CS Kagwe urges global investors to package tea in Kenya for market appeal

Speaking at the North America Tea Conference in South Carolina, Kagwe heaped praise on the Kenyan government for expunging taxes on packaging materials for agricultural products, hence making it affordable. 

Further, he noted that the move allows Kenyan exporters to package tea at source according to international market specifications, delivering direct-to-shelf products with assured freshness, traceability, and better returns to farmers.

"Our government has also taken measures to make tea more competitive in global markets. We have removed taxes on packaging materials for agricultural products, allowing us to package tea at source according to market specifications," he stated. 

“By packaging at origin, we eliminate unnecessary costs, improve competitiveness, and strengthen Kenya’s position in the global tea market."

CS Kagwe also highlighted Kenya’s leadership in global tea production, noting that the country produced 598.47 million kilograms in 2024, a 4.95 per cent increase from the previous year. 

The growth, he emphasised, was driven by favourable weather, subsidised fertiliser programs, and expanded processing capacity.

In addition, Kagwe pointed to the diversification into Orthodox and speciality teas, boasting that Kenya is the only country in the world to manufacture purple tea. 

Celebrated for its health benefits and antioxidant content, he explained that purple Orthodox tea fetches three to four times the price of black tea, making it more beneficial for the farmers. 

“Kenya’s innovation in tea not only secures better earnings for farmers but also places us ahead in meeting shifting global consumer demands,” he added.

The Cabinet Secretary underscored tea’s environmental and cultural importance, describing it as both a livelihood and a crop that conserves ecosystems by preventing soil erosion, supporting biodiversity, and sequestering carbon.

Kagwe was accompanied by Tea Board of Kenya CEO Willy Mutai, KTDA Chair Geoffrey Kirundi and his CEO Wilson Muthaura, together with the Kenyan ambassador to the US, David Kerich.