CS Kagwe hands over Africa’s first Japanese Sencha tea factory to Kirinyaga farmers
By Bancy Lole, July 23, 2026The government has handed over the Ksh360 million JICA-donated Japanese Sencha Green Tea Processing Factory to Kangaita tea farmers after the project remained idle since 2019 due to an ownership dispute.
Speaking on Thursday July 23, 2026, during handing over ,Agriculture and Livestock Development Cabinet Secretary Sen. Mutahi Kagwe, said the directive came from the president for the facility to be given to the farmers.
“This factory now belongs to the farmers of Kangaita. That is the message I was given by President William Ruto himself. We could not allow such an important investment to remain dormant while farmers waited to benefit.”
The facility is the only factory in Africa producing authentic Japanese Sencha green tea, positioning Kenya to tap into premium global specialty tea markets where prices can reach up to Ksh 1,290 (USD10) per kilogramme.
Taxpayers between two countries
CS Kagwe thanked the Government of Japan, JICA and Japanese taxpayers for the investment, saying the project represents the future of Kenya’s tea industry through technology transfer, premium processing and higher farmer incomes.
He said value addition would not only increase export earnings but also create employment opportunities for young people.
“The children of tea farmers must also benefit from this industry. Value addition creates industries, creates jobs and ensures the next generation sees agriculture as a profitable enterprise.”
The Cabinet Secretary further announced that Japan will continue supporting technical training to enable Kenyan experts to master Sencha tea production and establish Kangaita as a continental centre of excellence in specialty tea manufacturing.
He also called for stronger protection of Kenya’s identity in international markets through Geographical Indications, saying some countries continue to package and sell Kenyan tea as their own.
Tea Levy proceeds
CS Kagwe reaffirmed the government’s commitment to investing Tea Levy proceeds back into the sector through research, market promotion, innovation and farmer empowerment, saying the ultimate beneficiaries will be tea growers across the country.
The CS has dismissed claims that the Tea Levy is hurting Kenya’s tea industry, revealing that tea uptake has surged to 93 per cent, its highest level in years, and insisting the levy is critical to financing research, global marketing and value addition that will secure the sector’s future.
“Tea uptake has increased to 93 per cent compared to the levels witnessed three years ago. It is therefore not true that the Tea Levy has caused a glut,” CS Kagwe said.
The Cabinet Secretary said the 0.08 per cent Tea Levy is not imposed on farmers but on tea buyers, and will provide the financial muscle needed to aggressively market Kenyan tea in new and emerging export destinations, fund research into improved tea varieties, strengthen climate resilience and promote value addition.
“Where will the money to promote Kenyan tea in international markets come from if we refuse to support the Tea Levy? Let us be honest—it is not the farmer paying this levy. It is the buyer.”