Equity Bank has unveiled an ambitious plan to help tea farmers in Kericho and Bomet access premium international markets.
The lender says the strategy will focus on value addition, specialty tea processing, origin branding and direct links with international buyers.
The initiative forms part of the bank’s effort to strengthen agricultural value chains and create sustainable export opportunities for Kenyan farmers.
Equity Eyes Premium Global Markets for South Rift Tea
Speaking during a customer engagement tour of Kericho and Bomet counties, Moses Nyabanda, Managing Director of Equity Bank Kenya, said the bank is working to connect farmers directly with global buyers through structured offtake agreements.
The model seeks to move farmers away from selling tea through the auction market, where prices remain relatively low, and toward specialty tea exports that can attract premium prices.
According to Nyabanda, tea currently sold through the auction system fetches about $2.30 per kilogram.
However, a pilot initiative the bank undertook in Murang’a showed that significantly higher earnings are possible when tea is processed, branded, and sold directly to international consumers.
The pilot involved a local tea factory that successfully accessed retail markets in France and reportedly earned up to ten times the value of tea sold through conventional channels.
The bank believes tea-growing regions such as Kericho and Bomet have strong potential to replicate the model because of their favorable climate and reputation for producing high-quality tea.
“Tea that you sell now at the auction fetches about $2.30 a kilo. We have been able to work with a tea factory in Murang’a as a pilot, placing specialty tea directly in the retail markets in France,” said Nyabanda.
Murang’a Purple Tea Deal Inspires South Rift Expansion
Equity facilitated an agreement between Gatanga Industries Limited and French specialty tea retailer Palais des Thés during the Africa Forward Summit.
The partnership elevated Kenyan purple tea onto the international stage. In June, Murang’a purple tea was unveiled at Hôtel de Crillon in Paris, one of France’s most renowned luxury establishments.
The tea’s reputation grew further after chefs from the Élysée Palace used Kenyan Grand Cru tea, selected by Palais des Thés, to create infused dark chocolate served during the G7 Summit.
The success of the Murang’a export deal has become a blueprint for the bank’s latest efforts in South Rift.
Equity executives recently toured key tea-processing facilities in the region, including Ndarawetta Tea Factory in Bomet County and Ernestea Factory in Kericho County.
The two facilities produce specialty and orthodox tea varieties that the bank believes can compete successfully in premium international markets.
The bank is also championing the use of Geographical Indication (GI) and origin branding, which allows agricultural products to set higher prices by linking them to unique production regions and quality characteristics.
Equity Group Chief Executive Officer Dr James Mwangi previously argued that Kenyan tea requires stronger geographical identity and differentiation to transition from a commodity product into a premium global brand.
Diversification, Technology and New Export Opportunities
Beyond tea, Equity is rolling out a broader agricultural transformation agenda focused on diversification and climate resilience. The lender is promoting investments in coffee, avocado and other high-value crops while offering crop insurance products designed to protect farmers against weather-related shocks such as droughts and floods.
Nyabanda said the bank’s objective is to de-risk agricultural production while supporting farmers to access more profitable markets. The lender is targeting value-added agricultural enterprises that can supply both regional and international consumers.
Farmers and agribusiness investors welcomed the initiative but emphasized the need for greater investment in technology.
Caleb Mutai, representing a coffee cooperative in Bomet, called for increased financing for modern agricultural equipment, arguing that improved technology is critical for competitiveness and productivity.
The diversification drive is already gaining traction. John Osiemo Momanyi, Director of Avelax Coffee Services, said Equity financing had enabled him to establish a certified coffee nursery and coffee pulping station. He is now seeking additional capital to expand into packaging and branding operations.
In addition to targeting the European market, Equity is also utilizing its regional footprint to connect agribusinesses with buyers in neighboring markets such as Uganda and the Democratic Republic of Congo.
Follow our WhatsApp Channel and X Account for real-time news updates.
Comments
No comments yet. Be the first to share your thoughts.