CS Kagwe Urges Local Packaging of Kenyan Tea to Boost Global Competitiveness

Key Highlights

• Agriculture CS Mutahi Kagwe urges investors to package Kenyan tea at the source for higher returns.
• Historically, Kenyan tea has been packaged abroad, limiting local value addition.
• High packaging costs and lack of compliant materials have been major obstacles.
• Government has now scrapped taxes on packaging materials for agricultural products.
• Kenya produced 598.47 million kilograms of tea in 2024, up 4.95% from 2023.
• Purple tea, a Kenyan innovation, fetches three to four times more than black tea.
• CS emphasizes tea’s economic, environmental, and cultural importance.

Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has urged investors to prioritize packaging Kenyan tea within the country to maximize value for farmers and strengthen the country’s global competitiveness.

Speaking at the North America Tea Conference in South Carolina, Kagwe noted that Kenyan tea is often sold in bulk at the Mombasa Tea Auction, where international companies buy, blend, package, and brand the product abroad. This practice, he said, strips Kenya of the most profitable segments of the value chain.

To address this, the government has scrapped taxes on packaging materials for agricultural products, a move expected to ease costs and enable compliance with international market standards.

“By packaging at origin, we eliminate unnecessary costs, improve competitiveness, and strengthen Kenya’s position in the global tea market,” Kagwe told delegates.

He highlighted Kenya’s strong performance in global tea production, with output rising to 598.47 million kilograms in 2024, a 4.95 percent increase from the previous year. The growth was attributed to favorable weather, fertilizer subsidies, and expanded processing capacity.

Kenya is also diversifying into orthodox and specialty teas, with purple tea—developed at the Tea Research Institute—standing out as the only variety of its kind worldwide. Known for its antioxidant properties and health benefits, purple Orthodox tea currently earns three to four times the price of black tea.

“Kenya’s innovation in tea not only secures better earnings for farmers, but also places us ahead in meeting shifting global consumer demands,” Kagwe said.

The CS also underscored tea’s broader role, describing it as both a source of livelihood and a crop with environmental value, helping to conserve ecosystems, prevent soil erosion, and support biodiversity.

Kagwe further urged U.S. buyers to embrace Kenya’s black, green, and purple teas, emphasizing that quality products would always find a market.

He was accompanied by Tea Board of Kenya CEO Willy Mutai, KTDA Chair Geoffrey Kirundi, KTDA CEO Wilson Muthaura, and Kenyan ambassador to the U.S. David Kerich.

Kenya remains one of the world’s leading exporters of black tea, produced across both large estates and by hundreds of thousands of smallholder farmers under the Kenya Tea Development Agency (KTDA). Most of the country’s teas are processed using the CTC (Cut, Tear, and Curl) method, creating grades widely used in tea bags.

Kagwe’s U.S. mission formed part of a wider government effort to secure direct market access for Kenyan agricultural products.