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Available data shows that though aware of the immense benefit of value addition, stakeholders in the Kenyan tea trade value chain, buyers included still to a great extent engage in the trade of the commodity most of which is not value added. This has made the country to continue to register massive loss in much needed revenue yearly apart from loss of other attendant benefits such as job opportunities. Though some research has been done on aspects of value addition to tea, a majority have tended to concentrate on educating stakeholders on the importance of value addition to tea. Thus, there is sparse empirical data on factors that could be inhibiting large scale operationalization of value addition to tea in Kenyan tea value chain. A descriptive survey study of buyers of Kenyan tea registered with the Mombasa tea auction market was designed to help seal this research gap by assessing the inhibiting factors with specific focus on buyers due to their strategic distributive role in the Kenyan tea trade value chain. The study attempted to determine how market destinations affect value addition of tea within the tea industry, to determine how Government policy effects value addition to tea by stakeholders in the tea industry, to determine how strategic decisions affect value addition of tea, to determine how personnel skill affects value addition. A total of 39 out of 55 active buyers at the Mombasa tea auction market participated in the study. Data was collected using self-administered questionnaires to managers of the tea buying companies. Results showed that a majority of the companies were involved in value addition to tea on small proportions.It was also showed that there is a significant relationship between buyers’ strategic decisions, personnel skills and value addition to tea. Similarly, results showed that government policies, buyers’ strategic decisions and personnel skills influence value addition to tea positively. However, market destination was found to influence it negatively. It is therefore recommended that that buyers diversify market destinations, the government put in place mechanisms aimed at addressing its policies inhibiting value addition to tea and management of the tea buying companies deliberately formulate policies aimed at encouraging value addition to tea including providing incentives to their employees involved in value addition.

Factors Affecting Value Addition to Tea by Buyers within the Kenyan Tea Trade Value Chain