CS KAGWE CHAMPIONS LOCAL TEA PACKAGING TO BOOST COMPETITIVENESS AND FARMER EARNINGS

Agriculture Cabinet Secretary Mutahi Kagwe has urged international investors to embrace tea packaging in Kenya to enhance product value and deliver greater returns. Speaking at the North America Tea Conference in South Carolina, Kagwe commended the Kenyan government for scrapping taxes on packaging materials for agricultural products, a move that has made packaging more affordable.

He explained that the policy now enables exporters to package tea at the source in line with international market standards, ensuring direct-to-shelf products that guarantee freshness, traceability, and higher earnings for farmers. “Our government has taken deliberate steps to boost the competitiveness of Kenyan tea globally. By removing taxes on packaging materials, we are able to package tea locally according to market demands. This eliminates extra costs, enhances competitiveness, and strengthens Kenya’s position in the global tea industry,” he said.

Kagwe also celebrated Kenya’s continued dominance in tea production, noting that the country recorded an output of 598.47 million kilograms in 2024—representing a 4.95 percent increase from the previous year. He attributed the growth to favourable weather conditions, subsidised fertiliser programs, and expanded processing capacity.

The CS further highlighted Kenya’s diversification into Orthodox and speciality teas, stressing that the country is the only global producer of purple tea. Renowned for its antioxidant properties and health benefits, purple Orthodox tea commands three to four times the market price of black tea, offering farmers higher income.

“Kenya’s tea innovations not only improve farmer earnings but also position us as leaders in meeting changing global consumer preferences,” he noted. Kagwe underscored the cultural and environmental value of tea, describing it as both a source of livelihood and a crop that safeguards ecosystems by preventing soil erosion, conserving biodiversity, and capturing carbon.

He was accompanied at the conference by Tea Board of Kenya CEO Willy Mutai, KTDA Chair Geoffrey Kirundi and CEO Wilson Muthaura, alongside Kenya’s ambassador to the US, David Kerich.