Kenya targets Arab, Asian markets to boost tea exports and local industry

KENYA – Kenya is intensifying efforts to expand its tea export markets in Arab and Asian countries to increase foreign exchange earnings and support the domestic tea industry. 

Iran, Pakistan, and India have been identified as key targets, with marketing teams scheduled to visit these countries starting January 2025. 

Speaking at a consultative meeting with the Kenya Tea Development Agency (KTDA), Agriculture Principal Secretary Paul Ronoh emphasized the government’s commitment to exploring new markets while supporting the industry to add value to tea before it is exported.  

He highlighted the need for marketing strategies to penetrate non-traditional markets in Africa, Asia, and Arab countries. 

Statistics from KTDA reveal steady growth in earnings for tea farmers. In 2022, farmers earned KES 62.89 billion (US$487.3M), including Kes 25.78 billion (US$199.46M) for green leaf supplies and Kes 37.11 billion (US$287.1M) in bonuses.  

In 2023, earnings rose to Kes 67.70 billion (US$523.79M), with Kes 23.55 billion (US$182.2M) for green leaf and Kes 44.15 billion (US$341.59M) in bonuses. 

Despite this, tea consumption within Kenya remains low, with only 8 percent of locally produced tea consumed domestically, according to the Tea Board of Kenya.  

With 680,000 small-scale tea farmers in the country, low local consumption and high production levels have resulted in market gluts, leaving approximately 100,000 metric tons of tea unsold at the Mombasa Tea Auction for the past two years. 

To address this challenge, the government is promoting both exports and domestic consumption. Efforts are focused on tapping into emerging markets such as Russia, Japan, China, Nigeria, Korea, Switzerland, South Africa, and countries in the Middle East and Eastern Europe.  

Orthodox tea, which has high global demand, is being prioritized in these markets. Kenya’s traditional markets for Black Cut, Tear, and Curl (CTC) tea include the UK, Sudan, Poland, Kazakhstan, and Egypt. 

Additionally, the government has taken measures to enhance quality production. The Tea Board of Kenya has been directed to regulate the proliferation of private tea factories and ensure adherence to high standards of production at the farm level. 

To further support farmers, the government has allocated KES 2 billion (US$15.5M) to KTDA to refund smallholder farmers for fertilizer costs under a subsidy program. 

Fertilizer prices have been reduced from KES 3,400 (US$26.31) to KES 2,500 (US$19.34) per 50-kilogram bag due to the subsidy.  

The refunds, originally scheduled for January 5, 2025, will now be paid alongside November green leaf payments. 

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