Kenya is accelerating efforts to diversify its tea export markets and expand value-added tea products as the government moves to shield the sector from global price volatility and overreliance on traditional buyers.
Agriculture Cabinet Secretary Mutahi Kagwe said the country is pursuing aggressive market expansion strategies targeting Asia, the Middle East, Europe, Africa and North America in a bid to reduce dependence on a few established export destinations.
Speaking during International Tea Day celebrations at Momul Tea Factory in Kericho County, Kagwe said Kenya must reposition itself beyond bulk black tea exports if it is to maintain competitiveness in the changing global market.
“We are encouraging greater investment in value addition and product diversification because the future of Kenya tea lies beyond bulk exports,” Kagwe said.
He noted that Kenya was increasingly focusing on orthodox teas, green teas, purple teas, herbal blends, tea bags and branded consumer packs, products that attract higher prices in international markets compared to conventional black CTC tea.
Kenya remains the world’s leading exporter of black CTC tea, with the crop serving as one of the country’s top foreign exchange earners and supporting millions of livelihoods directly and indirectly.
According to the Tea Board of Kenya, the country is now exploring North Africa and North America as emerging export destinations while also seeking to strengthen its foothold in the United Arab Emirates market.
The push comes at a time when the tea industry is grappling with declining global prices, rising production costs, climate change pressures and shifting sustainability standards in international trade.
Kagwe warned that geopolitical tensions and market instability were also affecting tea earnings, forcing the government and industry players to rethink long-term strategies.
“These realities call upon us to embrace innovation, diversification, strategic reforms and stronger collaboration across the entire tea value chain,” he said.
The CS also defended the controversial Tea Levy Regulations, 2026, saying the levy was intended to create a sustainable financing model for the sector rather than burden farmers.
Under the new framework, the levy will be charged at the point of export through the Port of Mombasa and will fund tea promotion, branding, research, quality assurance and value-addition programmes.
Kagwe accused some factory directors of misusing farmers’ funds through unnecessary court battles against the levy despite previous consultations and agreements.
“The levy is not intended to impose unnecessary burdens on tea farmers or businesses, but to ensure some of the export proceeds are reinvested into protecting and growing the sector,” he said.
The government is also banking on climate-smart agriculture and sustainable farming practices to safeguard the future of tea production as global buyers increasingly demand compliance with Environmental, Social and Governance (ESG) standards.
Kagwe said Kenya must strengthen environmental stewardship, ethical sourcing and traceability systems to maintain its reputation in global markets.
“Kenya Tea must remain globally respected not only for its quality, but also for its commitment to responsible production, sustainability and social accountability,” he said.
International Tea Day celebrations brought together farmers, traders, manufacturers, researchers, machinery suppliers and development partners to discuss the future of the industry under the theme “Fostering Growth and Inclusion.”
Read: Kagwe Defends Tea Levy, Says Funds Will Boost Marketing and Value Addition
>>> Limuru Tea Pre-Tax Loss Deepens to KSh 50.02m
Leave a comment