The Government has intensified efforts to expand international markets for Kenyan tea and coffee, with a renewed focus on value addition, factory modernisation and strategic partnerships to increase export earnings and improve returns to farmers.
The initiative combines diplomatic engagement with the European Union (EU), to secure wider market access with domestic investments aimed at strengthening processing capacity, improving product quality and enhancing the competitiveness of Kenya’s agricultural exports.
Tea remains one of Kenya’s leading export commodities and a major contributor to the economy, supporting approximately five million direct and indirect jobs across the value chain.
Data from the Tea Board of Kenya (TBK), shows that tea production increased by 24 per cent, from 458.85 million kilogrammes in 2019 to 570.26 million kilogrammes in 2023, underscoring the crop’s importance to the country’s agricultural sector.
Kenya is the world’s third-largest tea producer after China and India, with the commodity generating record export earnings of Sh215.21 billion (US$1.7 billion) in 2024, up from Sh180.5 billion (US$1.4 billion) in 2023.
The increase was partly supported by the expansion of export destinations, with Kenyan tea reaching 96 countries in 2024, compared with 92 the previous year.
Pakistan remained the leading destination, importing 206.27 million kilogrammes, equivalent to 34.7 per cent of Kenya’s total tea export volume.
Other major markets included Egypt, which imported 86.90 million kilogrammes; the United Kingdom (57.44 million kilogrammes); the United Arab Emirates (30.50 million kilogrammes); and Russia (28.46 million kilogrammes).
India imported 17.13 million kilogrammes, followed by Saudi Arabia at 15.92 million kilogrammes, Yemen at 14.13 million kilogrammes, Iran at 13 million kilogrammes and China at 12.42 million kilogrammes.
The ten leading destinations accounted for approximately 81 per cent of Kenya’s total tea export volume in 2024, highlighting the importance of established markets, while underscoring the need to diversify destinations to reduce overreliance on a limited number of buyers.
Despite the strong export performance, the sector experienced a decline in production during the first quarter of 2025, raising the importance of strengthening productivity, improving access to agricultural inputs and investing in modern processing facilities.
Tea output declined to 54.36 million kilogrammes in January 2025, from 58.95 million kilogrammes in the corresponding month of 2024. February production fell to 44.61 million kilogrammes, compared with 55.44 million kilogrammes a year earlier, while March output dropped to 37.93 million kilogrammes from 54.34 million kilogrammes in March 2024.
Against this backdrop, the Government is pursuing measures to strengthen production capacity, improve access to international markets and increase the value earned from agricultural exports.
In Rome, Italy, Principal Secretary for Agriculture, Dr. Kipronoh Ronoh Paul, led a Kenyan delegation in bilateral talks with the European Union team, headed by Cristina Miranda Gozalves, Head of Unit for Sustainable Agri-Food Systems, on the sidelines of the Food and Agriculture Organization (FAO) Conference.
The discussions focused on expanding market access for Kenyan tea and coffee, promoting agro-processing and value addition, and strengthening cooperation on fertiliser access to enhance agricultural productivity and sustainability.
The Government is also leveraging the Kenya–European Union Economic Partnership Agreement (EPA) to maximise trade opportunities, expand access to the EU market and improve the competitiveness of Kenyan agricultural exports.
The engagement is intended to support the diversification of export destinations, while encouraging investment in processing, packaging and other value-adding activities that can increase the value of Kenyan produce before it reaches consumers.
The market expansion drive is being complemented by government-backed financing to modernise tea factories and enhance their production capacity.
The Government has allocated Sh3.5 billion through a low-interest financing facility administered by the Kenya Development Corporation (KDC) to support factories seeking to replace ageing equipment and improve operational efficiency.
The facility carries an interest rate of five per cent, offering factories an alternative to commercial bank financing and providing an opportunity to upgrade machinery, improve processing capacity and strengthen competitiveness.
The Kenya Tea Development Agency (KTDA), has also been urged to utilise a separate KSh3.7 billion government-backed loan facility established to support the modernisation of tea factories.
Speaking during the handover of Sh7 billion in deposits owed to KTDA and recovered from the collapsed Chase Bank and Imperial Bank, President William Ruto said the financing facility, to be disbursed through KDC, would enable tea factories to enhance their production capacity and pursue value addition as the Government explores additional markets for Kenyan tea.
The modernisation programme is expected to help factories improve processing efficiency, upgrade equipment and explore opportunities to produce higher-value tea products, strengthening the industry’s ability to compete in international markets.
Value addition remains a key priority for the tea sector, where increased processing and product diversification could enable Kenya to capture a greater share of the value generated along the international supply chain.
For coffee, the Government’s engagement with the EU presents an opportunity to strengthen market access while encouraging investment in processing and product development to increase the value of Kenyan coffee in overseas markets.
By combining trade diplomacy, affordable financing and investments in agro-processing, the Government aims to strengthen agricultural value chains and ensure that expanded export opportunities translate into better returns for farmers.
The initiatives also align with broader efforts to improve agricultural productivity, strengthen food security and build a more resilient agricultural sector capable of generating employment, attracting investment and earning foreign exchange.
As Kenya pursues new international markets, the focus is increasingly shifting beyond the volume of tea and coffee exported to the value earned from each product, with factory modernisation, product diversification and value addition expected to play a central role in improving the competitiveness of the country’s agricultural exports.
The Government’s strategy is therefore aimed at ensuring that farmers and other players across the agricultural value chain benefit from improved market access, higher export earnings, stronger processing capacity and sustained demand for Kenyan produce.
by Absalom Namwalo
