Iran has formally requested Kenya’s assistance in legal investigations tied to a US$3.5 billion corruption case involving Debsh Tea Company, the Iranian importer that handled the bulk of the country’s tea imports.
- •Tehran is seeking documentation and cooperation to trace irregularities including misappropriated government foreign currency and alleged mislabeling of imported tea.
- •According to the Iranian ambassador to Kenya, Dr. Ali Gholampour, the scandal has already led to convictions of key Iranian officials, including two former ministers and the dismissal of various state officials.
- •Kenya’s involvement centers on Cup of Joe Limited, a local tea exporter whose deregistration in 2024 disrupted the country’s supply chain to Iran.
According to Iranian media, Debsh Tea Company sold low-grade tea imported from the Kenyan company and falsely presented it as premium Indian tea to pocket the foreign currency difference.
“One Kenyan company was a partner of the Iranian company, and to resolve this issue, our judiciary needs information and cooperation to deal with this specific case. That is why we are expecting the Kenyan government to extend its good offices and cooperation to help our judiciary handle this particular matter,” Dr. Gholampour said in an interview on a local TV station.
Iranian authorities have indicated that Kenyan documentation and cooperation are essential to resolving the case, particularly given the historical scale of the misuse of funds. Cup of Joe is viewed as a critical node in tracing the movement of goods and funds linked to the scandal, though there is no public allegation of wrongdoing by the company itself.
The Directorate of Criminal Investigations (DCI) has reportedly been involved in gathering information relevant to the inquiry but no records have been released to the public so far.
Cup of Joe had applied to renew its tea trade licence and was rated fully compliant in inspections by the Tea Board of Kenya (TBK). Despite this, the licence was revoked following a process involving both the TBK and the State Department for Agriculture.
The company challenged the revocation in Nairobi’s High Court, arguing procedural unfairness and bias, but the case was dismissed on a technicality, leaving the underlying dispute unresolved.
The deregistration coincided with Iran suspending Kenyan tea imports, citing quality concerns linked to alleged irregularities. In 2024, Kenya exported approximately 13 million kilograms of tea to Iran, valued at KSh 4.26 billion, representing roughly 86% of the country’s total shipments to Tehran.
The suspension strained export earnings and disrupted contracts for hundreds of smallholder farmers, while prompting bilateral discussions under a Joint Commission for Cooperation. A 60-day framework was established to resolve the standoff, though details of compliance and market access remain unclear.
Despite the ongoing investigations, Dr. Gholampour emphasized that Kenyan tea was crucial for Iran due to its quality, suggesting the potential for market restoration if the current issues are resolved.
