Tea Board of Kenya orders stock disclosure amid falling export prices

KENYA – The Tea Board of Kenya (TBK) has directed all tea factories in the country to submit detailed reports of their unsold tea stocks and corresponding valuations as of April 30, 2025.  

This move comes in response to the sustained drop in export prices, which has raised alarm over the potential impact on the livelihoods of tea producers, particularly smallholder farmers. 

In a circular issued on May 12, 2025, TBK Chief Executive Officer Willy Mutai confirmed that the Ministry of Agriculture and Livestock Development is concerned about the continued decline in international tea prices and its potential economic consequences.  

Mutai noted that depressed prices pose a threat to the earnings of tea factories and growers. 

“The Ministry of Agriculture and Livestock Development has expressed concern regarding the depressed prices for Kenyan teas destined for export and the negative effect this may have on the income of factories and earnings for tea producers, especially smallholder farmers,” stated Mutai. 

The directive follows a recent stakeholders’ meeting, where industry participants agreed on the importance of assessing the scale of unsold tea inventories and their current market value.  

TBK aims to use the submitted data to measure the severity of the problem and develop potential interventions to support the sector. 

All factories have been given until May 23, 2025, to comply with the directive. 

In July 2024, an estimated 100 million kilos of tea were reported to be lying unsold in warehouses operated by the Kenya Tea Development Agency (KTDA) in Mombasa.  

Kenya, a top global tea exporter, has faced persistent challenges due to unstable global prices, affecting the earnings of farmers despite increasing production costs. 

To support the industry, the government has allowed KTDA factories to sell their tea directly to international buyers.  

In addition, the recent removal of taxes on packaging materials is expected to enhance local value addition and branding. 

“Kenyan tea no longer needs to be exported to Dubai for packaging. With the tax on packaging materials removed, factories can now add value locally and enhance the market appeal of Kenyan tea,” Agriculture Cabinet Secretary Mutahi Kagwe stated. 

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