This report which is a result of partnership between the Kenya Institute for Public Policy Research and Analysis and the African Capacity Building Foundation analyses the institutional and human capacities of the tea value chain in Kenya. This is necessitated by the need to initiate transformative actions necessary for enhancing the sub-sectors productivity and contributions to national economic growth and development. The transformative agenda is also aimed at strengthening agribusiness trade and international competitiveness as envisioned in the Kenya Vision 2030. The objective of this study therefore was to identify capacity challenges that are critical in agribusiness and trade to enhance the competitiveness of the tea sub-sector. Specifically, to review national strategies, policies, practices and challenges with respect to agribusiness, trade and leadership. Secondly, provide sound situation analysis of the Kenya agri-business sector in relation to trade and leadership capacity. Thirdly, provide baseline data for assessing Kenyas capacity development progress and finally, assess and analyse the status and gaps of Public Sector Transformation Division (PSTD) and other relevant institutions capacity to implement the reforms in the tea value chain.