Key Highlights:

• Kenya allocates $27 million to renovate 19 tea factories as part of sector reforms.
• Producers can now sell tea directly on international markets, bypassing auctions.
• Government targets major export expansion, with a goal to quadruple tea sales to China by 2030.

Kenya, the world’s largest tea exporter by volume, is rolling out a series of reforms to strengthen its tea industry and expand its global market share.

The government has earmarked KSH 3.5 billion ($27 million) to renovate 19 tea processing factories nationwide, according to Agriculture Principal Secretary Kiprono Rono. The announcement was made on June 17 and aims to improve operational efficiency and competitiveness across the sector.

The investment is part of a broader effort to modernize the industry. On May 3, the Ministry of Agriculture authorized direct international tea sales, allowing processors to bypass traditional auctions and middlemen. Officials say this will boost farmer incomes and streamline market access.

To further reduce production costs, the ministry also announced tax relief on tea packaging materials on May 6—a move meant to ease one of the major cost burdens facing processors.

These reforms come amid a new export push. Trade missions are being prepared by a delegation of industry leaders, including the Tea Board of Kenya (TBK), Kenya Tea Development Agency (KTDA), and East African Tea Traders Association (EATTA). Target regions include East Asia, the Middle East, China, Russia, and India.

At a May 15 meeting with Chinese investors, President William Ruto declared an ambitious goal to quadruple tea exports to China to 50,000 tonnes by 2030.

Kenya’s tea exports rose 11% in 2024 to reach 626,579 tonnes, generating KSH 189.1 billion ($1.5 billion) in revenue, according to the National Bureau of Statistics.

This article was initially published in French by Stéphanas Assocle

Edited in English by Ola Schad Akinocho