Kenya aims to boost farmer incomes by expanding orthodox tea production and increasing its presence in the global orthodox black tea market. Photo credit: Tea Board of Kenya
Kenya, the world’s largest exporter of black Cut Tear Curl (CTC) teas, officially enters a new era with the launch of its first dedicated Orthodox Tea Trading Window at the Mombasa Tea Auction. The historic initiative aims to diversify the country’s tea exports, capture premium global markets, and increase farmers' incomes.
The launch ceremony was presided over by Cabinet Secretary for Agriculture, Mutahi Kagwe, alongside Tea Board of Kenya (TBK) Chairman Ndung’u Gathinji, CEO Willy Mutai, and East African Tea Trade Association (EATTA) Managing Director George Omuga, among other dignitaries.
“Today, as we launch the auction of orthodox teas, we are not just selling tea; we are making history,” Kagwe declared. “Kenya is no longer just a CTC powerhouse — we are now a serious and competitive player in the global orthodox tea market.”
Modernizing the Auction Hub
Kagwe emphasized that the reforms go beyond a new auction window. The Mombasa Tea Auction, long regarded as the beating heart of the global CTC trade, is transitioning to a fully online platform, enabling buyers from around the world to participate in real time. “This will enhance price discovery, reduce cartels, and firmly position Kenya as a modern, efficient tea-trading hub,” he said.
Supporting this transition, TBK has also established a Tea Quality Assurance Laboratory in Mombasa. The lab will provide real-time advisory services, product testing, and food-safety certification — critical for meeting the stringent standards of international specialty markets and strengthening Kenya’s reputation as a producer of premium teas.
Orthodox Offers New Avenues
“The inaugural orthodox auction reported an impressive 90% absorption rate, with prices outpacing those of CTC teas,” said George Omuga, managing director of EATTA, which organized the event.
Omuga noted that the introduction of orthodox teas marks a milestone for African producers seeking to diversify both products and markets. Overreliance on CTC production has created an imbalance between supply and demand, resulting in depressed returns for farmers. “The diversification into orthodox and other specialty teas is done with the objective of creating supply-demand equilibrium for black CTC, diversifying export markets, mitigating risks, and improving farmer incomes,” Omuga explained.
He also emphasized that African producers are eager to collaborate with governments on joint marketing campaigns to increase demand for orthodox teas globally. The highest price at the inaugural auction reached $4.82 per kilo.
Growth Targets and Market Potential
While Kenya’s dominance in CTC teas is unmatched — it exports more than 450 million kilos annually — the orthodox segment remains relatively small. In 2024, orthodox production fell to 7.51 million kilos from 12.34 million the previous year, primarily due to disruptions in the Iranian market, once a major buyer. Of this, around 5 million kilos were exported.
Yet the price advantage is clear. orthodox teas averaged $3.70 per kilo in 2024, compared to just $2.28 per kilo for bulk CTC teas sold in Mombasa. For farmers, the higher returns highlight the potential of orthodox teas to provide stability against volatile CTC markets.
The government is betting heavily on this shift. Installed orthodox capacity is projected to expand from 15 million kilos in 2024 to 200 million kilos by 2030. TBK has already licensed 22 orthodox manufacturers and plans to double the number to 42 by 2027. The inaugural auction featured 2,925 packages — equivalent to nearly 92,000 kilos — marking what Kagwe described as “the first of many consignments that will connect farmers directly to premium buyers.”
Challenges and the Road Ahead
Despite optimism, challenges loom. Restoring tea exports to Iran remains a priority, with government talks underway to reopen the market. Kenya must also carve out space in highly competitive orthodox markets dominated by India, Sri Lanka, and China. Building capacity will require heavy investment in new machinery, farmer training, and brand marketing.
Nevertheless, Kenya holds strong cards — its year-round production, global reputation for quality, and strategic logistics hub in Mombasa. Industry leaders believe these advantages will help Kenya secure a foothold in emerging specialty markets in Asia, Europe, and the Gulf.
A Turning Point for Kenyan Tea
For decades, Kenya’s identity in the global tea trade has been tied almost exclusively to bulk CTC teas used in blends worldwide. The launch of the Orthodox Tea Auction marks an intentional pivot — aligning the country with global trends that favor specialty, artisanal, and traceable teas.
“Orthodox production will enable us to capture the ever-changing global market,” Kagwe said. “This diversification will mean more money in farmers’ pockets, greater resilience, and new revenue streams. It is a new chapter for Kenyan tea.”