Global Tea & Commodities to establish Africa’s first decaffeination facility in Kenya 

KENYA – Global Tea & Commodities Limited, a leading integrated tea processor, is set to construct Africa’s first decaffeination facility in Kwale County, Kenya.  

The Kes3.2 billion (US$24.76M) investment will mark a significant milestone in the country’s tea industry and is expected to enhance value addition for Kenyan tea and coffee, boosting earnings for farmers and the economy. 

The facility, which will be the sixth of its kind globally, will be located on a newly acquired 17-acre plot.  

According to Fahim Ahmed, Managing Director of Global Tea & Commodities Kenya, the project aims to more than triple the firm’s operations, expanding the production space from 50,000 square feet to 170,000 square feet.  

This expansion is expected to create over 600 direct jobs and millions of shillings in economic value. 

“The decaffeination facility will see us execute high-level value addition to locally grown tea and coffee, increasing returns and contributing to the socio-economic growth of the country,” Ahmed said. 

The facility will remove caffeine from tea leaves and coffee beans, a process increasingly demanded globally due to rising health-consciousness and shifting consumer preferences.  

Decaffeinated products have seen growing popularity, with the global market projected to grow from US$3.1 billion in 2022 to US$4.7 billion by 2028, at a compound annual growth rate (CAGR) of 7.3%, according to a BCCResearch study. 

Traditionally, Kenya has exported raw tea and coffee to Europe and Asia, where decaffeination and other value addition occur. These products are then sold at nearly 10 times the value of the raw materials.  

By establishing a local decaffeination plant, the country aims to retain more economic value and increase returns for its farmers. 

The facility will include advanced loose tea packaging and bagging areas tailored for various global markets. 

It will also feature eco-friendly measures, including solar energy as the primary power source, water recycling systems, and modern water harvesting technologies, ensuring a green operational approach. 

Ahmed also revealed plans to move the company’s operations from Chai Street in Mombasa, where it has been based for nearly 30 years, to the new facility.  

This will decongest our operations and create a more conducive working environment for employees,” he added. 

In addition to operational improvements, the company plans to establish social amenities, including health and education facilities, to benefit its employees. 

Global Tea & Commodities, the producer of Kericho Gold Teas and Baraka Chai, has consistently ranked as the largest buyer at the Mombasa auction, accounting for nearly 15 percent of total purchases over the past decade. 

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