Gov’t unveils sweeping tea sector reforms to boost farmers’ earnings, global competitiveness

Agriculture Cabinet Secretary Mutahi Kagwe/Photo File

The government has unveiled far-reaching reforms aimed at transforming Kenya’s tea sector, raising smallholder farmers’ incomes and strengthening the country’s competitiveness in the global tea market.

Under the new reform programme, smallholder tea farmers could earn up to Ksh100 per kilogramme of green leaf by 2027, nearly double the current average returns.

Agriculture Cabinet Secretary Mutahi Kagwe said the reforms are designed to address long-standing concerns over low and uneven bonus payments while eliminating regional price disparities.

The strategy places strong emphasis on quality-based pricing, with reforms introducing blind tasting, scientific ranking of teas and enhanced training for tea makers.

According to CS Kagwe, factories will be encouraged to adopt modern processing technologies to improve consistency and meet premium international standards.

As part of the initiative, the government plans to establish a national Tea Quality Assurance Laboratory in Mombasa, which will provide independent testing, grading and certification services for Kenyan teas destined for export markets.

“Kenyans deserve a tea sector that rewards hard work, promotes fairness, and returns more value to farming communities,” Kagwe said.

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He added that the reforms are being implemented in collaboration with the Tea Board of Kenya, the Tea Research Foundation, factory management, and traders.

In a significant milestone for the industry, Kenya recently hosted its first dedicated Orthodox Tea Auction in Mombasa, signalling a shift from its traditional dominance in Crush, Tear and Curl (CTC) teas to higher-value specialty orthodox teas.

Industry players described the auction as a breakthrough, noting strong buyer interest and improved price absorption. Orthodox teas command premium prices and open access to niche global markets, particularly in Europe, Asia and the Middle East.

To support farmers further, the government has rolled out a Ksh2 billion fertiliser subsidy to reduce production costs and boost yields among smallholder growers.

Farmers have been urged to fully utilise the subsidised inputs to maximise output.

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The sector experts have also renewed calls for the modernisation of tea factories, emphasising the need for updated machinery, scientific testing methods, and improved processing standards to enhance auction performance.

Stakeholders believe the reforms — combining quality assurance, market diversification and value addition — could revitalise the tea industry, leading to higher farmer bonuses, stronger export earnings, and improved resilience in international markets.

As implementation unfolds over the coming years, attention will focus on whether the reforms deliver tangible benefits to the hundreds of thousands of tea farmers who underpin Kenya’s most valuable agricultural export.

By Philip Koech

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