Kenyan farmers rejoice as government injects Sh3.5 billion to revamp tea sector

Africa, Business

AFRICA (Agency Report/Absalom Namwalo) — 27 March 2026 — Kenyan tea farmers have reason to celebrate after the government injected Sh3.5 billion to modernise factories, meet international standards and promote value addition for better prices at the Mombasa auction.  

Speaking at Olenguruone Tea Factory during the issuing of a corporation certificate, Agriculture PS Dr Kiprono Rono stressed that farmer welfare remains a priority and warned the KTDA board against corruption and mismanagement of funds. He announced Sh26 per kilo as the new price payable to farmers, up from Sh16.  

Rono outlined sweeping reforms aimed at raising farmer earnings to Sh100/kg by 2027, tackling low auction prices and high production costs. Strategies include factory modernisation, promoting orthodox tea, digitising payments and removing VAT on exports. He urged factories to embrace diversification and value addition to meet global demand.  

Under the reforms, KTDA factories must implement service-level agreements to guarantee quality services. Factories will also gain autonomy to conduct direct sales, boosting profitability and transparency. Rono emphasised the need for modern technology and field-level oversight to meet international consumer requirements.  

Willy Mutai of the Tea Board of Kenya echoed these sentiments, urging investment in research and improved processing standards. He noted that reforms on quality, diversification and industry revitalisation will enhance farmer bonuses and earnings. Regulations will enforce payment timelines, with 50% upfront and the balance within three months, easing cash flow challenges.  

Mutai added that reforms target 40% of Kenya’s tea to be value-added locally rather than exported in bulk. He stressed the importance of consistent green leaf quality, particularly in western Kenya, to attract premium buyers and strengthen competitiveness.