Kenya’s efforts to strengthen its tea sector and improve farmer livelihoods show promising results as export values increase and new laws are proposed. Photo credit: Kenya Tea Development Agency
In an effort to increase tea farming revenues, the Kenyan government proposes a new law that would allow producers to bypass the Mombasa tea auction and sell directly to the market. President Ruto’s administration continues to work closely with the Tea Board of Kenya (TBK) on a series of reforms aimed at strengthening the tea sector and raising export values.
Initiating Change
The proposed Tea (Amendment) Bill aims to facilitate direct-to-market tea sales, enabling farmers and factories to negotiate with buyers to increase competition, secure higher prices, and increase farmers’ earnings.
While visiting factories operated by the Kenya Tea Development Agency, agricultural principal secretary Paul Ronoh explained that the amendment addresses longstanding challenges that farmers face under the current auction system.
“For a long time, Kenyan tea has been sold through the Mombasa Tea Auction,” said Runoh. “While the auction has provided a market platform, it has also limited farmers, especially when direct buyers are willing to pay better prices.” Runoh also emphasized the Kenya Kwanza administration's dedication to improving farmers’ livelihoods.
Last May, Kenya’s Ministry of Agriculture announced a proposal to allow 142 tea factories direct access to the international market. Once passed, factories will be able to package, brand, and sell tea directly to domestic and international clients, earning farmers higher returns.
Focusing on Market Development and Value Addition
In the 2025 Industry Performance Report, TBK chairman Ndungu Gathinji states, “During 2025, the board focused on market development, value addition, quality improvement, orthodox and specialty tea promotion, and strengthening regulatory and industry support frameworks.”
Those efforts paid off with an increase in export destinations. In 2025, Kenyan tea was shipped to 100 countries, up from 96 in 2024. Pakistan continues to be the main market for Kenyan tea, having received 235.13 million kg last year, worth KShs 73.41 billion ($568.6 million), accounting for 36% of Kenya’s total export volume.
Egypt (90.70 million kg), the UK (56.39 million kg), the UAE (32.54 million kg), and Russia (27.44 million kg) were also key export destinations. Iran received 20.04 million kg in 2025, while Oman, in its efforts to establish itself as a new distribution hub in the region, imported 17.76 million kg.
The fact that Pakistan is Kenya’s main market, along with several other countries in the region, means Kenya currently faces severe shipping delays and other disruptions as a result of the US-Israeli war with Iran.
The export of value-added teas in the form of tea bags, loose leaf tea in retail packages, and instant teas produced locally increased in 2025, totaling 25.36 million kg. The administration also supports establishing common user facilities to add value by providing financial incentives to promote local tea packaging at competitive rates.
Value Increases Despite Production Decline
Kenya's tea production declined by 8% (48.10 million kg) in 2025 to 550.37 million kg due to erratic rainfall and unfavorable weather conditions. However, export volumes increased by 9.81% (58.30 million kg) in 2025, from 594.50 million kg in 2024 to 652.80 million kg.
As Kenyan tea export volumes increase, the country simultaneously endeavors to increase export values. Graph credit: Tea Board of Kenya
The increase in exports is attributed to high volumes of unsold stocks from 2023 to 2024 being carried over to the next year. The elimination of its tea surplus improved Kenya’s export earnings by 2.8% in 2025 to KShs 186.91 billion. The total marketed value for tea in 2025 increased by 2% to KShs 218.79 billion, up 11% from 2023.
In an effort to increase value, quality, and specialty tea production, TBK continued to enforce green leaf standards across all factories and launched the first orthodox tea auction in Mombasa in the fall of 2025. According to the tea performance report, specialty tea accounted for around 2.82% (15.49 million kg) of the 550.37 million kg of tea produced in 2025. The majority (99%) of specialty production was black orthodox tea, totaling about 15.34 million kg, with a small amount of green and purple tea (0.7%) making up the rest.
“Despite global economic challenges, market disruptions, and weather-related production declines, the tea industry remained resilient in 2025, recording growth in export volumes, export earnings, total marketed value, and market expansion,” stated Muthahi Kagwe, cabinet secretary for Agricultural and Livestock Development.
“The Government will continue implementing reforms aimed at improving farmer earnings, promoting value addition, enhancing quality, expanding markets, and strengthening the global competitiveness of Kenya tea,” Kagwe continued. “Our focus remains on building a sustainable, competitive, and farmer-centered tea industry.”