With the ban on tea hawking and a fresh leadership team at the helm of the Kenya Tea Development Agency (KTDA), Kenya’s tea industry looks set for a promising future.
Tea farmers now have renewed hope following the government’s commitment to revitalizing the sector. A major boost comes from the allocation of Kshs 1 billion to establish a value-addition facility in Nairobi, similar to the existing one in Kericho. Additionally, the removal of Value Added Tax (VAT) on locally packaged teas is expected to enhance farmer earnings by making local tea more competitive.
The new KTDA leadership, led by Chairman Chege Kirundi, has outlined a strategic plan set for launch in July. This blueprint aims to address climate change challenges, enhance value addition, and expand market opportunities, particularly within Africa. Key reforms include revising the allocation of profits from KTDA’s subsidiaries and reducing input costs to boost farmer incomes.
Climate change remains a critical challenge, with declining tea yields and quality, an ageing farming population, and shrinking acreage due to land subdivision and competition from the real estate sector. Despite these challenges, KTDA and its 680,000 small-scale farmers continue to contribute 60% of Kenya’s tea production.
With boardroom conflicts now resolved, KTDA’s leadership has established a stable and cooperative relationship with the government. Farmers are optimistic about the industry’s trajectory but stress the need for politics to remain separate from tea sector management to ensure continued growth and stability. Full implementation of the hawking ban is seen as essential to safeguarding industry gains.
As global demand for tea grows and local consumption increases, a corresponding rise in returns is expected, ensuring the sector’s continued profitability. Tea remains a crucial pillar of Kenya’s economy, supporting thousands of farmers and players across the value chain. Export earnings play a key role in stabilizing the national currency and strengthening the overall economy.
The progress made in the sector is largely attributed to farmers’ commitment to maintaining high-quality standards, which ensure Kenyan tea fetches premium prices. However, unchecked politicization threatens to undo these gains, causing instability in certain regions, particularly west of the Rift Valley. Some policy decisions have also negatively impacted the industry, making an urgent reassessment necessary.
A key concern has been the unregulated licensing of private tea factories without designated catchment areas, which has led to competition for green leaf between KTDA and private firms. This situation has contributed to declining quality standards, threatening Kenya’s reputation in the global market. The introduction of a reserve price policy—applied exclusively to KTDA factories—has further complicated matters, as private factories are not subject to these regulations and can buy green leaf at lower prices.
The hawking menace is particularly detrimental, with private factory trucks often seen purchasing green leaf directly from KTDA-affiliated buying centres. This has resulted in some KTDA factories receiving inadequate green leaf supplies, increasing operational costs and reducing farmer earnings. If left unchecked, these factories risk closure, endangering the livelihoods of farmers and workers.
Several KTDA factories in the West Rift Valley are already struggling financially, with reports of unpaid workers and unreliable markets for farmers. Concerns have been raised that powerful political figures are establishing private tea factories in a move that could weaken KTDA’s presence in the region. The alleged collusion between political elites and tea brokers has led to fears that the West Rift KTDA factories are being systematically undermined for private gain, leaving small-scale farmers as the primary victims.
The disparity between KTDA factories in the West and East Rift further underscores the crisis, with Western-region tea fetching lower prices despite being of similar or even superior quality. Some argue that KTDA directors in the West have been sidelined, serving political interests rather than advocating for farmers and workers.
Without urgent intervention, there is a growing risk that KTDA factories in the region could collapse, leaving thousands of farmers and employees without a livelihood. Addressing these issues through stronger policies, strict enforcement of hawking bans, and ensuring fair competition is crucial for the long-term sustainability of Kenya’s tea industry.
