Kenya tea farmers earn US$424M from exports 

KENYA – Kenya’s tea farmers earned a cumulative KES 55 billion (US$424.02M) from exports during the first six months of 2026, underscoring the country’s continued dominance at the Mombasa Tea Auction despite growing debate over the impact of the recently introduced tea export levy. 

According to data cited by The Star, Kenya offered approximately 186.2 million kilogrammes of tea at the auction between January and June, far exceeding volumes supplied by neighbouring countries.  

During the same period, Uganda offered about 22.6 million kilogrammes, Rwanda 13.3 million kilogrammes and Tanzania slightly more than 300,000 kilogrammes. 

The figures reaffirm Kenya’s position as the leading supplier at the Mombasa Tea Auction, which serves as the primary trading hub for tea from East and Central Africa and remains the world’s largest auction for CTC tea. 

Auction records show that Kenyan tea fetched an average price of US$2.28 per kilogramme, equivalent to about KES 295 (US$2.27), across the first 24 auction sales of 2026. 

Tea Board of Kenya (TBK) Chief Executive Officer Willy Mutai attributed the sector’s performance to market fundamentals, maintaining that tea quality, supply and demand continue to determine prices and absorption rates rather than the recently introduced levy. 

“What determines the value of tea offered by a factory is the quality. The effect of the tea levy on the price is negligible,” Mutai said. 

He explained that global tea demand fluctuates depending on seasonal factors and economic conditions in major export destinations.  

According to Mutai, demand often rises during winter months and softens during summer, while geopolitical developments can also influence international buying patterns. 

Mutai noted that the long rains experienced between March and April boosted tea production, resulting in higher volumes being presented at the auction and affecting absorption rates. 

Despite the sector’s strong export performance, the 0.8 percent tea levy introduced on May 1 through the Tea (Levy) Regulations, 2026, continues to divide industry stakeholders. The levy is charged on the customs or auction value of exported tea and is intended to support marketing, research, value addition and infrastructure development. 

Factory directors, exporters and farmers, particularly from tea-growing regions east of the Rift Valley, have argued that the levy has increased operating costs and reduced the competitiveness of Kenyan tea in global markets. 

Some stakeholders have linked lower absorption rates to increased buyer interest in teas from neighbouring countries, particularly Rwanda, which continued to command premium prices during the first half of the year. 

Data shows Rwanda earned approximately KES 5.1 billion (US$39.32M) from tea sold at the auction despite offering significantly lower volumes. Rwandan tea achieved an average price of KES 386 (US$2.98) per kilogramme, compared with Kenya’s KES 295 (US$2.27). 

However, Mutai dismissed suggestions that Rwanda could replace Kenya’s market position. 

“The volumes offered by Rwanda are too small compared to Kenyan volumes, making it impossible for buyers to rely on it,” he said. 

According to TBK, Kenya’s market strength remains evident in improving absorption rates. During Sale 24, KTDA-managed factories recorded a 74 percent absorption rate, up from 60 percent during the corresponding sale last year, reflecting sustained demand for Kenyan tea. 

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