Smallholder tea cultivation in Kenya commenced in the 1950s. In 1957, the first smallholder tea factory was set up in Ragati, Nyeri, in central Kenya, run through a management agreement with multinational tea companies. In 1960, the Special Crops Development Authority was established under the Ministry of Agriculture to oversee this crucial sector.

In 1964, the Kenya Tea Development Authority was established under the Agriculture Act (Cap 318) Section 91, Legal notice No. 42, replacing the Special Crops Development Authority. The Authority took over management of small holder tea from multinational tea companies.