Agriculture and Livestock Cabinet Secretary Mutahi Kagwe has reaffirmed the government’s commitment to resolving tea trading barriers through a whole-of-government approach. The strategy, he said, will be executed in collaboration with the Ministry of Investments, Trade, and Industry to enhance efficiency and market access for Kenyan tea.
On Friday, Kagwe was briefed by the Kenya Tea Development Agency (KTDA) Board on efforts to reduce the stockpile of unsold tea at the Mombasa auction. KTDA chairman Chege Kirundi and CEO Wilson Muthaura reported significant progress, with 97% of the initially unsold 106 million kilos successfully sold, leaving only 3.7 million kilos in stock.
The move to open new markets is part of ongoing efforts by KTDA and the Ministry of Agriculture to diversify revenue streams and improve farmers’ earnings. New target markets include India, Bulgaria, Georgia, the USA, Iraq, Turkey, Brazil, Russia, Iran, and Sudan. Expanding market access is expected to alleviate the challenges posed by surplus tea and stabilize prices in the long term.
CS Kagwe commended KTDA for implementing key reforms to boost operational efficiencies, mitigate climate change effects, and diversify investment opportunities. He highlighted the importance of marketing tea under the ‘Produce of Kenya’ brand to entrench recognition, segment markets, and maximize farmer returns through higher bonuses.
To ensure sustained profitability, Kagwe urged KTDA to prioritize farmers’ interests by partnering with financial institutions such as the Agricultural Finance Corporation (AFC) and local fertilizer manufacturers. These collaborations will provide farmers with affordable credit and agricultural inputs to enhance productivity and reduce costs.
In February, the government and KTDA introduced a series of measures aimed at improving tea prices and addressing the issue of unsold stocks. A consultative forum held in Kisumu brought together stakeholders, including factory directors from the West Rift, the Tea Board of Kenya, the East African Tea Trade Association (EATA), and tea buyers, to devise solutions to the surplus issue.
Last year, approximately 100 million kilos of tea remained unsold in KTDA warehouses. The government responded by suspending the minimum reserve price in August to stimulate demand and attract buyers. The ongoing reforms are expected to position Kenyan tea competitively in the global market while ensuring sustained profitability for farmers.
