As Kenya celebrates a century of commercially growing tea, the focus shifts from exporting raw tea to enhancing value addition and diversifying the product range to meet changing market demands. This transition is critical for maintaining Kenya’s competitive edge in the global tea market and increasing earnings from this vital sector, which has been a cornerstone of the country’s economy.
Historical Context
Kenya’s tea industry has undergone a remarkable transformation over the past century. Initially, tea was exported to just one country, but it has since expanded to more than 90 global destinations. Agriculture and Livestock Development Cabinet Secretary (CS) Andrew Karanja highlighted this impressive journey during the launch of the Kenya tea industry centenary celebrations in Nairobi. He emphasized the potential of tea not just as a commodity but as a significant economic driver, contributing to the livelihoods of over six million people along its value chain.
In 2024, the industry is expected to earn Sh180 billion from exports, up from Sh138 billion the previous year. The current year’s performance shows promise, with export earnings exceeding last year’s figures by Sh21 billion as of August, standing at Sh127 billion. This growth is indicative of the tea industry’s resilience and adaptability in a competitive global market.
Shifting Focus to Value Addition
CS Karanja articulated the government’s vision to transition from exporting raw tea to offering value-added products. This shift is not merely about improving profit margins; it is also about catering to evolving consumer preferences. Karanja urged stakeholders to position tea as a trendy beverage, particularly for the youth, by providing a variety of flavors and forms. By doing so, tea can be marketed as an “any time” beverage, akin to coffee, thereby increasing its consumption among younger demographics.
This strategic pivot towards value addition aligns with the Bottom-Up Economic Transformation Agenda (BETA), which seeks to enhance the economic landscape for all Kenyans. The government recognizes the crucial role of the tea industry in driving socio-economic development and aims to ensure that the benefits of tea production extend throughout the value chain.
Enhancing Export Performance
The government’s commitment to enhancing the tea industry’s export performance is evident in its plans for trade missions to potential markets. Karanja highlighted the need to attract more international buyers by focusing on quality and sustainability. With tea production projected to exceed 600 million kilograms in 2024, ensuring high-quality production will be paramount.
The Tea Board of Kenya (TBK) is also playing a pivotal role in supporting this vision. TBK chairman Jacob Kahiu noted that the volume of unsold tea at the Mombasa auction has significantly decreased, thanks to the suspension of minimum price directives. This strategic decision has led to a reduction in unsold tea from a high of 100 million kilograms in 2023 to below 15 million kilograms in 2024, a sign of a healthier market.
Engaging the Youth
One of the critical aspects of the centenary celebrations is the emphasis on engaging the youth. TBK CEO Willy Mutai underscored the importance of integrating young people into the tea value chain—from production to marketing and consumption. Given that tea is often viewed as a traditional drink, there is an urgent need to modernize its appeal and accessibility to younger audiences.
The engagement strategy will involve leveraging various media channels for awareness, knowledge transfer, and capacity building. By capitalizing on the social fabric of tea-growing regions, stakeholders can create opportunities for youth involvement in the industry, ensuring that the next generation of Kenyans is equipped to continue the legacy of tea production.
Sustainability and Innovation
As the centenary celebrations unfold, there is a strong focus on sustainability and innovation within the tea sector. Karanja emphasized the importance of operationalizing the Tea Act of 2020, which aims to create a regulatory environment that promotes sustainable practices and enhances industry performance. Several regulations are nearing completion, paving the way for reforms that will ensure the sustainability of the tea industry.
Sustainability is not only a trend but a necessity in today’s market, where consumers are increasingly conscious of the environmental impact of their purchases. By adopting sustainable farming practices, Kenyan tea can position itself as a premium product in international markets, appealing to eco-conscious consumers.
Future Prospects
Looking ahead, the future of Kenya’s tea industry appears promising. With plans for continued support for farmers, including subsidized fertilizers, the government aims to enhance the quality and quantity of tea production. The commitment to value addition and diversification will open new avenues for growth and profitability in the sector.
As the tea industry marks this significant milestone, it stands at a crossroads. The next century presents both challenges and opportunities. By embracing value addition, engaging the youth, and focusing on sustainability, Kenya can not only celebrate its rich history in tea production but also set the stage for a vibrant and prosperous future in the global tea market.
Conclusion
Kenya’s tea industry has come a long way in 100 years, transforming from a small-scale exporter to a major player in the global market. The government’s vision for the next century focuses on value addition, diversification, and youth engagement, ensuring that the benefits of tea production are felt by all. As the industry adapts to changing market demands and embraces sustainable practices, the potential for growth and innovation remains vast. With concerted efforts from all stakeholders, Kenya’s tea industry is poised to thrive in the years to come.
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