Kenya earns US$1.2B from tea exports in 2023

KENYA – Kenya’s tea industry has reached new heights, reporting a remarkable 31 percent increase in the value of tea exports in 2023, setting a record high.  

The surge is attributed to both a rise in export volumes and a depreciation of the local currency, according to officials. 

Willy Mutai, CEO of the Tea Board of Kenya, unveiled the impressive statistics during the launch of the tea industry performance results for 2023 in Nairobi.  

Mutai stated, “Tea export earnings stood at a record Kes180.57 billion (about US$1.22 billion) in 2023, compared to US$940 million the previous year. This represented a 31 percent increase in the value of exports and is the best earnings ever recorded by the tea industry over the years.” 

The total export volume also witnessed a substantial increase, rising from 450.33 million kg in 2022 to 522.92 million kg in 2023, marking a 16 percent increase.  

Notably, Pakistan maintained its status as the leading destination for Kenyan tea, importing 209.59 million kg, a 15 percent increase from the previous year. 

Kenya’s Deputy President, Rigathi Gachagua, emphasized the government’s commitment to tea growers, stating, “The government will continue to implement the necessary reforms to increase returns for tea growers.”  

Gachagua highlighted ongoing efforts to address challenges in the industry, such as the increasing cost of production, declining tea quality, low-value addition, and depressed prices. 

Gachagua outlined goals for the tea industry, stating, “Kenya has prioritized increasing the level of value-added tea exports from 5 percent in 2023 to 50 percent by 2027.”  

This move aims to elevate the value of tea exports from US$1.22 billion in 2023 to over US$1.85 billion by 2027, benefiting smallholder tea farmers. 

In addition to reforms, the government plans to lead bilateral engagements to restore key markets such as Russia and expand markets with China, Iran, Saudi Arabia, and Turkey.  

Mithika Linturi, Cabinet Secretary of the Ministry of Agriculture and Livestock Development, highlighted plans to establish an incubation center for product diversification into high-value specialty teas and value addition, with a focus on youth involvement. 

Linturi encouraged tea traders to leverage opportunities presented by the African Continental Free Trade Area (AfCFTA) framework and the Economic Commission for West African States (ECOWAS), where preferential negotiated tariffs are available. 

While traditional markets saw increased exports, the United Arab Emirates, Russia, and Sudan experienced a decline in tea exports compared to 2022, according to the Tea Board of Kenya. 

 

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