Business

Boost for farmers, traders as Kenya permits sale of Rwanda's tea at Mombasa Auction

Head of Lipton Tea Estate in East Africa Sylvia Ten Den and Francis Itegi (who represented Investment and Trade CS Rebecca Miano). (Photo: Farhiya Hussein)

By Farhiya Hussein | Saturday, June 15, 2024

This initiative is expected to benefit many Kenyans directly and indirectly involved in the lucrative tea industry.

Farmers, transporters and traders within Kenya's tea supply chain have a significant reason to celebrate following a recent decision by the Kenyan government which permitted Lipton Teas and Infusions to sell Rwanda's Kibeho Garden Mark tea via the Mombasa Auction. The move is poised to boost the tea sector's total export earnings by 23 per cent.

This initiative is expected to benefit many Kenyans directly and indirectly involved in the lucrative tea industry. Lipton Teas and Infusions, which operates a vast 730-hectare tea plantation, will now enable Kenya and Rwanda to access a wider market and command higher prices through the Mombasa Auction, renowned globally for its variety and competitive pricing.

Sylvia Tinden, who heads Lipton Tea Estate in East Africa, expressed her excitement about the move. "We started the Kibeho Garden project in 2016, and it is thrilling to finally introduce it to Mombasa. Selling our tea in Kenya, particularly through the Mombasa Auction, will provide us with a cooperative environment and ensure we receive fair prices for our high-quality tea. This project has been taking care of 2,000 smallholders, and we aim to support at least 6,000 to 7,000 smallholders in the future. Partnering with the Rwandan government and organisations like the Wood Foundation has been vital in reaching this milestone."

Lipton Teas and Infusions permitted to sell Rwanda's Kibeho Garden Mark tea via the Mombasa Auction.

Chairman of the Tea Buyers Association, Peter Kimanga, also welcomed the development.

"We are delighted to see the Kibeho Mark from Rwanda being launched in Mombasa. Globally, consumers are upgrading to better quality tea, and Rwanda has been achieving high prices in Mombasa Auctions for the last four years. When we see producers bringing the quality tea that our markets demand, we applaud them. This move will create more employment and add value, benefiting everyone involved in the sector. Currently, we face a shortage of top-quality teas, and having a bigger variety at the Mombasa Auction is crucial."

Cabinet Secretary for Investment, Trade, and Industry Rebecca Miano highlighted the broader economic impact of Kenya's tea industry. "It is a cornerstone of our economy, employing over three million people directly and indirectly. The introduction of Rwanda's Kibeho Garden Mark into the Mombasa Auction will enhance cross-border trade and create substantial commercial opportunities for several industry players. Our government supports initiatives that promote high standards and sustainable practices, ensuring our tea remains a benchmark of excellence."

She added the collaboration between Kenya and Rwanda in promoting sustainable tea farming is crucial for the long-term health of our industry and environment.

"Let this event be a springboard for future projects and partnerships that will drive regional economic growth. I extend my deepest gratitude to Lipton Teas and Infusions for their investment and faith in our region's potential. I encourage all to support the Kibeho Garden Mark, confident it will make a significant market impact. Let us celebrate this milestone and look forward to future successes."

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