Kenya allocates US$77.3M to modernise tea factories, boost farmer earnings
The government has released Sh4.5 billion so far, including Sh1 billion for factory upgrades, while 99,000 tonnes of fertiliser are planned for nationwide distribution.
KENYA – Kenya has allocated Kes 10 billion (US$77.3M) to modernise smallholder tea factories, expand value addition and mechanise operations as the government seeks to improve earnings for tea farmers.
Agriculture Principal Secretary Paul Ronoh said Kes 4.5 billion (US$34.77M) has already been released under the programme, with Sh1 billion allocated to factory modernisation and the balance used to subsidise fertiliser.
Ronoh spoke at the Port of Mombasa during the flagging off of 30,000 metric tonnes of fertiliser for Kenya Tea Development Agency (KTDA) farmers. He said the consignment was the first of 99,000 metric tonnes scheduled for nationwide distribution ahead of the rainy season.
The PS praised KTDA for securing the fertiliser earlier than last year, when deliveries reached farmers in December. He said timely availability would support productivity among smallholder tea farmers.
The government has also implemented reforms aimed at improving efficiency, strengthening tea marketing and increasing returns to farmers. Ronoh assured KTDA that the remaining funds under the government support programme would be released to ensure the agency remains financially stable and able to operate efficiently.
He said recent tea auction performance indicated improved prospects for farmers, noting that KTDA sold all its tea while prices improved following expanded marketing efforts by the Tea Board of Kenya (TBK).
“The tea sector is on course to transform and contribute more to farmers’ livelihoods and the country’s economic growth,” Ronoh said.
Tea farmers will purchase the subsidised fertiliser at Kes 2,000 per bag, matching the price under the national fertiliser subsidy programme. Ronoh said KTDA must procure fertiliser through competitive international bidding to ensure quality and value for money.
He also commended TBK for tightening enforcement measures and urged farmers to maintain quality by harvesting only mature tea leaves. He said quality remains important for securing better prices in domestic and international markets.
Ronoh announced that a scientific tea testing centre had completed its pilot phase and would soon become fully operational. The centre is expected to address concerns over tea quality testing and certification.
The government is also promoting local tea packaging to increase value addition instead of exporting tea in bulk for packaging overseas. Ronoh said tax incentives on packaging materials were intended to encourage investors and processors to package Kenyan tea locally, creating jobs.
KTDA chairman Enos Njeru said the fertiliser consignment would provide about 1.9 million 50kg bags of NPK 26:5:5 for distribution to smallholder tea farmers.
Njeru said KTDA uses international competitive bidding to secure quality fertiliser at affordable prices. The consignment will move from Mombasa to Nairobi by rail before being transported by road to tea factories across tea-growing regions.
Njeru said timely fertiliser application remains critical for maintaining healthy tea bushes and sustaining production of high-quality green leaf.
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