Kenya allocates Kes 3.7 billion to modernise tea factories
President Ruto announced the investment to improve productivity and narrow bonus payment gaps for smallholder farmers.
The Kenyan government will invest Kes 3.7 billion (US$28.48M) to modernise tea factories and boost earnings for smallholder farmers, particularly in the West Rift region. President William Ruto announced the funding in Nyamira County, aiming to improve productivity and reduce the difference in bonus payments between farmers in the West and East Rift regions. The government has already released Kes 1.2 billion (US$9.24M), with an additional Kes 2.5 billion (US$19.24M) planned for the next financial year.
Ruto stated that the investment addresses challenges like delayed tea leaves at the Mombasa auction and ageing factory infrastructure that leads to operational inefficiencies. Farmers in the West Rift receive lower average prices, partly due to these issues and higher energy costs. A parliamentary committee inquiry confirmed significant price differences, with East Rift tea fetching US$2.95 per kilogramme compared to US$1.78 for West Rift tea during the 2024/25 financial year.
The western region produces about 70% of Kenya’s tea but faces lower-grade quality and higher production costs. The parliamentary committee recommended replacing old machinery, auditing local hydropower, and expanding market development. New legal frameworks were also called for to stabilise earnings and address structural inequalities within the tea industry.