Kenya’s tea industry earns US$1.93B in 2024 amid increased production, policy reforms
KENYA – Kenya’s tea industry generated Kes 250 billion (US$1.93B) in revenue in 2024 from both local and international sales, the Tea Board of Kenya announced on Monday.
According to the board’s CEO, Willy Mutai, tea exports contributed Kes 215 billion (US$1.66B), while local sales accounted for Kes 18 billion (US$139.26M). Additionally, Kes 18 billion came from committed tea sales.
“We made Kes 215 billion from export earnings, capped at Kes 181.69 billion, plus Kes 18 billion from local sales. There is also what we call committed teas, whose sale amounted to Kes 18 billion,” said Mutai.
Increased tea production in 2024
Kenya’s tea production saw a notable increase in 2024, rising to 598 million kilograms, up from 570 million kilograms in the previous year. Mutai attributed a significant portion of this growth to women, emphasizing their critical role in the tea value chain across Kenya’s 834 tea farms.
Tea remains one of Kenya’s top export commodities, alongside cut flowers, tropical fruits, and coffee.
Pakistan remains the largest importer of Kenyan tea, followed by Egypt, the U.K., and the U.A.E.
Government reforms to improve tea pricing
To address market challenges, the Kenyan government and the Kenya Tea Development Agency (KTDA) implemented several measures to stabilize tea prices and reduce unsold stock.
In August 2024, the government suspended the minimum reserve price, aiming to stimulate purchases and clear stockpiles that had been avoided by buyers.
Additionally, a policy was introduced prohibiting tea sales below the cost of production, with factory directors held accountable for managing sales.
Factories were also encouraged to enhance tea quality, and directors were tasked with working closely with brokers to establish competitive pricing strategies.
Plans to support value addition and farmers
To further strengthen the tea sector, the government pledged to review levies and taxes on tea, aiming to promote value addition industries. Financial assistance was also committed to help older factories upgrade their operations.
Newly elected KTDA Chairman, Chege Kirundi, emphasized that the board is actively developing and updating policies to ensure farmers benefit from their tea investment.
He stressed the importance of sustainability across all business pillars and highlighted leadership and stakeholder engagement as key to addressing sector challenges.
He noted that some policies and regulations negatively impacted smallholder tea factories, arguing that stronger leadership and better engagement with stakeholders, including the government, could have prevented these issues.
“Some of these could not have been enacted if leadership had played its role and if there had been adequate engagement from all stakeholders,” he said.
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