Kenya’s tea exports surpass 102M Kgs amid sector reforms  

KENYA – Kenya exported more than 102.92 million kilogrammes of tea to 58 international markets through the Mombasa Tea Auction between January and March 2025, according to the latest Tea Board of Kenya (TBK) report.  

Despite this achievement, the country faced a notable decline in production, with KTDA factories, independent producers, and estates producing 37.9 million kgs, down from 54.3 million kgs in the same period last year2.  

KTDA smallholder factories contributed 20.4 million kgs, while Nyayo Tea Zones produced 321,754 kgs. 

TBK Chief Executive Willy Mutai highlighted that the top ten export markets accounted for 78.9 percent of total export volume, including key destinations such as Jordan, Oman, Kazakhstan, and China.  

Pakistan remained the leading buyer, purchasing 17.4 million kgs and controlling 36.9 percent of Kenya’s tea exports. Other significant importers included Egypt (5.85 million kgs), the UK (3.01 million kgs), and the UAE (6.4 million kgs).  

Exports to Djibouti rose sharply to 152,200 kgs, while shipments to Ukraine dropped to 289,472 kgs from 440,560 kgs a year earlier. 

The report noted that demand for Kenyan tea was adversely affected by the Ukraine-Russia conflict, attacks on vessels along the Red Sea route, and market access issues in Sudan23. Russia, through dealers, purchased 2.03 million kgs, slightly down from 2.17 million kgs the previous year.  

During the quarter, 75 dealers participated in the auction, with tea from six countries—Kenya, Uganda, Tanzania, Rwanda, Burundi, and Mozambique—totaling 126.73 million kgs traded. 

The tea sector is currently undergoing significant reforms aimed at increasing value addition, enhancing farmer incomes, and ensuring long-term sustainability45. 

Agriculture Cabinet Secretary Mutahi Kagwe announced that the 2025/2026 Finance Bill includes key tax incentives, such as the removal of excise duty on tea packaging materials and the elimination of VAT on value-added tea exports.  

These measures are expected to improve the affordability of packaging and boost the competitiveness of Kenyan tea in global markets. 

The government is also supporting direct sales to allow producers to negotiate directly with international buyers, increasing price transparency and ensuring farmers receive better returns.  

Plans are underway to establish common-user packaging and processing facilities accessible to all producers. Smallholder tea factories are being encouraged to invest in value addition, diversify into specialty teas, and build strong Kenyan brands that command premium prices worldwide45. 

These reforms are designed to make the tea industry more competitive, fair, and profitable for Kenya’s over 650,000 smallholder farmers, who contribute nearly a quarter of the country’s foreign exchange earnings. 

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