Policy reforms come amid export risks tied to escalating Middle East tensions.

KENYA – Kenya Tea Development Agency (KTDA) has entered into a strategic partnership with the Kenya Institute for Public Policy Research and Analysis (KIPPRA) to review and update its institutional policy framework amid growing regulatory and market pressures in the tea sector.
KTDA said the review comes at a time when the industry is grappling with regulatory changes, market volatility and heightened stakeholder scrutiny.
The agency noted that the exercise aims to ensure compliance with existing laws, address governance gaps and align its operations with current regulatory requirements.
“Under the partnership, KIPPRA will conduct an in-depth, evidence-based assessment of KTDA’s governance instruments, marketing frameworks, and operational guidelines,” KTDA said in a statement.
The review will also examine whether current policies are aligned with the agency’s strategic objectives.
KTDA Chairman Chege Kirundi said clear governance structures and defined marketing and trade policies are essential to reducing institutional risk and enhancing accountability across KTDA-managed factories.
The reform initiative is part of KTDA’s transition toward a more market-responsive institution capable of navigating global trade dynamics while safeguarding Kenya’s reputation for quality tea.
The agency indicated it is seeking to strengthen its marketing systems and international trade strategies as part of broader reforms aimed at improving competitiveness in global tea markets.
KTDA manages tea factories on behalf of smallholder farmers and has faced ongoing debate within the sector over governance, farmer returns and market access. The policy review is expected to inform future operational and structural adjustments within the organisation.
Kenya’s Tea Exports Face Middle East Uncertainty
The partnership comes as Kenya’s tea sector faces potential headwinds linked to escalating tensions in the Middle East, a key export destination.
Speaking in Nairobi on Monday, Ali Gholampour, Iran’s Ambassador to Kenya, acknowledged the broader economic risks associated with the conflict.
“The only way to stop this disruption is for other countries around the world to join hands in calling for de-escalation,” he said, noting Iran’s role as a major oil producer and the potential global economic consequences.
Tea remains Kenya’s leading agricultural export and is particularly exposed to regional instability. According to the Tea Board of Kenya, Kenya exported about 13 million kilograms of tea to Iran in 2024, valued at Kes 4.26 billion.
“Iran ranks among the top ten importers of Kenyan tea. In 2024, it imported approximately 13 million kilograms valued at Kes 4.26 billion,” the board said earlier.
Data from the United Nations COMTRADE database, as reported by Trading Economics, shows Kenya’s total exports to Iran in 2024 reached approximately $50.8 million, with coffee, tea and spices contributing about $45.23 million.
A 2024 report by the Kenya National Bureau of Statistics stated that Pakistan accounted for 34.7% of Kenya’s tea export volume, with Egypt, the United Kingdom, the United Arab Emirates and Iran among other key markets.
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