A Chinese company is set to inject Sh13 billion into boosting Kenya’s orthodox tea exports. Zhang Chaobin, Chairperson of Benny Tea met with President William Ruto in Nairobi where the two agreed on thee investment. The initiative aims to strengthenn the presence of Kenyan tea in the Asian market.
The company will focus on modernizing tea processing in Kenya, with a particular emphasis on orthodox tea production, which is increasingly popular in China. Orthodox tea, known for it’s rich and complex flavor, is produced through traditional methods involving plucking, withering, rolling, oxidizing and drying.
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This process helps preserve the tea leaf’s natural qualities, unlike the more commonly produced CTC (crush, tear and curl) tea, which is machine-processed and has a different taste profile.
Tea Board of Kenya CEO Willy Mutai said all KTDA managed tea factories will benefit from the investment.
“The first factories to benefit will be Mungania in Embu and Chebango, a privately run factory in Bomet,” said Mutai.
He noted that the partnership will help enhance the quality of locally produced tea and diversify its exports by aligning the tea industry to international standards.
As part of the deal, Benny Tea will establish orthodox tea processing plants in several tea-growing counties. Additionally, the company will be allowed to import tea packaging materials from China duty-free, a move expected to lower processing costs for local factories.
KTDA currently manages over 60 percent of Kenya’s tea production through 69 factories, supporting more than 650,000 smallholder farmers. Kenya remains one of the world’s leading black tea exporters, earning Sh250 billion from the crop last year. Of this, Sh215 billion came from exports, with the remainder generated from domestic sales.
Mutai added that global demand for orthodox tea is on the rise, with Kenya earning Sh181 billion from it last year. China ranked as the tenth largest importer, encouraging more local farmers to shift towards orthodox tea production.
During the International Tea Day celebrations on May 21, Agriculture Cabinet Secretary Mutahi Kagwe announced that the government will now allow tea factories to brand their products and sell directly to international buyers, bypassing the Mombasa auction. This move is expected to help farmers secure higher prices for their tea.
Additionally, the government intends to set up common user packaging facilities that will offer bulk tea packaging services to factories at a fee, as part of efforts to promote value addition in the sector.
