Kenya exported processed tea amounting to 25.36 million Kgs, which represented 4% of the total exported volume.
Kenya exports of tea in value added form were shipped to over Seventy (70) market destinations. Out of Kenya total exports of value-added tea, United Kingdom accounted for the highest volume at 32.4% and was followed by Sudan at 17.4%, Oman 10.7%; Somalia 9.6%; and Sudan at 4.5%.
The five market destinations accounted for 74.7% of the Kenya tea exported in value-added form.
Kenya processed tea export destinations
Other significant export markets for Kenya value-added teas included Cote D Ivoire; United States of America; Burkina Faso; Ireland; Ghana; and Mali.
The exports in value teas added form included tea bags and loose tea packed in retail packages as well as tea extracts and instant teas from local tea factories.
Kenya Tea Exports in value added form have been boosted by removal of VAT on teas purchased for value addition through the amendments to the VAT Act.
To boost value addition further, the Kenya Government said in the Tea Industry Report 2025, that it will support establishment of Common User Facilities for value addition by providing fiscal and administrative incentives to facilitate tea packaging prior to export at competitive rates.
To kick start the process, discussions have been held between Tea Board of Kenya and international/local private tea companies interested in setting up a Common User Facility (CUF) for value addition in a Special Economic Zone.
In addition, the Kenya Government will support establishment of Warehousing facilities for storage of value-added tea in the target markets (specifically Ghana; DRC Congo; UAE) to ease its distribution and mitigate against market access challenges of shipment logistics.
China-Kenya tea trade centre in FUJIAN province has already been launched to facilitate distribution of Kenya tea in that market.
In 2025, Tea Sales in the local market was slightly lower at 36.78 Million Kgs against 37.50 in 2024 and 37.30 Million Kgs recorded in 2023. This happens as the trend where farmers are cutting their tea bushes and switching their land to other uses, including real estate development, is slowly catching on.
The sale of tea in the domestic market generated KSh 19.13 Billion up from KSh 18 Billion generated in 2024.
To spur domestic consumption of locally produced tea, the Government through the Finance Act 2025, exempted tea from VAT and Zero-rated packaging materials for tea as an incentive to enhance its affordability.
The Kenya Government also introduced an exercise tax of 25% on imported tea.
Kenya’s tea production in 2025 declined by 48.10 Million Kgs (8.04%) to stand at 550.37 Million Kgs. It was also lower compared to 598.47 Million Kgs recorded in 2024 and 570.26 Million Kgs for the year 2023.
Lower crop production was attributed to unfavourable weather conditions that was characterized by erratic and poorly distributed rainfall.
Out of the total production of 550.37 Million Kgs of made tea, production of Specialty tea was about 2.82% (15.49 Million Kgs). Out of the total Specialty tea, Black Orthodox accounted for the highest proportion at 99% equivalent to 15.34 Million Kgs, while the rest was majorly Green and purple (0.7%) equivalent to 108,489 Kgs.
In 2025, the quantity of Kenya tea sold through the auction channels stood at 379.24 Million Kgs, which included stocks brought forward from the previous year. This represented absorption rate of 73% compared to 55% in 2024.
Higher absorption rate was on account of removal of reserve prices and lower supply occasioned by and decreased production coupled with improved demand in the key markets. During the year, most of the markets were active at the auction while a few others maintained low buying participation.
However, some of the markets that absorb BP1 grade across such as Sudan and Iran did not participate at the auction.
Consequently, the average auction price for Kenya tea in the year 2025 was slightly lower at US$ 2.15 per Kg against US$ 2.19 US$ realized in 2024 and US$ 2.24 in 2023.
ALSO READ: Tea Industry in Kenya Earns KSh 218.8 Bn Despite Global Economic Shocks
Leave a comment