BUSINESS

Kenya’s Tea Exports to Iran Get Major Boost After Trade Talks

Share
Lee K
Trade Cabinet Secretary, Lee Kinyanjui. PHOTO/@GovLeeKinyanjui/X
Share

Cabinet Secretary for Trade, Lee Kinyanjui, has highlighted the importance of tea exports in Kenya’s trade relations with Iran.

He noted that tea remains Kenya’s leading export to Iran, accounting for over 90 per cent of the trade between the two nations.

n 2024, Kenya’s tea exports to Iran were valued at approximately $50.8 million (about Ksh 7.1 billion), while imports from Iran stood at $18 million (around Ksh 2.5 billion).

Despite the recent challenges, Kenya continues to enjoy a healthy trade surplus with Iran. Kinyanjui expressed optimism about the future.

“Today, I held productive discussions with H.E. Dr. Gholamreza Nouri Ghezalcheh, Minister of Agricultural Jihad of the Islamic Republic of Iran, on expanding trade and deepening our collaboration. I am delighted that a Joint Committee has been formed to resolve the impasse that has hindered our tea exports. This is a big win for our farmers and a boost for our growing tea industry,” he said.

The formation of the Joint Committee follows a diplomatic breakthrough during the 7th Session of the Kenya–Iran Joint Commission for Cooperation (JCC) held in Nairobi.

The committee aims to address trade barriers and restore trust between the two countries. Agriculture Cabinet Secretary Mutahi Kagwe emphasised the importance of protecting Kenya’s tea sector from unscrupulous traders who damage its reputation. He noted that the ban had caused significant losses to farmers and exporters.

The dispute arose from a scandal involving Cup of Joe Limited, a Kenyan firm accused of importing low-grade tea, blending it, and re-exporting it to Iran as premium Kenyan tea.

The company has since been deregistered by the Tea Board of Kenya and is set to face prosecution for its role in the scandal.

Before the suspension, Iran was among Kenya’s top importers of tea. In 2024, Iran imported 13 million kilograms of Kenyan tea valued at KSh 4.26 billion. Pakistan remains the largest importer, accounting for 34.7 per cent of Kenya’s total tea exports worth Ksh 70 billion. Other major export destinations include Egypt, the UK, the UAE, Russia, India, Saudi Arabia, and Yemen.

The Joint Committee is expected to develop a framework to restore trust and ensure compliance with quality standards, with the ultimate goal of resuming tea exports before the end of the 60 days.

This development is a positive step towards revitalising Kenya’s tea industry and restoring its position in the Iranian market.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
Oil rig at the Ngamia-1 well in the Lokichar basin.
BUSINESS

Govt: Decade-Long Stalled Turkana Oil Project Set to Begin Next Year

Kenya is on the verge of finally unlocking commercial oil production in...

CBK headquarters in Nairobi
FEATURED STORY

CBK Receives Bids Worth KSh53.1Billion at Auction, a 132.8% Oversubscription

CBK(Central Bank of Kenya) received bids worth KSh 53.1 Billion at the...

From left - KCB Bank Kenya Director of Retail Banking, Jane Isiaho and Visa Country Manager and Senior Business Development Leader for Kenya, South Sudan and Somalia, John Njoroge during the launch of Tap-To-Phone solution which will enable business owners to accept card payments directly on their Near-Field Communications (NFC) enabled Android smartphones without the need for a traditional point-of-sale (POS) machine.
BUSINESS

KCB and Visa Partner to Enable Card Payments via Smartphones

KCB Bank Kenya has partnered with Visa to launch a Tap to...

Outside Central Bank of Kenya (CBK) headquarters in Nairobi.
BUSINESS

Treasury, CBK Sound Alarm as Financial Health Collapses Despite Inclusion Boom

The National Treasury and the Central Bank of Kenya (CBK) have released...