Cabinet Secretary for Agriculture and Livestock Development Mutahi Kagwe has called for sweeping legislative reforms to stop the export of raw agricultural produce from Kenya, arguing that local value addition could unlock millions of jobs for young people and significantly boost farmers’ earnings.
Speaking during the International Tea Day celebrations at Momul Tea Factory in Kericho County, Kagwe challenged Parliament to enact laws that would compel processing and manufacturing within the country before agricultural commodities are exported.
According to the CS, Kenya has for decades continued exporting raw produce only for foreign countries to process, package and reap the greatest profits from products originally grown by Kenyan farmers. He said the practice has denied the country industrial growth, employment opportunities and stronger foreign exchange earnings.
Kagwe particularly singled out the tea sector, noting that Kenya remains one of the world’s leading tea producers, yet earns less than it should because much of its tea is exported in bulk form. He emphasized the need for factories and investors to focus on value-added products such as orthodox tea, green tea, purple tea, herbal blends, instant tea products and branded consumer packs targeted at international markets.
He noted that global consumer trends are increasingly shifting toward specialty and health-conscious tea products, creating a major opportunity for Kenya to diversify beyond traditional black tea exports. According to industry reports, value-added tea products fetch significantly higher prices in international markets compared to bulk tea sold through auctions.
The CS said strengthening local processing industries would not only improve returns to tea farmers but also stimulate manufacturing, logistics, packaging, marketing and export sectors across the economy. He argued that such reforms could help address the growing unemployment crisis among Kenyan youth by creating opportunities along agricultural value chains.
Kagwe defended the controversial Tea Levy Regulations 2026, saying the levy is intended to support strategic investments in tea marketing, branding, research and value addition programmes. He maintained that Kenya must invest aggressively in promoting its tea globally if it hopes to compete effectively with major tea-exporting nations such as India and Sri Lanka, both of which have heavily invested in branding and specialty tea markets.
At the same time, the CS criticized some tea factory directors for allegedly frustrating reforms through endless court battles. He accused certain leaders within the sector of reckless borrowing, poor governance and misuse of farmers’ funds, warning that such practices continue to undermine the sustainability of tea factories and deny farmers better returns.
His remarks come at a time when the government is intensifying reforms within the agricultural sector aimed at increasing accountability, improving farmer incomes and encouraging agro-industrialization.
Kagwe also challenged what he termed “familism” in Kenyan society, where older generations continue holding onto land while young people remain excluded from meaningful agricultural participation. He urged families to allow younger generations access to land and agribusiness opportunities, saying the future of Kenya’s agriculture depends on attracting youth into modern farming.
He stressed that agriculture should no longer be viewed as a last resort for the elderly or rural poor, but as a modern, profitable and innovation-driven industry capable of transforming livelihoods. The CS encouraged greater investment in agricultural technology, irrigation, mechanization and digital platforms that can make farming more attractive to the youth.
Kenya’s tea industry remains one of the country’s leading foreign exchange earners, supporting millions of livelihoods directly and indirectly. However, stakeholders have repeatedly raised concerns over declining farmer earnings, fluctuating global prices and overreliance on bulk exports.
The government now hopes that deeper reforms focused on value addition, governance and youth inclusion will reposition the sector for long-term sustainability and global competitiveness.
