A dramatic increase in Kenyan tea exports to Kazakhstan and Oman in 2025 drove total earnings from the beverage up 2%, despite the country producing less tea and fetching lower prices compared to previous years.
- •Kazakhstan tea imports recorded an increase of 15.92 Million Kgs (186.92%) while Oman recorded an increase of 13.53 Million Kgs (320.14%).
- •Tea exports dominate over sales to the local market, tapping KSh 186.91 billion (over 85% of the total value) and 653 million Kgs of volumes.
- •However, the average price of tea sold abroad fell to US$2.21 per Kg last year compared to US$2.27 in 2024 due to unfavourable exchange rates.
“Despite the challenges of the global economic shocks, slow expansion of the global economy, internal conflicts in some of the key markets and a stronger exchange rate, the tea industry remained resilient in 2025 and recorded higher earnings compared to 2024,” a report from the Tea Board of Kenya (TBK) said.
Pakistan is the largest importer of Kenyan tea, accounting for 36% of total exports and a value haul of KSh 73.4 billion. Other key markets in 2025 were Egypt (13.9%), UK (8.6%), UAE (5%), and Russia (4.2%).
Kenya’s loss of valuable export markets like Sudan and Iran spooked farmers who were afraid that alternative markets would not be found in time. However, the report noted that significant growth in exports was recorded in targeted alternative markets like Ireland (454.39%), Japan (287.03%), Jordan (80.74%), Switzerland (62.45%), Malaysia (54.67%), and Chad-which used to get their tea from Sudan before the war.
At the Mombasa tea auction, demand for Kenyan tea last year improved with an absorption rate of 73% compared to 55% in 2024. Over 380 million Kgs of tea was sold due to the government’s decision to scrap off the price floor it had mandated in 2021. The policy was meant to protect farmers from declining global prices but in effect, led to the accumulation of unsold tea and poor demand at the auction.
Despite these fortunes, risks for the beverage abound due to shipping disruptions in the red sea and the gulf region, forcing most cargo to be rerouted via Southern Africa. This could cause higher costs for importers and longer delivery times.
Meanwhile, value added tea exports represented only 4% of total exports (25.36 million kgs). Although this amount is smaller compared to the total tea exports, the government’s removal of VAT on value addition inputs is foreseen as an incentive for further growth. Other plans on the pipeline include the improvement of Common User Facilities (SEZs), Warehousing in export markets, and a China distribution hub.
