Prime Africa News – The Kenya Tea Development Agency (KTDA) has projected renewed optimism for the smallholder tea sector despite navigating one of the most turbulent years in global commodity markets.
Speaking during the 2025 KTDA Directors Conference at Safari Park Hotel, Group CEO Wilson Muthaura said the sector had demonstrated extraordinary resilience in the face of falling international tea prices, a strengthened shilling, reduced rainfall, and surging operational costs.
Muthaura noted that green leaf production fell by 12.1%, while made-tea output declined by 11.55% due to erratic weather patterns. Despite this, smallholder factories maintained stable performance thanks to tighter controls, improved efficiencies and disciplined operations.
“This is the strength of the smallholder system,” Muthaura said. “Disciplined operations and optimized processes enabled us to deliver strong results even under immense pressure. The task ahead is to convert this operational resilience into sustainable profitability.”
He added that adversity had provided clarity for KTDA’s next chapter:
“Our focus remains firm—stabilize performance, enhance operational efficiency and unlock new, reliable revenue streams for the long-term.”
The CEO underscored that technology will anchor KTDA’s turnaround. The rollout of EWS Phase II across all 71 factories and installation of 69 weighbridges have curbed leaf-collection losses, while the SAP enterprise system is boosting transparency, data integrity and real-time decision-making.
“Digital adoption is the heartbeat of our competitiveness. It empowers us to make faster, smarter decisions,” he said.
KTDA’s subsidiary companies recorded varied performance, though several posted significant gains:
-
Chai Trading: Declined, largely due to forex-related losses.
-
Ketepa: Rebounded strongly from loss-making territory to profitability.
-
KTDA Power: Delivered higher profit before tax, supported by diversified revenue streams.
-
Majani Insurance: Maintained stable performance despite market pressures.
Muthaura emphasized that synergy and diversification will be central to KTDA’s future, calling them “strategic imperatives that will define our next phase.”
KTDA is also investing heavily in human capital as part of its modernization push. Efforts include upgrading digital capabilities, strengthening leadership development, and tightening accountability and performance systems across the organization.
“These investments are reshaping KTDA into a modern, agile and farmer-centric organisation,” he said.
As the global tea market remains uncertain, KTDA is betting on innovation, efficiency and people-driven transformation to secure long-term stability for Kenya’s millions of smallholder farmers.
About The Author
