NAIROBI, Kenya, Sept 6 – Mt. Kenya Tea Factory has been placed under administration, effective September 3, 2025, following Insolvency Cause No. IP E049 of 2025 under the Insolvency Act No. 18 of 2015.
The court has appointed PVR Rao and Swaroop Rao Ponangipalli as Joint Administrators, transferring all operational control from the directors to the administrators.
“All the affairs and business of the Company are being conducted by the Joint Administrators whose powers extend to all assets and undertakings of the Company,” the notice read in part.
“The powers of the Directors in terms of dealing with the Company’s assets ceased.”
Kenya’s tea industry is currently grappling with challenges spanning climatic stress, weak global pricing, and pressing structural issues.
In April 2025, for example, tea output fell by 3.85 percent compared with 2024, driven by low rainfall in key growing regions.
April saw auction sales decline to 33.91 million kilograms, with the average price dropping to $2.09 per kilogram, a steep slide from $2.29/kg year-on-year.
The downturn continued with January–March 2025 volumes dropping sharply from 2024 levels, with April seeing further contraction.
By June, production had slumped by over 8 percent, reaching 42.4 million kilograms, hampered by prolonged dry conditions affecting particularly smallholder areas.
In the first half of 2025, Kenya’s tea export earnings fell by 12.1 percent, from Sh102.47 billion to Sh90.12 billion. Export volumes also dipped, reaching 315,036 tonnes compared to 320,564 tonnes in 2024.
Parties with claims against the company have been asked to submit detailed documentation by September 30, 2025.
