Kenya’s Njunu tea factory breaks ground on US$2.32M specialty tea plant
KENYA – Njunu Tea Factory has commenced the construction of a KES 300 million (US$2.32M) specialty tea processing plant to meet the rising demand for high-quality orthodox teas in local and international markets.
The groundbreaking ceremony marked a significant milestone in the factory’s efforts to diversify its product offerings and boost returns for its farmers.
Speaking at the event, Factory Chairman John Matheri highlighted the project’s phased implementation plan. The first phase, scheduled for completion by September 2025, will focus on installing automatic withering machines to enhance tea processing efficiency.
The orthodox manufacturing equipment will follow in subsequent phases, enabling the factory to produce specialty teas.
“Njunu joins other factories in manufacturing specialty teas, ready to venture into both local and international markets,” Matheri said, emphasizing the factory’s commitment to leveraging the growing global specialty tea market.
According to The Brainy Insights, the global specialty tea market, valued at US$6 billion in 2023, is projected to reach US$10.74 billion by 2033.
The new building will house both withering and orthodox manufacturing sections, combining efficiency with state-of-the-art technology to meet global production standards.
Factory Vice Chairman Maina Gathua called on the Tea Board of Kenya (TBK) to reinstate the minimum reserve price at the Mombasa Tea Auction, arguing it would protect farmers’ earnings.
“Our plea to the TBK is to reinstate the reserve price to safeguard the gains made for farmers. If there are challenges with teas from the west of the Rift, those can be resolved,” Gathua stated.
He also voiced concerns over the recent amendment to the Tea Act, which increased the management fee from 1.5 percent to 2 percent.
Gathua urged Parliament and TBK to engage in public consultations, stressing that the policy could harm the sector.
In response to industry challenges, Agriculture Principal Secretary Paul Ronoh announced government plans to reassess the 42 taxes affecting the tea sector to enhance competitiveness.
Measures under review include upgrading export scanning equipment and streamlining processes to reduce costs and improve efficiency.
Meanwhile, the Tea Board of Kenya has launched a five-year strategy to diversify export markets and reduce reliance on traditional buyers such as Pakistan and Egypt.
Additionally, a 21-member task force has been established to address the growing stockpile of unsold tea, estimated at 100 million kilogrammes.
The task force will examine issues ranging from the impact of the minimum reserve price to pricing disparities and the influence of private factories on market dynamics.
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