Kenyan Tea Industry Faces Viability Crisis Due to Low Prices and High Costs

The tea industry in Kenya is facing viability threats caused by low prices and high production costs. Farmers are appealing for major agricultural reforms under the Bottom-up Economic Transformation Agenda of the Kenya Kwanza administration. Anecdotally, a farmer in Nandi County stated that the green leaf price is currently Sh26 per kilo, which is barely enough to cover operational costs. Meanwhile, a farmer in Kisii county requested that buyers raise the pay to at least Sh50 per kilo.

The crisis centers on the viability of the tea value chain, which is a priority sector for the government. Farmers are asking for government intervention, such as the provision of subsidized fertilizer and the clearance of loans held by buyers. The industry's future hinges on these calls for support.