Kenya Tea industry hits KSh218.79 billion in 2025 as exports and markets reach record highs
KTDA Holdings chairman Enos Njeru (left) explaning tea processing procedures to stakeholders led by CS Mutahi Kagwe yesterday. Photos/Courtesy.
By WMW
Kenya’s tea industry has recorded a historic recovery, posting a total marketed value of KSh218.79 billion in 2025, signaling not just a rebound from global economic shocks but a structural transformation toward quality-driven, globally competitive exports.
The announcement came during the release of the 2025 Kenya Tea Industry Performance Report at Rukuriri Tea Factory in Embu County, led by Cabinet Secretary for Agriculture, Mutahi Kagwe, who hailed the performance as a milestone for the sector and a major boost for smallholder farmers.
“Despite global economic pressures, the tea sector is firmly back on a growth path,” CS Kagwe said.
“The record value reflects deliberate reforms, market expansion, and a shift toward quality and value addition. We are now exporting to 100 international markets, up from 96 last year, including emerging hubs like Oman, Japan, Ireland, and Kazakhstan.”
The report shows that export earnings reached KSh186.91 billion, with a total volume of 652.8 million kilograms, while domestic sales rose to KSh19.13 billion, contributing to an overall increase in total market value compared to 2024.
Traditional markets such as Pakistan and Egypt recorded steady growth, while newer destinations demonstrated significant potential, reflecting Kenya’s aggressive diversification strategy.
Industry players, including KTDA Holdings Limited, credited reforms under the government’s Bottom-Up Economic Transformation Agenda (BETA) for strengthening the sector, improving farmer earnings, and enhancing traceability and quality.
Kagwe announced the implementation of two transformative frameworks, the Tea (Registration and Licensing) Regulations, 2026, and the Tea (Levy) Regulations, 2026, which aim to enhance traceability across the value chain, curb leaf hawking, middleman exploitation, and weighment falsification, and protect smallholder interests.
A 0.8% export levy will fund marketing, research, and infrastructure, while a 100% levy on imported tea is designed to protect local producers without burdening farmers.
In addition, the Tea Board of Kenya plans to launch a B2B e-commerce platform connecting farmers directly to international buyers, strengthening trade ties under the African Continental Free Trade Area (AfCFTA) and bilateral agreements. A key focus of the reforms is to increase smallholder earnings from KSh59 per kilogram in 2022 to KSh100 per kilogram by 2027, benefiting over 834,000 farmers and millions of Kenyans dependent on the tea value chain.
The CS emphasized that these measures will create a more sustainable and globally competitive tea industry.
KTDA Holdings Chairman Enos Njeru described the report as a “turning point for Kenyan tea, emphasizing value over volume and global competitiveness.” Embu Senator John Karanja commended the government for prioritizing farmer welfare and urged further investment in modern tea processing facilities to increase value addition. Meanwhile, industry analyst Ralph Matheka noted that Kenya’s diversification into emerging international markets could shield the sector from global price shocks and improve earnings stability for farmers.
The 2025 Tea Industry Report marks more than just recovery; it represents a structural reset for the sector.
With new laws, improved market access, and direct trade platforms, Kenya is positioning itself as a global tea powerhouse while ensuring that millions of households dependent on the crop enjoy higher returns and a sustainable future. “Today’s achievements reflect the synergy between government, industry stakeholders, and our farmers. Kenya’s tea is not only back, but it is poised to set new standards in quality, value, and global reach,” Kagwe concluded.
The event was attended by stakeholders across the tea value chain, including KTDA officials, smallholder representatives, county leaders, and members of the Ministry of Agriculture.
Also present were area political leaders led by governor Cecily Mbarire.
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