Kenya’s tea industry recorded Sh218.79 billion in total marketed value in 2025, marking a strong recovery driven by sweeping reforms, expanded export markets and a renewed focus on quality and value addition.
Speaking during the official release of the 2025 Kenya Tea Industry Performance Report at Rukuriri Tea Factory in Embu County, Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe said the sector had firmly returned to a growth path despite global economic pressures.
“This performance is not accidental. It is the result of deliberate reforms, market expansion, and a renewed focus on quality and value addition under the Bottom-Up Economic Transformation Agenda,” Kagwe said.
According to the report, export earnings rose to Sh186.91 billion, reflecting a 2.87 per cent increase, while export volumes surged to 652.8 million kilograms, up 9.81 per cent.
Domestic sales also grew by six per cent to Sh19.13 billion, contributing to an overall two per cent increase in total marketed value compared to 2024, and an 11 per cent rise from 2023.
Kenya’s global tea footprint expanded further, with exports reaching 100 international markets in 2025, up from 96 the previous year.
Traditional buyers such as Pakistan and Egypt maintained steady demand, while re-export hubs including the United Arab Emirates and Oman recorded significant growth. Oman, in particular, posted a sharp 320 per cent increase in volumes.
Emerging markets delivered notable gains, with exports to Ireland rising by 454 per cent, Japan by 287 per cent and Kazakhstan by 186 per cent, underscoring Kenya’s aggressive diversification strategy.
The improved performance follows a challenging 2024 season, when a bumper harvest and excess stocks from 2023 triggered a global oversupply of CTC tea, leading to depressed prices.
“At the height of the glut, we made a choice — not to retreat, but to reform. What you are seeing now is the beginning of a smarter, more competitive tea economy,” Kagwe said.
As part of the reforms, the government has introduced new regulatory frameworks, including the Tea (Registration and Licensing) Regulations, 2026, and the Tea (Levy) Regulations, 2026.
The measures aim to enhance traceability and accountability across the value chain while addressing challenges such as exploitation by middlemen, delays in leaf collection and falsification of weighment.
“For too long, Kenya has produced some of the best tea in the world but invested too little in marketing it. That changes now,” Kagwe said.
The reforms introduce a 0.8 per cent export levy to fund global marketing, research, infrastructure and industry oversight, alongside a 100 per cent levy on imported tea to curb dumping of low-quality products.
Kagwe emphasised that the export levy will be borne by exporters and importers, not farmers.
In addition, the Tea Board of Kenya is set to launch a business-to-business e-commerce marketplace to connect producers directly with international buyers, reducing reliance on traditional trading channels.
The government is also leveraging trade agreements such as the African Continental Free Trade Area to expand value addition opportunities and deepen access to new markets across Africa and beyond.
With more than 834,000 smallholder farmers and about 6.5 million Kenyans dependent on the tea sector, the reforms are expected to boost farmer incomes, with a target of increasing earnings from Sh59 per kilogram in 2022 to Sh100 by 2027.
The 2025 performance signals a broader structural shift in the industry, positioning Kenya not only as the world’s leading exporter of black tea but also as a premium global brand focused on higher returns and sustainable growth.