Tea farmers in Kenya are enjoying growth as government subsidies and increased exports breathe new life into the sub-sector on increased production and favourable market conditions.

With higher demand in global markets, the industry is witnessing improved earnings, positioning tea as a key driver of economic prosperity for Kenya and the farming communities in the country.

Recent data from the Kenya Tea Development Agency (KTDA) and Kenya National Bureau of Statistics (KNBS) paint a promising picture for farmers, as tea export earnings and government support initiatives translated into tangible benefits for their livelihoods.

In the 2023/2024 fiscal year, smallholder tea farmers earned an average of Sh66 per kilogram of green leaf, up from Sh59.02 in the previous year. This improvement is attributed to increased production and favourable market conditions.

KNBS reported that “Tea production for the first half of 2024 was higher by 47.44 million kilograms 17 per cent compared to the same period in the previous year, totalling 321.09 million kilogrammes.”

This surge in production not only boosted export volumes but also led to record revenues of Sh180.57 billion in 2023, a significant increase from Sh138.09 billion in 2022.

Farmers like James Kiprop from Kericho County have experienced the impact firsthand. “This year, we could afford more fertiliser, and the yields were better than we’ve seen in years. The extra income has helped me pay school fees for my children and even invest in my farm,” he stated.

This progress has been aided by the government’s Sh2 billion fertiliser subsidy programme, which allowed farmers to purchase fertiliser at a reduced price of Sh2,500 per 50-kilogramme bag. By reducing input costs, the initiative has made farming more profitable for over 650,000 smallholders.

Despite these successes, erratic weather patterns, fluctuating global tea prices, and limited value addition remain barriers to the industry’s full potential.

Currently, only 5 per cent of Kenya’s tea is value-added, with the rest exported in bulk. Efforts are underway to increase this to 50 per cent by 2027, focusing on packaging, branding, and product diversification to capture higher margins in international markets.