President Kenyatta Urges Kenya Tea Development Agency Holdings (KTDA) to Facilitate Increased Value Addition to Kenyan Tea – African Business

President Uhuru Kenyatta challenged Kenya Tea Development Agency Holdings, (KTDA), to develop a plan that will add value to 90 percent tea grown in Kenya before it is exported.

The President stressed that tea farmers will reap maximum rewards if there is more value added to the tea they make instead of selling it as raw.

“The real future for tea is value adding 90 percent of our tea and finding direct markets from the farm to the one consuming the tea in a cup. That will be the long-term solution and that solution lies with you to set the foundation,” President Kenyatta said.

Apart from increasing the income of tea farmers, President Kenyatta said value addition will also help to create more jobs for the country’s youth.

The Head of State spoke to directors of the smallholder sub-sector in tea on Saturday. He also announced that this year’s performance was the best in five years.

After the Government’s reforms, the smallholder tea farmers’ earnings rose by 42.4% to Kshs 64 billion in 2021 and Kshs 63 trillion in 2022.

“This is approximately an additional Kshs 18.74 billion that will be paid to tea farmers courtesy of the interventions we, as a Government, made to revitalize this sub-sector.

According to the President, the additional revenue that will be paid tea farmers has risen 44.6% from an average earnings of Kshs 33.71 per Kg green leaf in 2021 to Kshs 51.18 in 2022.

“With this performance, the average bonus payment per kilogram of green leaf in 2022 will rise by 76% from Kshs 21.07 earned last year to Kshs 37.11 in 2022,” President Kenyatta said.

Noting that 76% is an average increase, the President stressed that each tea plant will pay a different rate depending on its performance. Some factories will pay more than others.

President Kenyatta expressed optimism about the potential for the tea sub-sector to perform better this year, which will help the over 650,000 smallholder tea growers and the 30% of Kenyans employed in the wider agricultural sector.

“I am confident that once the ongoing reforms are fully implemented, the tea industry will be fully revitalized for the benefit of the tea farmers and the country,” President Kenyatta said.

The President highlighted key interventions that contributed towards the increase in earnings for the tea sector, including the setting of the minimum reserve at the Mombasa auction in July 2021. This led to an increase of tea export earnings from Kshs120 billion in 2020 to a whopping Kshs136 billion by 2022.

“Monthly payments to tea farmers are also being done by the 1st week (by 5th of every month) as opposed to the 3rd week,” President Kenyatta said.

President Kenyatta directed Peter Munya, Agriculture Cabinet Secretary, to increase fertilizer subsidy from Kshs 1billion to 3billion to further boost tea farmers’ income.

CS Munya stated that the Government, in collaboration with KTDA, is implementing many programs to improve the competitiveness and the livelihood of tea growers in Kenya.

Dr. David Kiarie Mburu, Chairman of Tea Board of Kenya, thanked the Government of stabilizing fuel prices and lowering electricity rates for mitigating the effects of the global economic recession.

“Going forward, the Board will continue working closely with other relevant agencies to ensure sustainability of tea farming as a meaningful source of livelihood to tea growers in the country,” Dr. Mburu said.

KTDA national chairman David Muni Ichoho spoke at the meeting that was also attended also by the Head of Public Service.

Distributed by APO Group for the Presidency of Kenya.