Government Allocates Sh3.5 Billion for National Tea Factory Upgrades

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Naivasha: The government has announced an injection of Sh3.5 billion aimed at upgrading infrastructure in 19 national tea factories across the country. This strategic move is designed to enhance efficiency and operational effectiveness within the sector, with the broader goal of increasing farmers’ earnings from their tea produce.

According to Kenya News Agency, the Principal Secretary for Agriculture, Dr. Kiprono Rono, shared insights on the government’s comprehensive plan to further stimulate the sector. This includes reducing taxes on tea and waiving levies on packaging materials as part of broader value addition initiatives. Dr. Rono emphasized that the ongoing reforms will enable local tea to be sold directly, thereby reducing transaction costs and improving returns for farmers.

‘We have set a budget of Sh3.5 billion to improve infrastructure in all 19 tea factories to boost their efficiency and meet quality demands,’ Dr. Rono stated. During a meeting in Naivasha with Kericho MCAs, he also announced Kenya’s plans to host an international tea conference in October. This event is seen as a significant opportunity to unlock new markets for local tea produce.

According to the Kenya Tea Industry Performance Report 2024, Kenya’s total earnings from tea reached Sh215.21 billion, marking a nine percent increase from Sh196.97 billion in 2023. The report detailed that Sh181.69 billion came from exports, Sh18 billion from local sales, and Sh15.52 billion from committee stocks. The country exported tea to 96 destinations, with Pakistan emerging as the largest importer, purchasing 206.77 million kilogrammes worth Sh70 billion.

Dr. Rono also highlighted that the current reforms extend to other agricultural value chains, such as coffee, pyrethrum, avocado, and sugar. Kericho is among the 19 counties set to receive over 500,000 pyrethrum seedlings, 1.2 million coffee seedlings, and 27 varieties of high-yielding, drought and disease-resistant sugarcane.

Additionally, the government is bolstering support for 1,450 ward cooperatives nationwide, enabling farmers to access certified seedlings and financial resources for their produce. The launch of last-mile fertiliser distribution centres will provide farmers with affordable fertilisers and essential extension services.

Kericho County Speaker, Dr. Patrick Mutai, expressed appreciation for the government’s support across various value chains, specifically mentioning coffee, pyrethrum, avocados, and tea reforms. He called for enhanced collaboration between county governments and the Department of Agriculture to ensure the successful implementation of these programs.

County Majority Leader, Philip Rono, confirmed the benefits Kericho is experiencing from the seedling distribution, which has already enhanced farmers’ earnings. He lauded the government’s financial and legislative support, which has revitalized coffee farming in the region. Furthermore, he welcomed the introduction of a new fodder crop variety, juncao, which has been distributed across all county wards, thus boosting milk production and earnings for dairy farmers.

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