Export earnings from tea increased in the last four years to post Sh181.6 billion, during that period Kenya experienced a surge in markets, Agriculture Cabinet Secretary Mutahi Kagwe has said. 

He attributed the surge to enhanced market expansion activities including trade missions and promotion undertaken in Russia, Canada, Iran, Pakistan, Saudi Arabia, China, United Arab Emirates (UAE), Hong Kong, Egypt, Kazakhstan, Germany, USA and Ghana. 

The CS said that in a bid to boost tea exports and increase farmers’ incomes, the Tea Board of Kenya embarked on campaigns to promote the plucking and processing of quality teas. 

Appearing before the Senate plenary yesterday, Kagwe noted that the total payment to smallholder tea farmers in the country increased from Sh44.1 billion in 2021 to Sh90.5 billion in 2024. 

Enhanced promotion activities 

Further, the increase in the markets and earnings has also seen smallholder tea factories increase the monthly payment to tea farmers from Sh16 to Sh21 per kilo in the East of Rift and Sh20 in the West of Rift. 

“The increase in earnings by smallholder tea farmers is in line with the reform agenda on payment to farmers at a rate of 50 per cent of the proceeds of sale on a monthly basis. The total payments has increased from Sh50 per kilo of Greenleaf in 2022 to Sh59 in 2023 and Sh64 in 2024,” said Kagwe. 

Kenya’s tea sector reforms, spurred by the Tea Act 2020, focus on farmer-centric management, ensuring prompt payouts, and strengthening governance, while also promoting value addition and quality control in tea production.  

This is after Senator James Murango (Kirinyaga) asked the Ministry of Agriculture to show gains attained from the implementation of the tea reforms and provide a commitment towards the continued implementation of the reforms to ensure better returns for tea farmers across the country. 

Value-added teas surge 

According to Kagwe, the exports of Value Added Tea (VAT) increased from 20.3 million kilos in 2022 to 28.89 million kilos as of 2024 with the revenue from value-added teas increasing from Sh3.5billion in 2021 to Sh12.08billion in 2024. 

Kagwe said the production of high-value speciality teas has increased from 3.7 million kilos in 2023 to 7.2 million kilos in 2024 through licensing of Orthodox processing capacity and speciality tea manufacturers. 

To cushion the tea farmers against the high cost of fertilizer, the Government has for the last two years subsidized 194,000 metric tonnes of fertilizer distributed to farmers at a price of Sh2,500 per Bag from Sh3,500 representing a cost reduction of 40 per cent. 

“Due to accessibility of subsidized fertilizer coupled with good weather conditions, tea production for the year 2024 surpassed the 2023 production by 28.21million kilos (4.95 per cent) to stand at 598.47 million kilos against 570.26 million kilos for the year 2023 which was also significantly higher compared to 535.04 million kilos recorded in 2022,” said Kagwe. 

He said that in order to operationalize the Tea Act 2020, Regulations and Guidelines have been finalized and subjected to public participation in line with the Constitutional and the Statutory Instruments Act with regulations  Tea (Levy) Regulations, 2024. 

State of Macadamia 

Kagwe also listed Tea (Registration and Licensing) Regulations, 2024, Corporate Governance Guidelines and Code of Conduct for the Tea Sector, and guidelines on the quality of green leaf for processing by tea factories. 

Apart from the tea reforms, the Kirinyaga lawmaker asked the Cabinet Secretary to explain the current position of the government on the export of raw macadamia nuts. 

However, Kagwe responded that the position of the Government is that the exportation of raw macadamia (nuts-in-shell) is not allowed. 

Kagwe told the Senate that the lifting of the ban on exporting raw macadamia nuts (in shell) is inconsistent with the Government policy on promoting processing and value addition of agricultural produce. 

Boost to economy 

“Processing of macadamia nuts locally creates jobs in the manufacturing sector and boosts the economy through enhanced foreign exchange earnings with the macadamia industry in Kenya has created approximately 200,000 jobs across the value chain,” said Kagwe. 

He said that from July 2023 to February 2025, the country has earned Sh8.7billion by exporting 10,670 tons of macadamia kernel against Sh2.3billion from exporting 14,384.36 tons of in-shell (unprocessed) macadamias with this translating to an average price of Sh161/kg of in-shell macadamia against an export price of Sh816/kg for kernels. 

Murango asked Kagwe whether there were plans to lift the ban on the export of raw macadamia nuts (in shell) to ensure farmers get competitive prices for their produce from local processors and licensed exporters.