Kenya and Iran have set a 60-day deadline to settle a tea export row, aiming to reopen one of Kenya’s key markets and revive earnings for farmers and exporters hit by the suspension.
- •The decision was reached during the 7th Session of the Kenya–Iran Joint Commission for Cooperation (JCC) in Nairobi, led by Kenya’s Prime Cabinet Secretary Musalia Mudavadi and Iran’s Minister of Agricultural Jihad Dr. Gholamreza Nouri Ghezelcheh.
- •The dispute arose from a scandal involving Cup of Joe Limited, a Kenyan firm accused of importing low-grade tea, blending it, and re-exporting it to Iran as premium Kenyan tea.
- •The Tea Board of Kenya deregistered the company and initiated prosecution, after the incident damaged Kenya’s trading reputation and prompted Iran to suspend imports.
Economic Importance of the Iranian Market
Agriculture Cabinet Secretary Mutahi Kagwe said the two countries will draft strict regulations to safeguard the quality of Kenyan tea. He stressed that tea remains one of Kenya’s largest foreign exchange earners, supporting millions of livelihoods, and must be protected from unscrupulous practices.
Iran is among Kenya’s top ten tea markets. In 2024, it imported 13 million kilograms worth KSh 4.26 billion, behind Pakistan, which accounted for 34.7% of total tea export volumes valued at KSh 70 billion. The loss of the Iranian market has strained earnings for farmers, especially in tea-growing counties where exports are a primary source of income.
Kenya’s tea exports reached 96 destinations in 2024, up from 92 in 2023. Major buyers included Egypt (86.90 million kg, KSh 23.96 billion), the UK (57.44 million kg, KSh 16.99 billion), the UAE (30.50 million kg, KSh 10.27 billion), Russia (28.46 million kg, KSh 7.43 billion), India (17.13 million kg, KSh 3.94 billion), Saudi Arabia (15.92 million kg, KSh 6.02 billion), and Yemen (14.13 million kg, KSh 5.52 billion).
The joint committee will develop a framework to restore trust, enforce compliance with quality standards, and ensure fair trade practices. For everyday Kenyans, resolving the dispute could mean more stable tea prices, improved earnings for smallholder farmers, and renewed investor confidence in the sector. If the plan succeeds, exports to Iran could resume before the 60-day deadline, providing a timely boost to the economy.
