Agriculture Cabinet Secretary Mutahi Kagwe./HANDOUT
Agriculture Cabinet Secretary Mutahi Kagwe has handed over a Sh360 million Japanese-funded Sencha green tea processing factory to farmers in Kirinyaga, as the government seeks to expand Kenya’s footprint in premium specialty tea markets.
The facility at Kangaita Tea Factory is billed as the first in Africa capable of producing authentic Japanese Sencha green tea.
Speaking during the handover, Kagwe said the factory would enable farmers to diversify beyond traditional black tea and access higher-value international markets.
“This factory now belongs to the farmers of Kangaita. That is the message I was given by President William Ruto himself,” Kagwe said.
“We could not allow such an important investment to remain dormant while farmers waited to benefit.”
The Sh360 million facility, donated through the Japan International Cooperation Agency (JICA), had remained idle since 2019 following an ownership dispute.
According to Kagwe, Sencha tea can fetch prices of up to $10 per kilogramme in premium markets, presenting an opportunity to improve earnings for farmers through value addition.
He said Japan would continue providing technical training to Kenyan experts in Sencha production, with the government seeking to establish Kangaita as a centre of excellence for specialty tea manufacturing in Africa.
Kagwe also used the event to defend the Tea Levy amid criticism that it has contributed to challenges facing the sector.
He dismissed claims that the levy had caused a glut, saying tea uptake had risen to 93 per cent, which he described as its highest level in years.
“Tea uptake has increased to 93 per cent compared to the levels witnessed three years ago. It is therefore not true that the Tea Levy has caused a glut,” he said.
Kagwe maintained that the 0.08 per cent levy is charged to tea buyers rather than farmers and said proceeds would support research, international marketing, climate resilience and value addition.
“Where will the money to promote Kenyan tea in international markets come from if we refuse to support the Tea Levy?” Kagwe posed.
“Let us be honest, it is not the farmer paying this levy. It is the buyer.”
The CS said Kenya must invest in developing new markets and improving its products if it is to maintain its position as a major global exporter of black tea while increasing returns to growers.
He further raised concern over ageing tea bushes, saying they were affecting productivity and quality in some growing areas and underscored the need for research into high-yielding and climate-resilient varieties.
Kagwe said value addition could also create employment opportunities for young people in tea-growing communities.
“The children of tea farmers must also benefit from this industry. Value addition creates industries, creates jobs and ensures the next generation sees agriculture as a profitable enterprise,” he said.
He thanked the Japanese government, JICA and Japanese taxpayers for financing the Kangaita facility, describing the investment as an example of how technology transfer and premium processing could transform Kenya’s tea sector.
Kagwe also called for greater use of Geographical Indications to protect the identity of Kenyan tea in international markets, saying some countries package and sell Kenyan tea under their own identities.
He said the government would channel Tea Levy proceeds towards research, market promotion, innovation and other interventions aimed at improving returns for farmers.
