Kenya to boost tea, coffee earnings through large-scale value addition before export
Government unveils plan to process tea and coffee locally, aiming to increase earnings and global market competitiveness.
KENYA – Kenya’s tea and coffee farmers are set to earn more from their produce as the government moves to implement large-scale value addition before export.
Agriculture and Livestock Development Cabinet Secretary Mithika Linturi said foreign nations currently benefit more from Kenyan tea and coffee by processing them before re-exporting to international markets.
He spoke during a fact-finding visit to the Dubai Multi-Purpose Commodity Center (DMCC) in the United Arab Emirates, where a significant portion of Kenyan tea and coffee undergo value addition before reaching global consumers.
“I am impressed by the expertise and professionalism in the value addition of products here, especially Kenyan tea and coffee,” Linturi noted.
The government plans to establish Special Economic Zones (SEZs) at Dongo Kundu in Mombasa to process tea and coffee locally before export. Linturi said the initiative will transform the sub-sectors, boost manufactured exports, and contribute to food security.
Kenya is the world’s leading exporter of tea, accounting for 28% of global tea exports. However, earnings remain relatively low compared to other major producers.
Linturi stated that the Ministry of Agriculture aims to grow agricultural GDP from KSh2.9 trillion to KSh3.9 trillion by promoting diversification and value addition along agricultural value chains.
Reforms in the tea sector began in early 2025 to enhance competitiveness in global markets. While Kenya leads in export volumes, revenues trail behind key Asian competitors.
In 2024, the country exported 625,558 tons of tea, surpassing China’s 374,118 tons and Sri Lanka’s 243,168 tons. Yet, Kenya earned US$1.4 billion—slightly below China’s US$1.41 billion and nearly equal to Sri Lanka’s earnings.
The difference lies in pricing: Sri Lankan tea averages US$5,793 per ton, Chinese tea US$3,794, and Kenyan tea just US$2,252 per ton.
To address this disparity, the Ministry announced trade missions to key global markets in May 2025, aiming to strengthen Kenya’s international presence and secure new buyers.
On May 6, the government also introduced a tax exemption on tea packaging materials to lower production costs—a major obstacle to local processing and packaging. Officials believe these measures will create opportunities for higher earnings and better market positioning.
Linturi emphasized that value addition at scale will not only increase farmer incomes but also raise Kenya’s global brand value in tea and coffee exports.
The strategy is expected to reduce reliance on bulk exports and position Kenyan produce among premium offerings worldwide.
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