Chinese tea company to invest US$100m in Kenya

One of China’s largest tea companies, Benny Tea Industries, plans to invest US$100m in Kenya. Company chairman Zhang Chaobin recently met Kenyan President William Ruto in Nairobi to discuss opportunities for increasing the presence of Kenyan teas in the Chinese market.

Kenya is the largest exporter of black tea in the world generating US$1.4bn in 2024. The five largest importers of Kenyan tea by volume are Pakistan, Egypt, the UK, the UAE, and Russia, with Pakistan alone accounting for 34.7% of total imports. Demand for Kenyan orthodox tea – a premium, whole-leaf variety – has surged, with exports rising from $4.4 million in 2022 to $20.9 million in 2024. That growth has made China the tenth-largest destination for Kenyan tea exports.

Benny Tea’s investment will focus on modernizing Kenya’s tea processing, particularly in orthodox tea production, which is gaining popularity among Chinese consumers. Unlike CTC (Crush, Tear, Curl) tea – which is mass-produced using machines that process the leaves into pellets – orthodox tea is made using a more labour-intensive process that preserves whole leaves. The result is a higher-cost product with more nuanced flavour. This growing demand has encouraged more Kenyan producers to venture into orthodox tea production.

As part of the investment, Benny Tea will set up modern orthodox tea factories in selected tea-growing counties. Under the agreement, Kenya will also allow the company to import tea packaging materials from China tax-free, reducing costs for local producers and improving export competitiveness.

The announcement comes after Kenya recently announced a new policy that will allow local tea factories to sell directly to international buyers. Previously, local producers were required to sell through the Mombasa Tea Auction or via intermediaries. Direct market access would now allow producers to negotiate better prices, secure long-term contracts, and build stronger international brands.

Tea has been grown in Kenya for over a century, primarily in the highland regions. Production is carried out by a mix of large estates and smallholder farmers. The Kenya Tea Development Agency (KTDA) manages the production and processing of more than 60% of the country’s tea. It is owned by 54 tea companies, which in turn have about 600,000 smallholder farmers as shareholders. Together, these companies operate 69 processing factories, with KTDA providing services such as agricultural extension, transport, processing, and marketing.

Kenya hopes its partnership with China will enhance tea quality, diversify exports, and align its industry with international market demands. Benny Tea’s investment signals China’s growing interest in Kenyan tea, paving the way for stronger trade relations and long-term industry growth.

References

'China creates lucrative market for Kenyan tea', The Star, 20 February 2023

'One-way visits, uneven trade and surprising tea twists – 5 key facts about Kenya-China ties as Ruto visits Beijing', Africa Check, 23 April 2025

'Kenya grants tea factories direct access to int'l markets', Xinhua, 02 May 2025

'Government grants tea factories license to sell directly in international markets', The Star, 04 May 2025

'Kenya, China in talks to expand Kenyan tea access to Chinese market', Office of the President of the Republic of Kenya, 13 May 2025

'Kenya, China in talks to expand tea access to Chinese market', Citizen Digital, 14 May 2025

''Tea for two' as Kenya seeks to boost exports to China', Deutsche Welle, 21 May 2025

‘Kenya Tea Industry Performance Report - 2024’, Tea Board of Kenya, Accessed 26 May 2025

‘A global leader in quality teas’, Kenya Tea Development Agency Ltd., Accessed 26 May 2025