Kenya tea earnings hit Sh218.79bn as exports grow

NAIROBI, Kenya, Mar 3 – Kenya’s tea industry recorded a strong recovery in 2025, posting Sh218.79 billion in total marketed value, driven by reforms, market expansion, and improved earnings for farmers.

Speaking at Rukuriri Tea Factory in Embu during the release of the 2025 Tea Industry Performance Report, Agriculture Cabinet Secretary Mutahi Kagwe said the sector is back on a growth path despite global economic challenges.

Export earnings rose to Sh186.91 billion, with volumes reaching 652.8 million kilograms. Domestic sales also increased to Sh19.13 billion, lifting the overall value compared to 2024 and 2023.

Kenya expanded its export markets to 100 countries, up from 96 in 2024. Growth was recorded in key markets such as Pakistan and Egypt, alongside emerging destinations including Oman, Ireland, Japan, and Kazakhstan.

The recovery follows a difficult 2024 marked by oversupply and low prices, prompting a shift from volume-based exports to quality, value addition, and market diversification.

The government has introduced new regulations to improve traceability, accountability, and compliance, while addressing challenges such as middlemen exploitation and low-quality imports.

A 0.8 percent export levy has also been introduced to support marketing, research, and infrastructure, alongside a 100 percent levy on imported tea to protect local producers.

Meanwhile, the Tea Board of Kenya plans to launch a business-to-business e-commerce platform to link producers directly with global buyers.

The reforms aim to increase smallholder earnings from Sh59 per kilogram in 2022 to Sh100 by 2027, benefiting more than 834,000 farmers.

The 2025 performance signals a broader shift toward a more competitive and value-driven tea industry, with support from players such as KTDA Holdings Limited.