Tea sector reforms and a spirited push to access new markets have paid dividend with statistics showing that Kenya's earnings went up by 2 percent to KSh218.8 billion last year.

Speaking at Rukuriri Tea Factory in Embu County during the release of the 2025 tea industry performance report, Cabinet Secretary Mutahi Kagwe said the sector on a growth trajectory leveraging on a global shift towards quality and value addition.

During the period under focus, Kenya's earnings from tea exports increased to KSh186.91 Billion even as the total volume of green leaf edged up to 652.8 million kilos.

Additionally, the update of tea in the local market increased, earning the industry KSh 19.13 billion, contributing to an overall rise in total value compared to both 2024 and 2023.

The report shows that Kenya further expanded its global footprint in tea market, accessing  100 international markets, up from 96 reported in 2024.

Significant increase in market growth was recorded in traditional markets such as Pakistan and Egypt, while newer destinations including Oman, Ireland, Japan, and Kazakhstan showed potential, attributable to the industry's diversification strategy.

Value addition

Following a difficult 2024 marked by oversupply and depressed prices, the government has shifted focus from volume-driven exports to quality, value addition, and market segmentation, the CS explained.

As part of this strategy, CS Kagwe announced new regulations aimed at strengthening the sector through enhanced traceability, accountability, and compliance. 

He noted that these measures will be rolled out while addressing long-standing challenges faced by players in the industry such as exploitation by middlemen and low-quality imports.

A 0.8 percent export levy has been implemented to support marketing, research, infrastructure, and regulation, alongside a 100 percent levy on imported tea to protect local producers. 

At the same time, the Tea Board of Kenya is set to launch a B2B e-commerce platform to directly connect producers with global buyers, as the country deepens trade ties under frameworks such as AfCFTA and new bilateral partnerships.

The reforms are geared toward increasing smallholder earnings from KSh 59 per kilogram in 2022 to KSh 100 per kilogram by 2027, benefiting over 834,000 farmers and millions of Kenyans who depend on the tea value chain.

Overall, the 2025 report signals not just a recovery, but a structural shift toward a more competitive, value-driven, and globally recognized tea industry.

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