Kenya tea farmers could soon be allowed to sell their produce directly to international buyers in what Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe says is expected to improve earnings.
According to the data by the Tea Board of Kenya, more than 60pc of Kenya’s tea is sold through auction monthly.
Speaking in Nyeri County during the International Tea Celebrations in Nyeri County, Kagwe said the move to allow direct tea sales on the international market is part of reforms by the government to promote and diversify Kenyan tea.
“Am also happy to report that, shortly through reforms being spearheaded by my Ministry; we will soon be allowing tea factories to sell their teas directly into the international markets without intermediaries. This strategy will augment Government of Kenya Marketing efforts, therefore translate to increased earnings to our tea farmers,” said Kagwe.
According to TBK, in January alone, Kenya sold 33.4 million kilograms of tea through auction out of total production which stood at 54.4 million kilograms.
The government also plans to unveil an orthodox tea auction window within the Integrated Tea Trading System (ITTS) in June this year in collaboration with the the East African Tea Association (EATTA) and TBK. This is expected to allow for sale of orthodox teas globally.
“The orthodox tea auction will set the stage for a reliable distribution outlet that is expected to enhance renewed impetus to sustainable product diversification from Cut, Tear and Curl i.e. (CTC teas) to orthodox teas,” Kagwe stated.
As part of its diversification strategy, the country is also eying new international markets in the Far East, Middle East, China, Russia and India.
Kenya saw an increase in tea export destination in January this year as markets grew to 61 compared to 58 during the same period last year.
