Kenya’s Tea Industry Expands with New Decaffeination Facility
Kenya is set to revolutionize its tea industry as it prepares to host Africa’s first decaffeination plant in Kwale. This groundbreaking project, spearheaded by Global Teas & Commodities, marks a significant shift in value addition for tea farmers in the country. The initiative, valued at Sh3.2 billion, aims to position Kenya as a global leader in tea processing.
Decaffeination is gaining traction worldwide due to shifting consumer preferences and growing health awareness. By establishing this facility, Kenya will not only increase its exports but also enable farmers to earn higher returns. Traditionally, raw tea has been exported to markets in Europe and Asia, where decaffeination occurs before resale at significantly higher prices.
According to Global Teas & Commodities’ Managing Director, Fahim Ahmed, this expansion will create employment, increase efficiency, and boost Kenya’s economy. The company has secured a 17-acre site in Kwale to set up the state-of-the-art facility.
Boosting Farmers’ Earnings Through Value Addition
Kenya’s tea farmers have long faced challenges in maximizing their earnings due to the lack of local processing facilities. By introducing a decaffeination plant, Global Teas & Commodities aims to bridge this gap and ensure that farmers receive the full value of their produce.
With the new facility, the company plans to increase its operations base from 50,000 square feet to 170,000 square feet. This will not only create more job opportunities but also contribute to social and economic development. The expansion aligns with the government’s agenda to enhance value addition in agricultural exports.
The project is also expected to attract international investors. As a result, the industry will experience improved efficiency, better quality products, and higher demand for locally processed tea.
A Game-Changer for Kenya’s Economy
Kenya’s tea sector has been a major foreign exchange earner, but it has been hindered by the high cost of exporting raw tea. The introduction of this facility will significantly reduce dependency on foreign processing plants and increase local revenue.
According to industry reports, the global demand for decaffeinated products is rising. The market is projected to grow from $3.1 billion in 2022 to $4.7 billion by 2028. This trend presents a lucrative opportunity for Kenya to become a key supplier in this segment.
By reducing reliance on international processors, Kenya will save millions of shillings in import costs. Additionally, the expansion is expected to contribute to sustainability by minimizing carbon emissions associated with shipping raw materials overseas.
Employment Creation and Environmental Sustainability
The decaffeination facility is expected to create over 600 direct jobs and thousands of indirect employment opportunities. Global Teas & Commodities already employs nearly 800 people at its Mombasa facility. The new plant will further expand its workforce, benefiting local communities.
In a bid to enhance sustainability, the facility will rely on solar energy as its primary power source. Water recycling and harvesting technologies will also be integrated to promote environmental conservation. The company has previously received the Queen’s Award for Enterprise in Sustainable Development, underscoring its commitment to responsible production.
By reducing reliance on imported tea products, the company will significantly cut down carbon emissions. The move aligns with global efforts to reduce the environmental impact of manufacturing and transportation.
Kenya’s Competitive Advantage in the Tea Industry
Kenya’s strategic location and expertise in tea production give it a competitive edge in the global market. With the introduction of a decaffeination plant, the country will strengthen its position as a leading tea producer.
The investment in Kwale will further enhance Kenya’s capacity to supply premium tea to international markets. Buyers who previously sourced decaffeinated tea from Europe and Asia will now have a reliable supplier in Africa.
Moreover, the availability of locally processed tea will improve branding and marketing opportunities for Kenyan tea farmers. The industry will benefit from increased foreign exchange earnings and expanded market access.
A Step Towards High-Tech Tea Processing
Currently, few decaffeination plants exist globally, and Kenya’s entry into this space is a bold step towards high-tech tea processing. The new facility will incorporate advanced technology to ensure efficiency and quality.
By moving its operations from Chai Street in Mombasa to Kwale, Global Teas & Commodities aims to enhance its production capacity. The facility will host packaging and bagging areas, catering to different markets across the world.
This move reflects a broader industry trend of increasing investment in value-added products. With Kenya’s reputation for high-quality tea, this expansion is expected to unlock new growth opportunities.
