Kenya’s tea industry is set for a major transformation following a landmark Sh13 billion investment by Chinese firm Benny Tea, one of China’s largest tea companies. The move, confirmed after a recent meeting between Benny Tea Chairperson Zhang Chaobin and President William Ruto in Nairobi, is aimed at boosting Kenya’s orthodox tea production and expanding its presence in the Asian market.
Orthodox tea, produced using traditional methods such as plucking, withering, rolling, oxidising, and drying, differs significantly from the widely consumed CTC (crush, tear, curl) tea. Renowned for its rich aroma, delicate flavour, and higher market value, orthodox tea is gaining popularity globally, especially in China.
Benny Tea’s investment will modernise Kenya’s tea processing capacity by establishing orthodox tea plants in several tea-growing counties. The company will also benefit from tax-free importation of tea packaging materials from China, lowering processing costs for local factories. The first beneficiaries of this partnership will be Mungania Tea Factory in Embu and Chebango Factory in Bomet.
According to Tea Board of Kenya CEO Willy Mutai, all KTDA-managed factories will eventually benefit from this investment. The Kenya Tea Development Agency (KTDA) oversees 69 factories and supports over 650,000 smallholder farmers, accounting for over 60 percent of Kenya’s tea production.
The move comes as demand for orthodox tea continues to rise globally. Last year, Kenya earned Sh181 billion from orthodox tea alone, with China emerging as the tenth largest importer. In total, the tea sector brought in Sh250 billion, with exports accounting for Sh215 billion. Pakistan remains Kenya’s largest tea market, followed by Egypt, the UK, UAE, and Russia.
Agriculture Cabinet Secretary Mutahi Kagwe recently announced new policies allowing tea factories to brand and sell their produce directly to international buyers, bypassing the Mombasa auction to fetch higher returns. Additionally, the government plans to establish common user packaging facilities to promote value addition and diversify exports.
This investment signals a new era for Kenya’s tea sector, positioning it to tap into lucrative international markets and uplift thousands of small-scale farmers.
