• Kenya tea factory modernisation enters a new phase as CS Mutahi Kagwe orders factories to reject poor-quality leaf and improve tea value.

Kenya Tea Factory Modernisation

CS Kagwe Orders Tea Factories to Reject Poor-Quality Leaf as Government Rolls Out KSh7.1 Billion Modernisation Drive

Kenya’s tea industry is set for a major transformation as the government rolls out a KSh7.1 billion tea factory modernisation programme, with Agriculture Cabinet Secretary Mutahi Kagwe directing factories to reject green leaf that fails to meet the recommended quality standard.

Kagwe said investment in modern processing equipment must go hand in hand with better-quality tea leaves if Kenyan farmers are to earn higher returns and the country’s tea industry is to regain greater value in international markets.

The CS issued the directive during a visit to Kapsara Tea Factory, where he handed over KSh44.6 million for the installation of a new withering plant.

The investment forms part of the wider government programme aimed at replacing ageing factory machinery, improving energy efficiency, reducing processing costs and supporting the production of higher-value tea products.

Factories told to enforce ‘two leaves and a bud’ standard

Kagwe said tea factories should strictly enforce the recommended “two leaves and a bud” standard when receiving green leaf from farmers.

He argued that factories cannot produce premium tea when they accept poor-quality raw material and mix it with high-quality leaf during processing.

During his visit to Kapsara, the CS displayed samples of tea plucks to demonstrate the difference between quality green leaf and material that should not be accepted by factories.

“If we have agreed that quality tea is two leaves and a bud, then that is what must come to the factory.”

Kagwe said accepting poor-quality leaf ultimately affects every farmer because the lower-quality material can reduce the value of the tea produced by an entire factory.

He said the objective is not to punish farmers but to establish a quality culture that can increase the international value of Kenyan tea and improve farmers’ earnings.

KSh7.1 billion tea factory modernisation programme

The government has allocated KSh7.1 billion to modernise tea factories, with the programme expected to address some of the industry’s long-standing challenges.

Many tea factories continue to operate with ageing machinery that consumes significant amounts of energy and increases processing costs.

The modernisation programme is expected to replace outdated equipment with more efficient machinery while improving processing capacity and product quality.

At Kapsara Tea Factory, the KSh44.6 million allocation will finance a new withering plant.

The new equipment will replace ageing machinery that has been consuming large amounts of electricity.

Improved energy efficiency could help factories reduce operating costs and potentially improve the returns available to farmers.

However, Kagwe said modern equipment alone cannot transform the industry.

The quality of the green leaf entering the factory must improve at the same time.

Poor-quality leaf affects farmer earnings

The quality of tea delivered to factories has a direct bearing on the value of the final product.

Kagwe warned that when poor-quality leaf is mixed with high-quality leaf, the value of the resulting tea can decline.

This ultimately affects farmers because tea produced at lower quality attracts weaker prices in international markets.

He cited Momul Tea Factory as an example of what improved green-leaf quality can achieve.

According to Kagwe, the factory increased the value of its tea from approximately US$2 per kilogram to more than US$3 per kilogram after improving the quality of green leaf supplied for processing.

The example, he said, demonstrates why the conversation around tea quality should focus on the amount of money that eventually reaches farmers.

Government wants more high-value Kenyan tea

The modernisation programme is not only about replacing machinery.

Kagwe said the government wants Kenya to increase production of orthodox, specialty and value-added teas while expanding into more international markets.

Kenya has traditionally been heavily associated with black CTC tea, particularly in bulk export markets.

The government now wants factories and the wider industry to diversify their products and capture more value from the country’s tea.

Producing differentiated and specialty teas could allow Kenyan producers to target consumers and markets that are willing to pay premium prices.

Greater value addition could also reduce the industry’s dependence on bulk tea exports.

Market diversification remains a priority

Kagwe challenged the tea industry to maintain its traditional markets while aggressively pursuing new international buyers.

He said expanding production of orthodox, specialty and value-added teas would create opportunities to enter markets beyond those traditionally served by Kenyan tea exporters.

The strategy is intended to strengthen Kenya’s position in the international tea market and create additional sources of demand for farmers.

Market diversification will also become increasingly important as competition grows from other tea-producing countries.

For Kenyan farmers, the objective is ultimately to ensure that increased production and improved quality translate into higher and more stable earnings.

Tea levy to support industry transformation

Kagwe also defended the government’s tea levy, criticising politicians who oppose it.

He said the levy is paid by buyers and not directly by farmers or tea factories.

According to the CS, revenue generated through the levy will support several areas of the tea industry, including:

  • Price stabilisation
  • Tea research
  • Infrastructure development
  • Marketing
  • Quality improvement
  • Value addition
  • Development of new international markets

He said the funds would also contribute to strengthening the global identity of Kenyan tea.

The government’s position is that a stronger financing mechanism is necessary to support long-term investment in the sector.

Farmers need stronger extension support

Improving tea quality will also require changes at farm level.

Kagwe said farmer training and agricultural extension services will continue to support the government’s quality improvement programme.

Farmers need practical guidance on harvesting standards, plucking intervals and proper handling of green leaf before it reaches the factory.

The emphasis on the “two leaves and a bud” standard is therefore part of a wider attempt to improve quality throughout the tea value chain.

If factories strictly reject poor-quality leaf, farmers will also have a stronger incentive to adopt recommended harvesting practices.

Roads also important to tea production

Trans Nzoia Senator Allan Chesang praised Kagwe’s efforts to reform the agricultural sector and improve farmer incomes.

He also pointed to improvements in road infrastructure in tea-growing areas.

Better roads can help reduce the time required to transport green leaf from farms to factories.

This is particularly important for tea because harvested green leaf needs to reach processing facilities quickly to maintain quality.

Improved transport infrastructure can therefore complement investments in factory machinery and farm-level production practices.

Kapsara receives KSh44.6 million investment

At Kapsara Tea Factory, the KSh44.6 million investment will specifically support the installation of a new withering plant.

The equipment is expected to replace older machinery and improve the efficiency of the factory’s processing operations.

Kagwe directed the factory’s management to ensure that the funds are used strictly for the intended purpose.

He also emphasised the importance of continuing farmer training and extension services alongside the factory investment.

The government wants the modernisation programme to produce measurable improvements in processing efficiency, tea quality and ultimately farmer incomes.

Kenya tea factory modernisation must reach the farmer

The government’s KSh7.1 billion investment represents a significant attempt to address some of the structural challenges facing Kenya’s tea industry.

But the success of Kenya tea factory modernisation will ultimately be measured by what happens beyond the factory gates.

Modern machinery can reduce energy consumption and processing costs. Better-quality green leaf can improve the value of finished tea. New products and markets can increase export earnings.

But farmers must see the benefits through stronger prices and improved annual earnings.

Kagwe’s message is therefore straightforward: modern factories and poor-quality green leaf cannot deliver the transformation Kenya’s tea industry needs.

The government is now betting on a combination of modern processing technology, stricter quality standards, farmer training, value addition and market diversification to create a more competitive tea industry.

If the strategy succeeds, Kenya could move further away from reliance on bulk tea exports and capture more value from one of its most important agricultural commodities.

For tea farmers, the critical question will be whether these reforms ultimately translate into better returns for every kilogram of quality leaf delivered to the factory.

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