Kenya’s tea production dropped 11.5% in the first seven months of 2025 to 322.29 million kilograms, down from 364.13 million kilograms a year earlier, according to the Tea Board of Kenya (TBK).
- •July output alone fell 4.37% year-on-year to 39.04 million kilograms, reflecting prolonged dry and cold weather that reduced yields across major growing regions.
- •Production in the East of Rift region fell 9.8%, while the West of Rift declined 2.8%. Factories under the Kenya Tea Development Agency (KTDA) reported a sharper 13.7% drop, the steepest among all producers.
- •The Board attributed the decline to reduced rainfall averaging below 12 millimeters daily in some zones and lower temperatures between 8°C and 21°C.
Auction activity mirrored the weak production trend. Tea sold at the Mombasa auction dropped 25.6% year-on-year to 25.41 million kilograms in July.
The average auction price eased to USD 2.05 per kilogram from USD 2.21 a year earlier. In shilling terms, prices averaged KSh 264.89 per kilogram, down 7.7% year-on-year.
While overall demand remained muted, absorption improved to 55% from 40% a year earlier as quality differentials widened.
Table 1: Production and Auction Summary (2024 vs 2025)
| Metric | July 2024 | July 2025 | YoY % Change |
|---|---|---|---|
| Production (Million Kgs) | 40.82 | 39.04 | -4.37% |
| Auction Volume (Million Kgs) | 34.14 | 25.41 | -25.6% |
| Avg. Auction Price (USD/Kg) | 2.21 | 2.05 | -7.2% |
| Avg. Auction Price (KSh/Kg) | 287.01 | 264.89 | -7.7% |
Prices and Local Sales
- •Smallholder teas fetched a higher average of USD 2.32 per kilogram, but this was below the USD 2.77 recorded in July 2024.
- •TBK noted subdued demand from the UK, Russia, and Sudan, while key buyers such as Pakistan maintained consistent purchases.
- •Local tea sales rose 5% year-on-year to 2.88 million kilograms, supported by VAT removal on Kenya-grown tea and zero-rated packaging materials under the Finance Act 2025.
Table 2: Average Auction Prices and Local Sales (July 2025)
| Category | 2024 | 2025 | YoY Change |
| Smallholder Avg. Price (USD/Kg) | 2.77 | 2.32 | -16.3% |
| Overall Avg. Auction Price (USD/Kg) | 2.21 | 2.05 | -7.2% |
| Local Sales (Million Kgs) | 2.74 | 2.88 | +5.1% |
Exports Shift to New Markets as Pakistan Leads
Kenya exported 55.57 million kilograms of tea in July 2025, a 5% increase from 52.74 million kilograms a year earlier.
- •Pakistan remained the largest destination, taking 36% of total exports at 20.06 million kilograms.
- •Egypt, the UK, and the UAE followed, though shipments to the UK fell 2% year-on-year.
- •Emerging markets including Oman, Kazakhstan, and Jordan recorded strong growth, offsetting declines in Sudan and Yemen.
For the seven months to July, total tea exports dropped 7% year-on-year to 330.19 million kilograms.
- •TBK cited weak global demand, shipment delays along the Red Sea route, and reduced buying by some European importers.
- •The Board expects prices to recover gradually toward December as inventories decline and winter demand rises.
Table 3: Top 10 Tea Export Destinations (Jan–Jul 2025 vs 2024)
| Rank | Destination | 2024 (Kgs) | 2025 (Kgs) | YoY Change |
| 1 | Pakistan | 122,026,251 | 117,462,222 | -4% |
| 2 | Egypt | 50,566,197 | 46,863,898 | -7% |
| 3 | UK | 35,617,307 | 25,639,013 | -28% |
| 4 | UAE | 18,772,633 | 15,552,216 | -17% |
| 5 | Russia | 18,244,186 | 15,427,510 | -15% |
| 6 | Oman | 1,702,829 | 11,398,916 | +569% |
| 7 | Kazakhstan | 4,805,615 | 8,543,196 | +78% |
| 8 | India | 6,558,541 | 8,177,621 | +25% |
| 9 | Sudan | 5,598,898 | 7,166,645 | +26% |
| 10 | Iran | 8,583,355 | 6,917,451 | -19% |
TBK projects total production for 2025 at about 553 million kilograms, down from 594 million kilograms in 2024, as dry weather and weaker rainfall persist.
While local consumption is set to benefit from fiscal incentives, global market volatility and geopolitical disruptions remain key headwinds for Kenya’s tea industry in the second half of the year.
