NAIROBI, Kenya- Kenya’s tea sector is set for a transformative upgrade with the government allocating Sh1 billion towards the construction of two value addition and branding centers.
This was announced by President William Ruto during the launch of Chai Gold, Kenya Tea Development Agency’s (KTDA) flagship tea brand for the international market.
This initiative aims to enhance the value, job creation, and wealth within the tea industry.
Elevating Kenyan Tea to Global Heights
Speaking at Ketepa Grounds in Kericho County, President Ruto underscored the importance of moving beyond raw tea exports.
“We are now moving to the next level where we are adding value, creating jobs, creating wealth,” he said.
By branding and processing more tea locally, the President highlighted that the industry could significantly increase its earnings and create numerous job opportunities.
The President urged the Kenya Tea Development Agency (KTDA) to match the government’s KSh1 billion investment by setting aside an additional KSh1 billion.
These funds will establish value addition facilities in Kericho and Nairobi, serving the Western and Eastern Rift tea-growing regions respectively.
President Ruto shared optimistic projections for the tea industry, attributing the success to the government’s subsidized fertilizer program.
Tea earnings are expected to reach KSh210 billion this year, a significant increase from KSh180 billion in 2022 and KSh140 billion in 2021.
Consequently, farmers are set to receive record bonus earnings of KSh70 billion.
“The subsidized fertilizer has been a game-changer, increasing productivity across all sectors of food production,” Ruto noted.
Strategic Partnerships and Future Plans
In a strategic move to enhance the global recognition of Kenyan tea, President Ruto announced a collaboration with Dutch conglomerate Unilever.
Henceforth, Lipton Teas will be sold with the tag “Origin of Kenya,” shedding the former “English Breakfast Tea” label that masked its true source.
Furthermore, Lipton has committed to establishing a fertilizer factory tailored for tea and supporting a tea research program at Kabianga University in Kericho.
The President also called on KTDA to diversify its offerings by increasing the production of orthodox tea, which is currently limited to 13 factories.
Additionally, he emphasized the need for KTDA to upgrade its facilities, automate processes, and support smaller factories in adding value and branding their teas.
By focusing on value addition, branding, and farmer support, the country is poised to transform its tea sector, creating more jobs and boosting the economy.