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Government injects Sh 3.5 billion to revitalize the tea sector

The government will inject Sh3.5 billion to upgrade infrastructure in 19 national tea factories across the country in a bid to improve efficiency and operational effectiveness.

This initiative is part of ongoing reforms in the tea sector, aimed at ensuring farmers receive higher earnings from their produce.

According to the Principal Secretary for Agriculture, Dr Kiprono Rono, the government also intends to reduce taxes on tea and waive levies on packaging materials as part of value addition efforts.

Dr Rono stated that, through the ongoing reforms, local tea will be subjected to direct sales to lower transaction costs and enhance returns.

“We have set a budget of Sh3.5 billion to improve infrastructure in all 19 tea factories to boost their efficiency and meet quality demands,” said Dr Rono.

Speaking in Naivasha during an engagement with Kericho MCAs, the PS noted that Kenya will host an international tea conference in October this year, aimed at unlocking more markets for local produce.

According to the Kenya Tea Industry Performance Report 2024, the country’s total earnings from tea stood at Sh215.21 billion—an increase of nine per cent from Sh196.97 billion in 2023.

The report indicated that Sh181.69 billion was earned from exports, Sh18 billion from local sales, and Sh15.52 billion from committee stocks.

During the same period, Kenya exported tea to 96 destinations, with Pakistan being the largest importer, purchasing 206.77 million kilogrammes worth Sh70 billion.

Dr. Rono further noted that the reforms also target other agricultural value chains, including coffee, pyrethrum, avocado, and sugar.

He mentioned that Kericho is among 19 counties set to benefit from over 500,000 pyrethrum seedlings, 1.2 million coffee seedlings, and 27 varieties of sugarcane that are high-yielding, drought and disease-resistant, and have a shorter maturity period.

Additionally, the government is supporting 1,450 ward cooperatives nationwide, where farmers will access certified seedlings and financing for their produce.

Dr Rono also announced the launch of last-mile fertiliser distribution centres, where farmers will benefit from affordable fertilisers as well as extension services.

Kericho County Speaker, Dr Patrick Mutai, welcomed the government’s support for various value chains, including coffee, pyrethrum, avocados, and tea reforms.

He called for stronger collaboration between county governments and the Department of Agriculture to ensure the successful implementation of the programmes.

County Majority Leader, Philip Rono, affirmed that Kericho is among the counties benefiting from the seedling distribution, which has already enhanced farmers’ earnings.

He praised the government’s financing and legislative support, which have revitalized coffee farming in the country.

He also welcomed the introduction of a new fodder crop variety, juncao, which has been distributed across all county wards, boosting milk production and earnings for dairy farmers.

By Erastus Gichohi

 

 

 

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