Kenya Opens Global Tea Trade to All 142 Factories in Major Policy Shift

Kenya Opens Global Tea Trade to All 142 Factories in Major Policy Shift

New Direct Export Policy Announced
On Friday, Kenya’s Ministry of Agriculture unveiled a landmark policy allowing all 142 tea factories across the country to sell their tea directly to international buyers. The decision, announced by Cabinet Secretary Mutahi Kagwe, aims to eliminate middlemen and significantly raise income for smallholder tea farmers.

Speaking in Nyeri during International Tea Day celebrations, Kagwe emphasized the long-term benefits of the new policy:

“We want to ensure better returns for farmers, strengthen governance in the tea sub-sector, and promote transparency in smallholder tea factories.”

Boosting Farmer Earnings and Export Opportunities
The policy is part of a broader effort by the Kenyan government to revamp its agricultural export strategies, especially for tea—a critical foreign exchange earner. By giving factories the power to export directly, the Ministry hopes to reduce exploitation by intermediaries and help farmers secure higher profit margins.

Kagwe stated that the initiative is also designed to help Kenya penetrate new and emerging tea markets. He announced plans to lead a high-level delegation—including representatives from the Tea Board of Kenya (TBK), Kenya Tea Development Agency (KTDA), and the East African Tea Trade Association (EATTA)—on a trade mission to China, India, Russia, and the Middle East.

Orthodox Tea Auction Set for June
To support the transition toward premium tea varieties, Kagwe also revealed the upcoming launch of a dedicated auction window for orthodox teas. Scheduled to begin in June, the auction will operate within the Integrated Tea Trading System and be jointly managed by EATTA and TBK.

This new trading platform is intended to move the country beyond its heavy reliance on traditional Cut, Tear, and Curl (CTC) teas and towards more sustainable and higher-value orthodox teas.

Celebrating International Tea Day with Reforms
The announcement was made in conjunction with International Tea Day, observed every May 21 to recognize the importance of the global tea industry and promote sustainable practices. The United Nations encourages this day as a platform to foster responsible production, consumption, and food security.

With this sweeping policy reform, Kenya is positioning its tea industry for long-term growth, farmer empowerment, and a stronger presence on the global stage.

Photo: Lesama limited

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