KTDA Achieves Strong Tea Sales in 2025 Despite Global Market Challenges, Boosting Smallholder Farmers and Digital Growth

The Kenya Tea Development Agency (KTDA) posted strong tea sales in 2025. The year was tough in global markets. Group CEO Wilson Muthaura said the smallholder tea system showed exceptional resilience. Farmers and the sector continued to grow despite falling prices and rising costs.

Speaking at the 2025 KTDA Directors Conference in Nairobi on Thursday, Muthaura praised disciplined operations. He said they helped deliver solid results under pressure. “The task ahead is to convert this operational resilience into sustainable profitability,” he added.

Green leaf production fell by 12.1% due to low rainfall. Made-tea volumes dropped 11.55%. However, factories sold 319 million kilograms of made tea. This was a 10% increase from last year. Muthaura said digital transformation is key to KTDA’s growth. The Electronic Weighing System (EWS) Phase II is rolling out across 71 factories. Sixty-nine new weighbridges have cut inefficiencies in leaf collection.

The SAP system is improving transparency, real-time reporting, and data accuracy. “Digital adoption is the heartbeat of our competitiveness. It helps us make faster, smarter decisions,” he said.

Muthaura also highlighted farmer-focused sustainability programs. Old tea bushes are being replaced with climate-resilient varieties. Farmers are diversifying income through avocados, livestock, and other ventures supported by the KTDA Foundation. KTDA’s UN Global Compact membership positions it as a responsible global player.

Performance across subsidiaries varied. Chai Trading faced losses due to forex issues. Ketepa rebounded from losses to profitability. KTDA Power posted higher pre-tax profits with new revenue streams. Majani Insurance remained stable.

The CEO stressed strong governance. KTDA has tighter risk management, stronger audits, and improved conflict-of-interest compliance. “Good governance remains our anchor,” he said. It protects assets, builds investor confidence, and keeps farmers’ trust.

The annual conference brings together KTDA directors from across Kenya. They set priorities and chart a unified path for the year ahead. The smallholder tea sector aims to thrive despite global market pressures.