Ikumbi Tea Factory partners with Chinese Firm to enhance Orthodox tea production and export

KENYA—Ikumbi Tea Factory in Murang’a County, Central Kenya, has recently announced a partnership with the Chinese firm Ploy Intercontinental Trading Company Ltd to enhance the production and exportation of orthodox tea.

In this strategic move, the Ikumbi tea factory, located in Kigumo Sub County, has now become the latest KTDA-allied factory to embark on the production of orthodox tea.

This significant development was made public in the presence of key stakeholders, including Bai Junsheng, the representative of Ploy Intercontinental Trading Company Ltd., KTDA Board member Mr. James Githinji, and Mr. Onesmus Kibuna, the factory’s chairperson.

Ms. Peris Mudida, the acting CEO of the Tea Board of Kenya (TBK), was also present at the meeting.

In this collaborative effort, the Chinese-owned company will invest US$492.41 (Ksh. 75 million) to install an orthodox tea processing line capable of processing 2,000 kilos of the commodity daily.

Furthermore, as part of the agreement, the Chinese firm has committed to purchasing all the processed special tea.

A key consideration influencing this decision is the significant market demand for Kenyan tea in China, driven by the natural cultivation of Kenyan highland tea without the use of chemicals, as highlighted by Bai Junsheng.

Bai Junsheng underscored that China sources more than 100,000 metric tons of orthodox tea, and the decision to establish the Ikumbi tea factory was based on a comprehensive survey.

He elaborated that the survey revealed the high quality of green leaf produced by allied farmers and their intention to purchase all of the factory’s specialty tea.

Farmers and directors of the KTDA-allied tea factory welcomed the collaboration, anticipating an increase in income through the processing and sale of orthodox tea to overseas markets.

Mr. Githinji expressed optimism about the deal, stating that it signifies a significant partnership between Kenya and China with the potential to boost farmers’ earnings as Kenyan-produced tea penetrates the Chinese market.

He further emphasized that the Ikumbi tea factory’s new endeavour into specialty tea production aims to enhance farmers’ revenues, as Orthodox tea yields higher returns than standard black tea.

Orthodox tea, a distinct type processed through traditional methods involving plucking, withering, rolling, oxidation, and drying, produces loose tea leaves.

Mr. Kibuna stated that the agreed-upon price for a kilo of orthodox tea is US$89 (Sh1,221.28), which is more than four times the price of ordinary tea.

He urged farmers to enhance production and maintain the quality of the green leaf to meet the standards set by the Ikumbi factory.

During the announcement, Ms Mudida commended the Ikumbi factory’s leadership for exploring new avenues that contribute to increased income for local farmers.

Mudida also revealed that the Tea Board is actively seeking new markets in countries such as Canada, Germany, Poland, Saudi Arabia, the UAE, Iran, Iraq, Turkey, Japan, China, Ghana, and South Africa.

Ms Peris Mudida concluded by adding that tea generates US$1.037 billion (sh158 billion) in the country, with US$131.31 billion (sh20 billion) generated from local sales, highlighting the economic importance of Kenya’s tea business.

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