Francis Wambugu Irungu The government has officially handed over the KSh360 million, JICA-donated Japanese Sencha Green Tea Processing Factory to Kangaita tea farmers, ending a standoff that had left the facility idle since 2019 due to an ownership dispute.
Speaking during the handover, Agriculture and Livestock Development Cabinet Secretary Sen. Mutahi Kagwe said the directive to transfer the facility to farmers came directly from President William Ruto.
“This factory now belongs to the farmers of Kangaita. That is the message I was given by President William Ruto himself. We could not allow such an important investment to remain dormant while farmers waited to benefit,” Kagwe said.
The facility is the only factory in Africa producing authentic Japanese Sencha green tea, positioning Kenya to tap into premium global specialty tea markets where prices can reach up to USD 10 per kilogramme.
CS Kagwe thanked the Government of Japan, the Japan International Cooperation Agency (JICA), and Japanese taxpayers for the investment, saying the project represents the future of Kenya’s tea industry through technology transfer, premium processing, and higher farmer incomes.
He added that value addition would not only boost export earnings but also create employment opportunities for young people.
“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.
The Cabinet Secretary further announced that Japan will continue supporting technical training to help Kenyan experts master Sencha tea production, with the aim of establishing Kangaita as a continental centre of excellence in specialty tea manufacturing.
He also called for stronger protection of Kenya’s identity in international markets through Geographical Indications, noting that some countries continue to package and sell Kenyan tea as their own.
CS Kagwe reaffirmed the government’s commitment to reinvesting Tea Levy proceeds back into the sector through research, market promotion, innovation, and farmer empowerment, saying tea growers across the country will ultimately benefit.
He dismissed claims that the Tea Levy is hurting Kenya’s tea industry, revealing that tea uptake has surged to 93 per cent — its highest level in years — and insisting the levy remains critical to financing research, global marketing, and value addition that will secure the sector’s future.
“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,” Kagwe said.
The Cabinet Secretary clarified that the 0.08 per cent Tea Levy is not imposed on farmers but on tea buyers, and will provide the financial muscle needed to aggressively market Kenyan tea in new and emerging export destinations, fund research into improved tea varieties, strengthen climate resilience, and promote value addition.
“Where will the money to promote Kenyan tea in international markets come from if we refuse to support the Tea Levy? Let us be honest — it is not the farmer paying this levy. It is the buyer,” he said.
Kagwe argued that Kenya cannot expect to remain the world’s leading exporter of black tea while underinvesting in market development and innovation, stressing that sustainable financing is essential if farmers are to earn more from their crop.
He noted that ageing tea bushes have continued to reduce yields and quality in many tea-growing regions, making the development of new, high-yielding, climate-resilient varieties more urgent than ever.
