Embu: The Government is in the process of implementing a raft of measures in the tea industry in a bid to double smallholder farmers’ earnings to Sh. 100 per kilo of Greenleaf by the year 2027.
According to Kenya News Agency, these measures, as outlined by Cabinet Secretary for Agriculture and Livestock Development Mutahi Kagwe, are part of a comprehensive reform programme known as the 10-point plan. This initiative aims to improve tea quality, stabilize prices, and ensure fair returns to farmers. Speaking at Rukuriri Tea Factory in Embu during the release of the 2025 Kenya Tea Industry Performance Report, CS Kagwe stated that the Ministry had finalized Greenleaf quality guidelines and disseminated this information to all stakeholders in the tea value chain to enhance the quality of tea.
Kagwe emphasized the importance of maintaining the ‘two leaves and bud’ standard across the country to eliminate price disparities between the East and West Tea Blocks. Historically, teas from the East of the Rift have fet
ched better premiums due to superior plucking standards. The Tea Board of Kenya has begun implementing the Strategic Tea Quality Improvement Programme (STQIP) to upgrade factories that consistently produce lower-quality tea. Using an annual tasting competition, the program ranks all factories and selects the 15 lowest-ranked ones for capacity building.
To ensure that Kenyan tea meets market requirements, a state-of-the-art laboratory is being established in Mombasa for scientific validation of tea quality. This facility will conduct microbial analysis and test for heavy metal contaminants, pesticide residues, and emerging contaminants. The lab represents a shift from traditional mouth-testing grading to a scientific approach, ensuring compliance with global market standards.
Additionally, the government is modernizing factories with a Sh. 3.7 billion loan facility offered at a concessionary rate of 5 percent interest. This funding is intended to aid facilities in upgrading machinery and diversifying into hi
gh-value products such as orthodox tea, reducing reliance on the volatile CTC tea production. The modernized approach aims to enter markets like Europe, where orthodox tea commands higher prices.
To combat high production costs, new management agreements have been signed to reduce management fees from 2.5 to 1.5 percent, directly benefiting farmers. Other measures include a ban on tea hawking, digital marketing initiatives, and sustainable funding for tea industry programs.
Furthermore, the government has instituted a 100 percent levy on imported teas under the Tea (Levy) Regulations 2025/26 to protect against dumping and unfair competition. The levy, payable at the point of import or export, aims to eliminate the influx of low-quality and cheap teas that have historically suppressed Kenyan tea prices. CS Kagwe clarified that this levy is a consumer cost and does not financially burden Kenyan smallholder farmers.
In 2025, tea sales reached Sh. 218.79 billion, marking a 2 percent increase from the previous
year’s value of Sh. 215.21 billion. Kenyan tea reached 100 destinations in 2025, compared to 96 in the previous year, with new markets including Kazakhstan, Ireland, and Japan. Unlike previous years, last year’s results were released digitally via QR code scanning to reduce printing costs and provide farmers with faster access.
