Kenya’s tea, coffee and sugar sectors have posted notable gains in production, acreage and earnings over the past three years, with the government proposing fresh funding to strengthen the three value chains in the 2026/27 financial year.
Treasury Cabinet Secretary John Mbadi, while presenting the 2026/27 Budget in Parliament on Thursday, said the improvements reflect the impact of government interventions aimed at boosting agricultural output and supporting farmers nationwide.
According to the budget statement, tea production rose to 550.4 million kilograms in 2025, up from 535.04 million kilograms in 2022. Export earnings also increased over the same period, reaching Sh187.1 billion compared to Sh163.3 billion.
Mbadi said the tea sector continues to play a critical role in export earnings and remains a key source of income for thousands of farming households.
In the coffee sector, the Treasury highlighted progress driven by a government programme focused on distributing seedlings to rehabilitate ageing plantations and expand acreage under cultivation.
A total of 85,000 coffee seedlings were distributed in the 2023/24 financial year, rising sharply to 809,710 in 2024/25, before increasing further to 3,127,769 in 2025/26. An additional 2,242,769 seedlings were distributed under the March–May 2026 long rains programme.
As a result, land under coffee cultivation expanded to 115,500 hectares in 2025, up from 109,385 hectares in 2022.
To sustain these gains, the Treasury has proposed Sh1.0 billion for the coffee seedlings programme in the next financial year. The allocation is intended to support continued seedling distribution and reduce production costs for smallholder farmers.
An additional Sh500 million has been proposed for the Coffee Cherry Revolving Fund to improve access to financing within the coffee value chain. The government has also allocated Sh2.0 billion for coffee debt waivers to ease financial pressure on farmers and cooperatives.
Mbadi said the interventions are expected to strengthen coffee production and improve returns for farmers across growing regions.
The sugar sector also recorded growth over the review period, according to the budget statement. Land under sugarcane cultivation increased by 19.4 per cent, while national sugar production rose to 815,454 metric tonnes in 2024 from 472,773 metric tonnes in 2022.
The growth comes as reforms in the sugar industry continue, aimed at improving efficiency and supporting farmers, millers and other stakeholders along the value chain.
To support these reforms, the Treasury has proposed Sh2.7 billion for the sugar sector in the 2026/27 financial year. Mbadi said the funds will help stabilise the industry and safeguard livelihoods dependent on sugar production and processing.
The gains across tea, coffee and sugar reflect broader improvements in agricultural performance, which the government links to the Bottom-Up Economic Transformation Agenda (BETA).
According to the Treasury, agriculture remains a cornerstone of the economy, supporting more than two-thirds of households through farming, employment and related activities.
It added that sustained investment in inputs, production systems and farmer support programmes has contributed to improved output across key value chains.
Mbadi told Parliament that agriculture remains central to the country’s economic growth strategy and food security efforts, noting that continued investment will help sustain production, raise farmer incomes and strengthen rural economies.
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