Kenya’s tea export revenue drops 20% in Q1 2025 amid low production, market diversification efforts 

KENYA – Kenya’s tea export revenue fell by 20 percent in the first quarter of 2025, impacted by reduced production and lower shipment volumes, according to the Kenya National Bureau of Statistics (KNBS).  

The country earned Kes 46.07 billion (US$356 million) between January and March, down from US$446 million during the same period in 2024. 

The Tea Board of Kenya (TBK) attributed the decline to prolonged dry weather, which significantly affected tea output.  

Willy Mutai, TBK’s Chief Executive Officer, stated that production dropped by 21 percent in the east of the Rift Valley and 18.6 percent in the west during February. 

Tea is among Kenya’s leading foreign exchange earners, alongside tourism and horticulture. In response to declining revenues, the government and industry stakeholders are implementing strategic measures to stabilize the sector and explore new markets. 

Kenya is currently working to diversify its tea export destinations beyond key markets such as Pakistan, the United Kingdom, Russia, and Chad.  

Notably, the country has signed agreements with Chinese companies to boost tea exports to China from 12.2 million kilograms in 2024 to 50 million kilograms by 2030. This initiative is part of broader efforts to grow Kenya’s presence in the Asian market, particularly for orthodox and specialty teas. 

To enhance value addition and increase farmers’ income, the government recently waived taxes on packaging materials used in the tea sector.  

Cabinet Secretary for Agriculture and Livestock Development, Mutahi Kagwe, stated that this move would lower production costs and improve earnings for farmers. 

Kagwe also announced ongoing efforts to restore Kenya’s presence in the Iranian tea market while reinforcing its stronghold in Pakistan.  

In a further step towards export reform, the government has authorized all 142 tea factories to sell directly to international buyers, eliminating intermediaries to boost transparency and profitability. 

Additionally, the Kenya Tea Management Services (KTMS) confirmed that tea consignments previously held at the Port of Mombasa have been released and sold after the government lifted a temporary ban on direct exports. 

The Tea Board has directed all factories to submit reports detailing unsold tea stock and valuations as of April 30, 2025, with a compliance deadline of May 23. 

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