Direct to the World: Kenya Empowers Tea Factories with Export Licenses in Historic Reform

Unknown Apr 02, 2026 1,200 Views

Kenya's tea sector is witnessing a revolutionary transformation as all 142 tea factories across the country have been awarded the license to sell directly to global markets, avoiding conventional middlemen. The radical reform, which was declared by Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe, is aimed at increasing farmers' revenues, improving sector transparency, and making Kenyan tea more competitive on the international market.

Key Highlights:

The policy enables tea factories to export tea to foreign buyers directly, cutting out intermediaries and reducing profit margins for farmers by a wide margin.
The reforms are a component of a wider plan aimed at promoting value addition, export diversification, and enhanced governance in the multi-billion shilling tea industry.
Senior delegations, such as the Tea Board of Kenya (TBK), Kenya Tea Development Agency (KTDA), and East African Tea Trade Association (EATTA), will focus on emerging markets like China, India, Russia, and the Middle East to aggressively promote Kenyan tea.
An orthodox tea auction window will be introduced in June within the Integrated Tea Trading System (ITTS), offering a specialized platform for high-quality orthodox teas, which are increasingly popular overseas.
The auction, organized by EATTA and TBK, would seek to dispose of unsold stock and promote a move away from conventional Cut, Tear, and Curl (CTC) teas to more sustainable and value-added orthodox teas.

Other proposals also seek tax relief on tea packaging materials and in-country sales to help lower costs of production and promote in-country consumption.

The reforms fall in line with Kenya's Vision 2030 and the Agricultural Sector Transformation and Growth Strategy towards sustainable growth and improved returns to smallholder farmers.

Source: Kenya News Agency, Capital FM, KBC, Standard Media, TV47

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