Farmers in the tea and coffee sectors will soon earn more from their produce after the government introduces value-addition of the cash crops before export.
Agriculture and Livestock Development Cabinet Secretary Mithika Linturi said foreign nations are currently earning more from Kenyan tea and coffee by processing the produce through value-addition before being exported to the international markets.
Linturi said Kenyan farmers can only earn more if the government introduces large-scale processing of value addition to Kenyan cash crops.
He spoke during a fact-finding mission at the Dubai Multi-Purpose Commodity Center in the United Arab Emirates where Kenyan tea and coffee are processed for value addition before being exported to the international markets.
“We have made a tour at the Dubai Multi-Purpose Commodity Center and I’m impressed by the expertise and professionalism in the value addition of products here especially Kenyan tea and coffee,” Linturi said.
He said his ministry will establish Special Economic Zones (SEZs) at Dongo Kundu in Mombasa to start value addition of tea and coffee products before export.
The establishment of SEZs is a key flagship project under the Kenya Vision 2030 economic pillar.
“Adding value to Kenyan teas and coffee before export is a viable route of growing the country’s manufactured exports, transforming the tea and coffee sub-sectors in Kenya, and ensuring food security,” Linturi said.
The CS said whereas Kenya is the world’s leading exporter of tea accounting for 28 per cent of the Global tea exports, Kenya’s tea export earnings are relatively lower compared to the other key tea-producing countries.
Linturi has also assured that his ministry intends to achieve the goal of increasing agricultural Gross Domestic Product from Sh2.9 trillion to Sh3.9 trillion through the Agriculture Sector Transformation and Growth Strategy 2019-2029 by promoting product diversification and value addition along the agricultural value chains, including the tea value chain.
The CS said the government believes in value addition agro-processing as the best way to increase farmers' earnings and stimulate the economy while resolving the unemployment challenge by creating job opportunities for our youth in the country.
“To develop the tea and coffee sub-sectors, the government has provided fertiliser subsidies to cushion farmers against increasing cost of production. Other incentives shall be rolled-out to further enhance competitiveness, both at the country level as well as globally,” he said.
Linturi was accompanied by Kenya Tea Development Agency chairman, David Ichoho and CEO Wilson Muthaura among other officials from the ministry.
Muthaura promised that KTDA will collaborate with the Ministry to ensure Kenya doubles the volume of tea being processed in Dubai for value addition in a bid to increase local farmers’ earnings.
Last month Linturi flagged off the first-ever consignment of Kenyan value-added tea worth ShUSD29,667.6 (Sh3.7 million) to Australia.
