Kenya seeks US$34.7M to modernize tea factories, boost value addition for farmers

KENYA – Kenya is seeking to raise Kes 4.5 billion (US$34.72M) to modernize tea processing factories and strengthen value-addition infrastructure as part of efforts to improve farmer earnings, lower production costs and enhance the country’s competitiveness in the global tea market. 

The programme, unveiled during the 2026 International Tea Day celebrations at Momul Tea Factory in Kericho County, targets ageing tea factories and limited value-addition capacity within Kenya’s smallholder tea subsector. 

Speaking during the event, Agriculture Principal Secretary Dr. Paul Rono said the government had already secured Kes 1 billion for the initiative, while efforts continued to mobilize the remaining Kes 3.5 billion (US$27.01M) through the sector working group and budget committee. 

“The sector working group through the budget committee is working on the Sh4.5 billion programme. Already, Kes 1 billion has been secured, and efforts are ongoing to mobilize the remaining funds so that we can upgrade and improve tea value addition infrastructure for the benefit of farmers,” said Dr. Rono. 

According to the Ministry of Agriculture, the investment will focus on modernizing tea factories, improving operational efficiency, reducing processing costs and expanding value-addition capacity in one of Kenya’s leading foreign exchange earning sectors. 

Kenya remains one of the world’s top exporters of black tea, with the industry playing a major role in employment creation, rural livelihoods and export earnings. Millions of Kenyans depend directly and indirectly on tea farming, particularly in Rift Valley, Central Kenya and parts of Western Kenya where smallholder production dominates. 

Despite its importance, the tea sector has continued to face challenges including high production costs, outdated processing equipment, fluctuating international prices and limited value addition, factors that have affected farmer incomes and factory profitability. 

Dr. Rono said part of the proposed funding would go toward rehabilitating older tea factories whose ageing machinery has contributed to operational inefficiencies and rising costs.  

He emphasized that strengthening value addition remains critical for increasing export earnings and reducing dependence on bulk tea sales. 

“Many small tea factories are unable to put up modern value addition infrastructure on their own. Through this programme, we want to create stronger support systems that will help farmers benefit more from their produce,” he stated. 

The Agriculture PS added that the government was implementing broader reforms aimed at safeguarding tea quality, improving institutional support and ensuring long-term sustainability in the sector. 

“When we started discussing quality concerns some years back, there were huge disparities in standards, but farmers have worked hard to maintain and improve quality. That is why Kenyan tea continues to command respect globally,” Rono said. 

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