivers of inefficiency.
Tea remains one of Kenya’s leading foreign exchange earners and a vital source of income for millions of smallholder farmers across the Rift Valley, Central and Western regions. By tackling the high-cost base and operational bottlenecks while enforcing better governance, the state hopes to reset the industry’s trajectory, moving from reactive firefighting to a performance‑driven model that reliably converts production into fair, timely returns for growers.
By Masaki Enock
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