Header Ads

Kenya launches orthodox tea trading window to boost farmers’ earnings


The government has launched the Orthodox Tea Trading Window at the Mombasa Tea Auction, a move set to diversify Kenya’s tea exports and increase farmers’ earnings through specialty teas.

The trading kicked off with 2,925 packages, equivalent to 91,798 kilos of Orthodox tea, marking the first in a series of consignments aimed at tapping into the growing global demand for premium specialty teas.

Speaking during the launch, Cabinet Secretary for Agriculture and Livestock Development, Mutahi Kagwe, said the new platform would not only elevate Kenya’s reputation in the global tea market but also improve farmers’ income.

“Kenya has an excellent profile as a leading producer of CTC teas. But it is high time we diversified by increasing our capacity to produce orthodox teas to capture the ever-changing global market. This diversification will mean more money in farmers’ pockets, greater resilience, and new revenue streams,” said Kagwe.

Unlike bulk CTC teas, which fetched an average of USD 2.28 per kilo at the Mombasa Auction, Orthodox teas last year traded between USD 3.40 and USD 4.16 per kilo, with an average of USD 3.70. 

In 2024, Kenya produced 7.51 million kilos of orthodox tea, exporting five million of it, a drop from 12.34 million kilos in 2023, largely due to disruptions in the Iranian market. The CS assured that consultations were underway with Tehran to restore full trade.

Currently, the Tea Board of Kenya (TBK) has licensed 22 Orthodox tea manufacturers, with plans to nearly double the number to 42 by 2027.

“Our target is ambitious but achievable. We aim to grow installed Orthodox capacity from 15 million kilos in 2024 to 200 million kilos by 2030,” Kagwe added.

In support of this expansion, TBK has established a Tea Quality Assurance Laboratory in Mombasa to provide real-time quality checks, product testing, and food-safety certification.

The Mombasa Tea Auction is also undergoing a digital transformation, enabling buyers from across the globe to trade in real time. According to the CS, this shift will improve transparency, curb cartels, enhance price discovery, and strengthen Kenya’s position as a modern and efficient tea-trading hub.

“This launch is a turning point for our tea sector,” Kagwe said. “It is about securing the future of our farmers, diversifying our markets, and ensuring Kenya maintains its leadership in the global tea industry.”

No comments:

Powered by Blogger.