MURANG’A, Kenya — Agriculture and Livestock Development Cabinet Secretary Sen. Mutahi Kagwe has handed over a Sh28.7 million government grant to Thumaita Tea Factory to support the modernisation of its operations, improve tea quality and expand value addition aimed at increasing returns for tea farmers.
Speaking during the handover, Kagwe said the investment forms part of the government’s broader strategy to strengthen Kenya’s tea industry by improving processing efficiency, enhancing product quality and increasing the competitiveness of Kenyan tea in international markets.
The Cabinet Secretary said the funding will enable the factory to modernise its infrastructure and processing systems, allowing it to produce higher-quality tea while creating more opportunities for value addition.
He noted that value addition remains a key pillar in the government’s efforts to increase earnings for tea farmers by reducing reliance on the export of bulk tea and encouraging the production of higher-value finished products.
Kagwe also addressed concerns surrounding the Tea Levy, clarifying that the levy is paid by tea buyers and not by farmers.
He explained that revenue collected through the levy is reinvested into programmes that support the long-term growth and sustainability of the tea sector.
According to the Cabinet Secretary, the funds finance tea research, market promotion, climate resilience initiatives, innovation and value addition, all aimed at strengthening the industry’s competitiveness both locally and internationally.
“The Tea Levy is paid by buyers, not farmers, and is reinvested into research, market promotion, climate resilience, innovation and value addition to enhance the industry’s long-term competitiveness,” Kagwe said.
The government has identified the tea subsector as one of Kenya’s leading foreign exchange earners and has continued implementing reforms intended to improve productivity, expand access to new export markets and increase incomes for smallholder tea growers.