Kenya’s Tea Sector Sees Boost in Production Amid Strategic Changes

Principal Secretary Kipronoh Ronoh of the State Department for Agriculture has announced a notable increase in tea production for the Financial Year 2023/2024. Speaking at the East Africa Tea Trade Association (EATTA) meeting in Mombasa, Ronoh highlighted that the surge in tea production has led to a substantial rise in unsold tea stocks held by smallholder tea factories, managed by the Kenya Tea Development Agency (KTDA).

The increased production, attributed to the previous year’s fertilizer subsidy, favorable rainfall, and a growing number of tea farmers, has resulted in an accumulation of approximately 100 million kilograms of unsold tea. This surplus is expected to be cleared within the next month through collaborative efforts with tea brokers and buyers, as Ronoh confirmed. “We have agreed with tea brokers and buyers to prioritize local purchases to clear the remaining stock,” he stated.

Ronoh addressed misinformation that had been circulating regarding tea stocks. Contrary to earlier reports suggesting KTDA held 400 million kilograms, he clarified that the accurate figure is 100 million kilograms. He urged tea traders to avoid spreading unverified information, which could potentially destabilize the market.

To address the challenges facing the tea sector, Ronoh outlined several strategic measures. The government plans to amend the Tea Act, 2020, to permit Direct Sales Overseas (DSOs) for all tea producers, including KTDA-managed factories. This move aims to enhance market access and streamline tea sales.

Additionally, the government is focusing on improving tea quality standards. The new requirements mandate that all tea producers achieve a minimum quality standard of 65 percent. This initiative is part of a broader strategy to reverse the declining quality of Kenyan tea.

Another key development is the push for diversification in tea production. Producers are encouraged to shift from the traditional black CTC tea to include orthodox tea and other varieties in the auction. This diversification is expected to improve the competitiveness of Kenyan tea in international markets.

In terms of value addition, the government aims to increase the current value addition rate from 5 percent to over 22 percent. To support this goal, the government will facilitate the establishment of a Common Use Facility (CUF) for tea value addition and offer fiscal incentives such as tax exemptions.

Marketing efforts will also be strengthened through Memorandums of Understanding (MoUs) and bilateral agreements with key international markets. This strategy is designed to enhance the global market presence of Kenyan tea.

Ronoh also commended tea farmers for their cooperation during the recent elections for new tea directors. The newly appointed directors have already taken office and participated in workshops to discuss future directions for the tea sector. A list of these appointees will be made available to the public soon.

The one-day EATTA meeting brought together essential stakeholders, including KTDA, EATTA, tea buyers, and brokers, to address the current issues and plan for the future of Kenya’s tea industry. With these strategic changes and collaborative efforts, the sector is poised for significant improvements in production efficiency, quality, and market reach.