The government has awarded Gathuthi Tea Factory a KSh 65.2 million grant to modernize its tea processing operations and improve returns for tea farmers.

Government Awards KSh 65.2 Million Grant to Modernize Gathuthi Tea Factory

Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe presented the grant, saying the funding will support the installation of two automatic withering units to improve processing efficiency and enhance the quality of made tea.

The investment is expected to help the factory reduce processing time, improve product consistency and increase the value of tea supplied by farmers.

Investment Targets Higher Returns for Tea Farmers

Speaking during the grant presentation, Kagwe said the government remains committed to modernizing Kenya’s tea industry through investments in technology, innovation and value addition.

He noted that improving processing infrastructure is essential for increasing the competitiveness of Kenyan tea in local and international markets while delivering better returns to farmers.

Tea Levy to Support Sector Growth

The Cabinet Secretary also urged tea farmers to support the Tea Levy, saying it is paid by tea buyers and will finance programmes that directly benefit the tea sector.

According to Kagwe, revenue from the levy will support tea research, market expansion, climate resilience initiatives and other programmes aimed at improving productivity and strengthening the industry’s long-term growth.

Farmers Encouraged to Strengthen Cooperatives

Kagwe further encouraged tea growers to strengthen producer groups and cooperatives to improve their bargaining power and expand access to better markets.

He said strong farmer organizations play a key role in helping growers secure higher prices for their tea while supporting a more competitive and sustainable tea industry.

The grant forms part of the government’s wider efforts to modernize Kenya’s tea value chain through improved processing technologies, greater value addition and increased investment in farmer-focused programmes.

https://farmerstrend.co.ke/wp-content/uploads/2026/07/Government-Awards-KSh-65.2-Million-Grant-to-Modernize-Gathuthi-Tea-Factory-1024x683.jpeghttps://farmerstrend.co.ke/wp-content/uploads/2026/07/Government-Awards-KSh-65.2-Million-Grant-to-Modernize-Gathuthi-Tea-Factory-150x150.jpegFarmersTrendFarming NewsThe government has awarded Gathuthi Tea Factory a KSh 65.2 million grant to modernize its tea processing operations and improve returns for tea farmers.Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe presented the grant, saying the funding will support the installation of two automatic withering units to improve processing...New Generation Culture in Agriculture