Kenya’s Tea Sector Rebounds with KSh 218.79 Billion in 2025 Earnings

Kenya’s tea industry has staged a strong recovery, recording a total marketed value of KSh 218.79 billion in 2025, driven by reforms, market expansion, and a renewed focus on farmer earnings and global competitiveness.

Agriculture Cabinet Secretary Mutahi Kagwe announced the results at Rukuriri Tea Factory in Embu County during the release of the 2025 Tea Industry Performance Report. He said the sector is firmly back on a growth trajectory despite recent global economic shocks.

According to the report, export earnings rose significantly to KSh 186.91 billion, with export volumes reaching 652.8 million kilograms. Domestic sales also recorded growth, increasing to KSh 19.13 billion. The improved performance marks a notable rise compared to both 2024 and 2023, signaling renewed momentum in one of Kenya’s leading export sectors.

Kenya also expanded its global reach, increasing its market footprint to 100 countries, up from 96 the previous year. Traditional markets such as Pakistan and Egypt continued to perform strongly, while emerging destinations including Oman, Ireland, Japan, and Kazakhstan posted notable growth. The expansion reflects a deliberate strategy to diversify export destinations and reduce reliance on a few key markets.

Following a challenging 2024 characterized by oversupply and depressed prices, the government has shifted its approach from volume-driven exports to a model centered on quality, value addition, and market segmentation. Kagwe said this transition is critical to ensuring sustainability and higher returns for farmers.

In line with the reforms, the Tea Board of Kenya is set to roll out a business-to-business e-commerce platform aimed at directly linking producers with international buyers. The move is expected to improve market access and transparency while reducing reliance on intermediaries.

The government has also introduced new regulatory measures to strengthen traceability, accountability, and compliance across the sector. These include a 0.8 percent export levy to fund marketing, research, infrastructure, and regulation, as well as a 100 percent levy on imported tea to protect local producers. Kagwe emphasized that the measures are designed to support, not burden, farmers.

Additionally, Kenya is leveraging regional and international trade frameworks such as the African Continental Free Trade Area (AfCFTA), alongside new bilateral partnerships, to deepen its presence in global markets.

The reforms aim to significantly boost smallholder earnings, with projections indicating an increase from KSh 59 per kilogram in 2022 to KSh 100 per kilogram by 2027. This is expected to benefit more than 834,000 farmers and millions of Kenyans who rely on the tea value chain for their livelihoods.

Overall, the 2025 Tea Industry Performance Report points not only to a recovery, but to a broader structural shift toward a more competitive, value-driven, and globally recognized tea industry.