Kenya, Iran form joint committee to resolve trade dispute and lift tea export ban in 60 days
The two nations have agreed on strict new regulations to safeguard tea quality and restore confidence in exports.
KENYA – Kenya and Iran have established a joint committee to address trade disputes and work towards lifting the ban on Kenyan tea exports within the next 60 days.
The agreement was announced during the 7th Session of the Kenya–Iran Joint Commission for Cooperation (JCC), held in Nairobi and co-chaired by Prime Cabinet Secretary Musalia Mudavadi and Iran’s Minister of Agriculture, Dr. Gholamreza Nouri Ghezalcheh.
Agriculture and Livestock Development Cabinet Secretary Sen. Mutahi Kagwe confirmed that both countries will draft and implement strict regulations to prevent malpractice in tea exports, following a recent scandal that led to the suspension of trade.
The ban was imposed after investigations revealed that a Kenyan company, Cup of Joe Limited, had imported low-grade tea, blended it, and exported it to Iran as high-quality Kenyan tea. The company has since been deregistered. Before the suspension, Iran ranked among Kenya’s major tea importers.
Mudavadi noted significant growth in Kenyan tea exports to Iran in recent years, with volumes increasing from 3.2 metric tonnes in 2020 to a record 13 metric tonnes in 2024. Export values rose from US$5 million to US$33 million over the same period.
Pakistan remains Kenya’s top tea importer, accounting for 34.7% of total exports worth KES 70 billion, according to data from the Tea Board of Kenya.
Despite a price cap of US$2 per kilogramme for Kenyan tea (lower than the US$4.5 per kilogramme cap for Indian and Sri Lankan teas), exports to Iran have been on an upward trend.
Kagwe emphasised that safeguarding the integrity of Kenyan tea is essential for protecting one of the country’s largest foreign exchange earners. He said the introduction of tighter export controls would ensure only premium-quality tea reaches foreign markets.
The embargo has had a considerable financial impact on Kenyan tea farmers and exporters, heightening calls for a swift resolution.
The newly formed joint committee will design a framework to restore trust, enforce quality assurance, and enable the resumption of tea shipments within the set 60-day period.
The JCC meeting also allowed Kenya and Iran to review their expanding bilateral relationship and explore cooperation in climate-smart agriculture, manufacturing, transport and infrastructure, education and training, customs coordination, and renewable energy development.
Mudavadi reaffirmed Kenya’s role as a strategic trade gateway to East Africa and beyond, encouraging Iranian businesses to invest in the Kenyan market while urging Kenyan entrepreneurs to seize opportunities in Iran’s economy.
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