Kenya’s tea sector recorded higher export earnings in 2025, with revenues rising to Ksh186.9 billion amid ongoing government reforms aimed at improving returns for farmers.
Data from the Tea Board of Kenya (TBK) shows that tea export earnings increased from Ksh136.5 billion in 2021 to Ksh181.6 billion in 2024 before reaching Ksh186.9 billion last year.
Tea production also remained substantial, rising from 537 million kilogrammes in 2021 to 598 million kilogrammes in 2024, before falling to 550 million kilogrammes in 2025.
TBK Chief Executive Officer Willy Mutai attributed the progress to interventions introduced over the past four years, which he said had contributed to improved payments for farmers.
The average payment for green leaf increased from Ksh35 per kilogramme in 2021 to Ksh64 in 2024, before settling at Ksh56 in 2025.
The government has set a target of raising payments to at least Ksh100 per kilogramme by 2027 through measures focused on improving tea quality, reducing production costs, expanding value addition, strengthening market competition and increasing farmer representation.
Agriculture Cabinet Secretary Mutahi Kagwe said the government was seeking to build a more sustainable tea industry that would deliver better returns to farmers while enhancing Kenya’s competitiveness in international markets.
Kagwe noted that tea remains an important source of income for hundreds of thousands of households, particularly in rural areas, supporting spending on education, healthcare and farm investments.
The government is also seeking to diversify Kenya’s tea export markets beyond traditional destinations such as Pakistan, Egypt, the UK, Sudan, Afghanistan and the UAE.
Kagwe said Kenya would continue strengthening its existing trade relationships while pursuing opportunities in emerging and high-growth markets.
As part of efforts to modernise the sector, the government has allocated Ksh850 million for machinery and equipment in 17 smallholder tea factories.
Kericho received the largest allocation at Ksh248.6 million, followed by Nyeri with Ksh131.6 million and Bomet with Ksh104.8 million. Other beneficiaries included Nandi, Murang’a, Nakuru, Trans Nzoia, Nyamira, Tharaka Nithi and Kirinyaga.
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More than 650,000 smallholder tea farmers have also benefited from fertiliser support, receiving approximately 290,000 tonnes of subsidised fertiliser since 2022.
The government has introduced tax measures intended to encourage tea value addition and improve the sector’s competitiveness.
Among the measures are the removal of VAT on tea purchased from factories for value addition under the Finance Act, 2023, and the zero-rating of packaging materials used for tea value addition under the Finance Act, 2025.
Ketepa has also received a Ksh100 million grant to establish a common-user facility for tea value addition.
Market expansion initiatives are targeting both established and emerging destinations, including Pakistan, Egypt, the UAE, the UK, Russia, Iran, North America, China, Hong Kong, Jordan, Saudi Arabia, Germany and Malaysia.
The government has further backed tea factories through the Strategic Tea Quality Improvement programme and continued farmer education on tea quality standards.
