Agriculture Cabinet Secretary Mutahi Kagwe has announced the creation of a Common Marketing Development Fund, financed from a new levy designed to promote tea in Kenya and internationally.
- The move comes as the sector faces fluctuating prices, regulatory gaps, and competition from other tea-producing nations in the region—including Uganda and Rwanda.
- Speaking in Mombasa after meeting key industry players—including the Kenya Tea Development Agency (KTDA), the East African Tea Trade Association, and independent producers—CS Kagwe said that the fund would be embedded within upcoming regulations set to take effect soon.
- In a separate but related measure, the government has banned the hawking of tea, a practice where farmers and middlemen sell tea informally, often bypassing auction processes.
“Anybody buying tea from hawkers, wherever you are, we will deregister you. We will not protect any special people… we are not going to bow to political will or any other pressure to allow people who should not be in the tea industry to continue to be in the tea industry,” CS Kagwe said during the event, adding that an Agriculture Police Unit would be established to tackle such malpractices.
In an effort to modernize trade and increase competitiveness, Kenya is also working to digitize its tea auctions, allowing international buyers to participate remotely. Under the proposed system, buyers from distant locations will be able to purchase Kenyan tea in real time—provided they have a bank guarantee at the fall of the hammer.
“The goal is simple: to remove barriers and ensure fair competition while securing better prices for our farmers,” Kagwe said.
Rising Revenue, Shifting Markets
The Kenyan tea sector remains a cornerstone of the overall economy—with exports of the beverage generating KSh 225.2 billion last year, a significant increase from KSh 196.97 billion in 2023. The country’s leading markets include Pakistan, Egypt, and India, underscoring its strategic role in global tea supply chains.
Industry analysts say the reforms could strengthen Kenya’s position as a top global tea exporter but caution that small-scale farmers may face challenges adapting to stricter regulations and potential cost increases associated with the new levy.
While the government argues the changes will stabilize the industry, critics warn that over-regulation could push some players out of the market. The success of these reforms will likely hinge on their execution—and how well stakeholders navigate the shifting landscape.
