Kenya moves to boost tea exports to Egypt with value addition, trade reforms 

KENYA – Kenya is reshaping its tea export strategy with a renewed focus on value addition to protect its largest market, Egypt, amid shifting trade conditions and foreign exchange challenges. 

The plan was unveiled during bilateral talks in Nairobi attended by Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe, Egyptian Ambassador Wael Nasreldin Attiya, and Kenya Tea Development Agency (KTDA) Group CEO Wilson Muthaura.  

It emphasizes packaging and branding Kenyan tea at source while creating distribution hubs in Cairo to strengthen market presence. 

According to Muthaura, the approach will enable farmers to secure higher prices, ensure more predictable incomes, and expand Kenya’s reach into the Middle East and North Africa (MENA) region.  

“Egypt remains our biggest market and safeguarding it through value addition ensures that Kenyan farmers earn fairer returns while positioning our tea competitively across the region,” he said. 

Egypt currently imports about 86.9 million kilograms of Kenyan tea annually, valued at nearly Kes 24 billion, representing 85 percent of its national supply. However, exports have dropped by 10 percent this year, with growers struggling due to Cairo’s foreign currency shortages.  

To address this, Kenya is advocating for direct government-to-government trade agreements to stabilize cash flows and shield farmers from currency fluctuations. 

The strategy aligns with reforms introduced under the Tea Act 2020, which established the Tea Board of Kenya to promote value addition. The Cairo distribution hubs are also expected to serve as entry points for Kenyan tea into broader MENA markets. 

Ambassador Attiya reaffirmed Egypt’s reliance on Kenyan tea, remarking, “No Egyptian starts their day without Kenyan tea.” He highlighted that deeper cooperation in food security and agro-processing would bring mutual benefits to both nations. 

Kenya’s tea industry generated Kes 215.21 billion in 2024, with exports accounting for more than 80 percent of revenues. 

Meanwhile, Kenya and Iran have formed a joint committee to resolve trade disputes and pave the way for lifting the current ban on Kenyan tea. Kagwe confirmed the committee will introduce strict regulations to curb malpractice in exports. 

Kenyan tea exports to Iran have grown from 3.2 metric tonnes in 2020 to 13 metric tonnes in 2024, with values rising from US$5 million to US$33 million. 

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