Kenya tea industry rebounds to US$1.68B in 2025 amid reforms, market expansion 

KENYA – Kenya’s tea industry recorded a strong recovery in 2025, posting a total marketed value of Sh218.79 billion, driven by sector reforms, market expansion, and improved farmer earnings.  

Speaking at Rukuriri Tea Factory in Embu during the release of the 2025 Tea Industry Performance Report, Agriculture Cabinet Secretary Mutahi Kagwe said the sector is firmly back on a growth path despite global economic challenges.  

“This performance is not accidental. It is the result of deliberate reforms, market expansion, and a renewed focus on quality and value addition under the Bottom-Up Economic Transformation Agenda,” said Kagwe.  

The strong performance comes amid a challenging global environment marked by the lingering effects of the Russia-Ukraine war, conflicts in Sudan and Yemen, and ongoing currency pressures affecting trade.  

Export earnings rose to Kes 186.91 billion, supported by increased volumes of 652.8 million kilograms. Domestic sales also improved, reaching Kes 19.13 billion (US$146.84M), contributing to overall growth compared to 2024 and 2023.  

Kenya expanded its export reach to 100 countries, up from 96 markets in 2024. Growth was recorded in key destinations such as Pakistan and Egypt, alongside emerging markets including Oman, Ireland, Japan, and Kazakhstan.  

The recovery follows a difficult 2024 characterized by oversupply and depressed prices, which prompted a strategic shift toward quality improvement, value addition, and market diversification.  

To support the sector, the government has introduced new regulations aimed at improving traceability, accountability, and compliance, while addressing long-standing challenges such as middlemen exploitation and the influx of low-quality imports.  

A 0.8 percent export levy has been introduced to fund marketing, research, and infrastructure development, alongside a 100 percent levy on imported tea to protect local producers. Kagwe emphasized that the levy will not burden farmers.  

“For too long, Kenya has produced some of the best tea in the world but invested too little in marketing it. That changes now,” he said.  

Meanwhile, the Tea Board of Kenya is set to launch a business-to-business e-commerce platform designed to connect producers directly with international buyers, improving market access and transparency.  

The reforms aim to increase smallholder earnings from Kes 59 per kilogram in 2022 to Kes 100 (US$0.77) by 2027, benefiting more than 834,000 farmers across the country.  

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