KTDA seeks Treasury loan to set up specialty tea lines

Kenya Tea Development Agency (KTDA) is seeking a loan from the Treasury for establishment of 10 specialty lines on its existing factories to cut overreliance on black tea whose prices are relatively low compared with orthodox teas.

The move, which is part of the reforms in the tea sector, is aimed at increasing production and sale of orthodox tea to boost the financial performance of the tea factories and returns to the tea growers.

KTDA has 12 factories that have dedicated lines for orthodox tea. The production of black tea in these processing units runs parallel with the specialty variety.

“In order to boost production of orthodox teas, whose returns are much higher than that of CTC teas, KTDA intends to install orthodox processing lines in 10 factories across the tea growing regions,” said Agriculture Cabinet Secretary Peter Munya.

“Towards this end, KTDA has requested for a loan or grant from the government,” he added.

However, both the government and KTDA did not disclose the amount of money that is being requested for the exercise.

The agency has been producing close to five million kilogrammes from the factories where the special processing lines for this tea have been installed.

The Tea Board of Kenya has been targeting the volumes of specialty tea to rise by 10 percent of total production.

Kenya has been promoting specialty teas manufacturing and increasing consumer awareness on innovative tea products with the easing of rules in production of this variety.

For instance, the regulator reduced the acreage required to license a tea factory from 250 hectares previously to 20 hectares for specialty tea products.