The Kenyan government is set to introduce a new levy aimed at bolstering marketing and research within the country’s tea industry. This initiative seeks to enhance the global competitiveness of Kenyan tea by investing in market development and innovation.
Establishment of the Common Tea Marketing Development Fund
Agriculture Cabinet Secretary Mutahi Kagwe announced plans to create a Common Tea Marketing Development Fund dedicated to supporting both domestic and international market development for Kenyan tea. He stated, “We have new regulations and next week I might be gazetting them, which will assist in developing the sector, among them is the introduction of a Common Tea Marketing Development Fund to assist in marketing and developing the sector.”
Tea Industry Performance and Challenges
In 2024, Kenya’s tea exports experienced a 9% increase, reaching KSh215.21 billion, up from KSh196.97 billion in the previous year. Local sales also saw growth, amounting to KSh18 billion. Tea production rose from 570 million kilograms in 2023 to 598 million kilograms in 2024. Despite these gains, the industry faced challenges such as political instability in key markets like Sudan and Pakistan, leading to reduced exports to these countries.
Future Outlook
The introduction of the levy and the establishment of the Common Tea Marketing Development Fund are part of the government’s broader strategy to enhance the tea sector’s sustainability and profitability. By focusing on marketing, research, and value addition, Kenya aims to strengthen its position in the global tea market and ensure better returns for its farmers.