Kenya and South Africa have agreed to remove trade barriers on tea and steel, a move expected to boost exports, strengthen bilateral trade, and support farmers under AfCFTA.

KENYA – Kenyan tea exports to South Africa are expected to increase significantly following an agreement between the two countries to remove trade barriers that had previously restricted market access.
The announcement was made during the Kenya-South Africa Business Forum attended by President William Ruto and business leaders from both countries, with South African President Cyril Ramaphosa confirming that earlier discussions had included potential restrictions on Kenyan tea imports.
“We also talked about how we can allow more Kenyan tea to come to South Africa and since Kenya had imposed a tariff on our steel, we in South Africa thought that we were going to reciprocate by putting barriers on tea that should come to South Africa,” Ramaphosa said.
He added: “Earlier today we said no, let’s stop this nonsense. Let’s bring down the deficit between us. We should not behave like some big countries in the world that punish other countries because of disparities in tariffs.”
Ramaphosa said the decision was intended to support farmers and strengthen regional trade under the African Continental Free Trade Area (AfCFTA).
“We cannot reciprocate on steel and tea, tea that is grown by small-scale farmers. I am saying to my people, let’s have a heart and allow tea from Kenya to come here in South Africa,” he said.
President William Ruto welcomed the agreement, stating that both countries have complementary economies that can drive continental growth through trade and investment.
He noted that Kenya remains a major exporter of tea, coffee, horticultural products and cut flowers, while South Africa is a leading industrial economy with strengths in manufacturing, mining, pharmaceuticals and financial services.
Bilateral trade between the two countries reached about 680 million dollars in 2025, highlighting significant but still untapped potential for expansion.
The agreement is expected to further strengthen tea exports from Kenya, which remains one of the world’s leading producers and a key foreign exchange earner supporting millions of livelihoods across the value chain.
Industry data shows that Kenya’s tea sector generated 218.79 billion shillings in 2025, with exports accounting for the majority of earnings.
Officials said the removal of barriers under the African Continental Free Trade Area framework is expected to boost intra-African trade and improve market access for producers across both regions.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.