Kenya’s Williamson, Kapchorua tea firms issue profit warnings amid global tea market challenges 

KENYA – Two of Kenya’s oldest listed agricultural companies, Williamson Tea Kenya Plc and Kapchorua Tea Kenya Plc, have issued profit warnings for the financial year ending 31st March 2025.  

Both firms now anticipate their full-year earnings will decline by more than 25% compared to the previous year, citing difficult conditions in the global tea market. 

According to regulatory disclosures, the expected earnings shortfall means profits will not exceed Kes 299.5 million for Kapchorua and Kes 395.2 million (US$3.06M) for Williamson, based on their FY2024 performance.  

The profit warnings are attributed to a combination of global oversupply, weak demand, and an appreciating Kenya shilling, which has adversely affected export revenues. 

“The drop in profits is largely attributed to depressed market prices following an oversupply of tea against demand as well as a strong Kenya shilling against the US Dollar,” the firms noted in their official statements. 

Over the past five years, both Williamson and Kapchorua have ramped up production in anticipation of stronger demand. However, a persistent glut in global supply has kept prices under pressure, limiting profitability.  

While Kapchorua has consistently fetched better prices per kilogram than its larger counterpart, Williamson’s extensive production scale has left it more exposed to international market fluctuations and currency headwinds. 

Kapchorua has fared better in recent performance metrics. In the half-year ended March 2024, the company reported a 27% increase in profit to Kes 399.3 million (US$3.09M) , up from Kes 314 million (US$2.4M), and paid a dividend of Kes 25 per share.  

Williamson, meanwhile, reported a modest 6% profit increase to Kes 526.9 million (US$4.08M) but reduced its dividend from Kes 30 to Kes 25 per share. 

Earlier in the year, Limuru Tea Plc, another industry player, reported a downturn in its financial results, citing higher operational costs and market pressures.  

The firm posted a net loss of Kes 15.2 million (US$117K), compared to a profit of Kes 8 million (US$61.9K) in the previous year. 

Despite these individual setbacks, the Kenya Tea Industry Performance Report – 2024, published by the Tea Board of Kenya, painted a broader picture of growth.  

Total earnings from tea increased by 9% to Kes 215.21 billion (US$1.67M), up from Kes 196.97 billion (US$1.53M) in 2023. Export revenues contributed Kes 181.69 billion (US$1.4B), local sales brought in Kes 18 billion (139.36M), and Kes 15.52 billion (US$117.68M) came from committed stocks. 

Kenya exported 594.50 million kilograms of tea in 2024—a 14% increase from 522.92 million kilograms in 2023.  

However, average export prices fell to US$2.27 per kilogram from US$2.47, while the Kenya shilling appreciated to Sh130 against the US dollar from 139.85, curbing potential gains. 

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