KTDA hails rising tea sales in 2025 despite production challenges

Group CEO Wilson Muthaura has said that amid falling global prices and high operational costs, the smallholder tea system model continued to display exceptional resilience, promising growth for farmers and the sector.

Speaking at the 2025 KTDA Directors Conference in Nairobi on Thursday, Mr Muthaura noted that disciplined operations enabled the Agency to deliver strong results even under immense pressure. 

"The task ahead is to convert this operational resilience into sustainable profitability," the CEO said.

Green leaf production dropped by 12.1% due to low rainfall, and made-tea volumes dipped by 11.55%. However, factories sold 319 million kilograms of made tea—a 10% increase from the previous year.

He emphasized that digital transformation will be central to KTDA’s revival and future growth amid an expected rollout of the Electronic Weighing System (EWS) Phase II across all 71 factories and the installation of 69 weighbridges have significantly reduced leaf collection inefficiencies.

The SAP system is also deepening transparency, data accuracy and real-time reporting. 

“Digital adoption is the heartbeat of our competitiveness. It empowers us to make faster, smarter decisions, ” he stated.

The CEO further highlighted ongoing farmer-centered sustainability efforts to benefit farmers, including the replacement of moribund tea bushes with climate-resilient cultivars, and income diversification through avocados, livestock and other ventures supported by the KTDA Foundation. 

KTDA’s membership in the UN Global Compact, he added, positions the organisation as a responsible, future-facing global player. 

Performance across KTDA subsidiaries was mixed, but with notable bright spots. 

Chai Trading experienced a decline driven by forex losses, while Ketepa made a strong turnaround from loss to profitability. 

KTDA Power posted higher profit before tax supported by new revenue streams, and Majani Insurance maintained stable performance. 

He also underscored KTDA’s strengthened governance framework, which includes tighter enterprise risk management, stronger audit processes and enhanced conflict-of-interest compliance. 

These measures, he said, are vital for protecting assets, building investor confidence and maintaining the trust of farmers. “Good governance remains our anchor,” he affirmed.

The annual conference brings together KTDA directors from across the country to set priorities and chart a unified strategic path for the year ahead.