Kenya plans to expand its orthodox (specialty) tea production capacity from 15,000 to 200,000 tons by 2030 under the Bottom-Up Economic Transformation Agenda (BETA).
The government launched its first specialty tea auction in Mombasa on September 24, with prices expected at $3–$10/kg, compared with $2.28/kg for bulk black CTC tea.
Kenya exported 594,500 tons of tea in 2024, generating $1.4 billion, but specialty teas represent only 1% of its exports, limiting value capture.
Kenya, the world’s largest tea exporter by volume, seeks to raise value addition in its tea sector by scaling up specialty production. The government aims to increase installed capacity for orthodox tea to 200,000 tons by 2030, compared with the current 15,000 tons, according to Agriculture Cabinet Secretary Mutahi Kagwe, as reported by local media.
Only 22 processing units are currently licensed to produce orthodox teas. Kagwe expects the number to almost double to 42 by 2027 as part of the Bottom-Up Economic Transformation Agenda (BETA) launched under President William Ruto in 2022.
Authorities plan to integrate orthodox teas into the auction system previously reserved for black CTC (Cut-Tear-Curl) tea. Kenya held its first specialty tea auction in Mombasa on September 24.
Officials say the move not only diversifies exports but also attracts investment into the nascent specialty tea sector. Auctions enable higher prices and more transparency, strengthening market interest.
Local outlet The Star reported that prices at the inaugural auction were expected between $3 and $10 per kilogram, well above the current average of $2.28 per kilogram for bulk CTC tea.
Kenya’s tea exports remain dominated by black CTC, which accounts for 99% of production and shipments. Specialty teas represent just 1%, meaning the country misses out on substantial value creation in a segment with higher margins.
Data from the Tea Board of Kenya (TBK) show the country exported 594,500 tons of tea in 2024, generating 181.69 billion shillings ($1.4 billion) in revenue.
This aricle was initially published in French by Stéphanas Assocle
Adapted in English by Ange Jason Quenum
Togo parliament adopts WAEMU law against currency counterfeiting Bill defines offences including ...
Since its 2019 IPO, Airtel Africa paid Deloitte over $37 million in audit and non-audit fees,...
CCR-UEMOA presents mid-term review of private sector competitiveness efforts Reforms, AfCFTA trai...
World Bank announces $137 million to boost West Africa digital economy Program expands broad...
Tilenga oil project required land from 4,954 households in Uganda Over 99% of affected households...
New 2,000-unit housing project launched in Busia County Part of broader effort to close Kenya’s housing gap Program also aims to boost jobs...
U.S. firm signs tracker supply deal for 258 MW solar project Project includes battery storage and feeds into national grid Move strengthens...
NOC begins first phase of pipeline linking Farigh field to Brega Project aims to secure gas for power generation and industry Move comes as...
Eni reports over 1 trillion cubic feet of new gas offshore Libya Discoveries could be tied to existing infrastructure for quick output Move...
Event highlights growing role of diaspora entrepreneurs across multiple sectors Networks support trade, investment and SME...
Afreximbank launches Impact Stories season two highlighting trade-driven transformations Series features projects across Africa and Caribbean, from...