Dry conditions and trade barriers weigh on Kenya’s tea industry as the government pushes for broader market access.

KENYA – Kenya’s tea production dropped by 13.55 percent in the first two months of 2025, according to the Tea Board of Kenya (TBK), citing unusually dry weather conditions as the primary cause.
Production declined to 98.9 million kilograms during the period, down from 114.4 million kilograms in the same timeframe in 2024.
The most significant decline occurred in February, when output fell to 44 million kilograms, a drop of 10.8 million kilograms compared to the same month last year.
TBK Chief Executive Officer Willy Mutai stated that the eastern region of the Rift Valley recorded a 21 percent drop in production, while the western region saw an 18.6 percent decline.
The Climate Prediction and Applications Center of the Intergovernmental Authority on Development (IGAD) has forecasted below-average rainfall for Kenya during the March to May rainy season, indicating that production could continue to be affected in the months ahead.
Tea remains one of Kenya’s top foreign exchange earners, alongside tourism and horticulture. In response to the export challenges and reduced output, the government is pursuing efforts to diversify export markets and revive previously restricted destinations.
One such effort is aimed at lifting the ban on Kenyan tea exports to Iran. The ban stemmed from United States sanctions on Iran, which have complicated financial transactions for local exporters.
Banks have been hesitant to facilitate payments over fears of U.S. penalties, deterring many traders from engaging with Iranian buyers.
Despite these challenges, TBK reported a 20.8 percent surge in tea export volumes in the first ten months of 2024, driven by growing demand in key destination markets.
Export volumes rose to 500.8 million kilograms from 414.5 million kilograms during the same period in 2023, earning the country Kes 155 billion (US$1.2B).
Kenya is also lobbying for duty-free access to the Chinese market for tea, coffee, and macadamia nuts.
President William Ruto emphasized during a state visit to China that current tariffs limit Kenya’s export capacity.
He proposed a trade arrangement similar to the African Growth and Opportunity Act (AGOA) to enhance export potential.
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