Kenya Lures Chinese Investors to Build Tea Processing Sector in the Country

Tea Board of Kenya Chief Executive Officer Willy Mutai has outlined a renewed strategy to attract Chinese investment in Kenya’s tea processing, packaging, and manufacturing segments, as the country seeks to increase value addition and reduce reliance on bulk tea exports.

Speaking at the China-Africa Forum on Agritech and Industrial Cooperation in Nairobi, Mutai said Kenya is shifting its focus toward building a stronger industrial base in the tea sector so that more of the product is processed locally before being exported. He noted that improved trade ties with China, including tariff-free access for Kenyan tea, should be matched with deeper investment in local production capacity.

“We are encouraging more Chinese investors to apply for export licences and invest in Kenya. Kenya is open for any investor to buy, process and export tea,” he said.

The push comes against the backdrop of Kenya’s long-standing export model, in which most tea is shipped in bulk and later processed, branded, and packaged in overseas markets. This structure has often limited the country’s share of final export earnings despite its strong production capacity.

Officials now want to change that by expanding domestic processing facilities and encouraging investors to set up packaging and manufacturing plants within the country. The aim is to strengthen Kenya’s role beyond production and move it further up the global tea value chain.

Chinese participation in the sector is already growing. According to the Tea Board, at least four Chinese companies are currently licensed to package and export tea directly from Kenya. In addition, several factories have introduced Chinese tea-processing technologies designed to align with demand in the Chinese market.

Mutai said three firms are already using such technology, with more investments expected as cooperation between the two countries deepens. He described this as part of a broader trend of industrial collaboration in agro-processing.

The initiative also aligns with Kenya’s export diversification agenda, which is seeking to reduce dependence on traditional markets such as Pakistan, Egypt, the United Kingdom, and Sudan. China’s expanded tariff-free access for African products has opened up new opportunities for Kenyan tea exporters targeting Asia’s growing consumer base.

To support local value addition, the government has eliminated import duties on packaging materials used in tea production, aiming to reduce operational costs and attract more processors into the country. There is also growing interest in developing local manufacturing capacity for packaging materials and tea-processing equipment, much of which is currently imported.

Chinese Ambassador to Kenya Guo Haiyan described China’s broader market access for African goods as a major opportunity, terming it a “golden opportunity” for agricultural exporters to scale up investment and production.

In addition, Kenya and China are exploring a digital tea trading platform that would connect producers and buyers directly, streamline transactions, and improve efficiency in the tea trade.

Overall, the developments point to Kenya’s effort to reposition its tea industry toward greater industrialisation and higher value capture within the local economy.