Kenya tea earns Ksh218.79 billion in 2025 as exports, volumes and markets grow

Kenya’s tea industry staged a strong recovery in 2025, recording a total marketed value of Ksh218.79 billion, driven by improved export performance, increased production volumes, and expanded market access, according to the latest industry report.

The findings, contained in the Tea Industry Performance Report 2025 released by the Tea Board of Kenya, point to a sector rebounding from recent global and domestic challenges while undergoing significant structural reforms aimed at boosting farmer earnings and long-term sustainability.

The report was officially launched at Rukuriri Tea Factory in Embu County during an event presided over by Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe. The launch brought together key stakeholders across the tea value chain, including policymakers, industry leaders, and farmers.

In remarks shared following the release, Kagwe said the sector’s performance reflects the impact of ongoing reforms and renewed focus on market expansion.

“Kenya’s tea industry has recorded a strong recovery, posting Ksh218.79 billion in total marketed value in 2025, driven by reforms and market growth,” he noted.

Reforms Target Higher Farmer Earnings

Central to the reforms is a government-backed strategy to increase smallholder farmer earnings significantly over the next three years. According to Kagwe, the measures aim to raise farm-gate prices from KSh59 per kilogram in 2022 to KSh100 per kilogram by 2027.

The reforms are expected to benefit more than 834,000 smallholder farmers and millions of Kenyans whose livelihoods depend on the tea value chain, either directly or indirectly.

Industry regulators say the shift signals a move toward a more competitive and value-driven sector, with greater emphasis on quality, efficiency, and global positioning.

“The 2025 report signals not just a recovery, but a structural shift toward a more competitive, value-driven, and globally recognized tea industry,” Kagwe added.

Exports and Market Expansion Drive Growth

The report highlights growth in export volumes and diversification into new markets as key drivers behind the improved performance.

Kenya remains one of the world’s leading tea exporters, with black CTC tea continuing to dominate shipments.

Efforts to expand market access beyond traditional destinations have begun to bear fruit, helping cushion the sector from price volatility in established markets.

Stakeholders have also intensified marketing campaigns and trade engagements to position Kenyan tea more competitively on the global stage.

The Agriculture and Food Authority (AFA), which co-hosted the launch, emphasized the importance of sustained collaboration across the sector.

In a statement, the authority noted that the annual performance report provides a comprehensive overview of the sub-sector’s achievements and challenges, while outlining strategies to enhance productivity, promote value addition, and improve earnings.

Stakeholders Rally Behind Industry Transformation

The launch event drew participation from senior government officials and industry leaders, including Cecily Mbarire, Eric Muchangi, and Kagombe Gathuka, alongside representatives from the Kenya Tea Development Agency and farmers from key tea-growing regions.

Stakeholders used the platform to review the sector’s performance and discuss strategic interventions to sustain growth. Among the priorities highlighted were improving processing efficiency, strengthening governance within tea factories, and enhancing value addition to increase export earnings.

Challenges Persist Despite Gains

Despite the strong performance, the report acknowledges ongoing challenges, including fluctuating global prices, climate variability, and rising production costs. These factors continue to pose risks to profitability, particularly for smallholder farmers.

However, industry players remain optimistic that continued reforms, coupled with innovation and market diversification, will help the sector maintain its upward trajectory.

As Kenya’s tea industry navigates a rapidly evolving global landscape, the 2025 performance underscores both its resilience and its potential to drive economic growth. With reforms firmly in place and stakeholder alignment strengthening, the sector appears poised for sustained expansion in the years ahead.