The tea sector in Kenya has been hailed for its pivotal contribution to economic growth, rural development, and poverty reduction.
The East African Tea Trade Association (EATTA) chairman Abdi Hussein said that technological advancements such as precision agriculture and sustainable farming practices have boosted yields and improved tea quality which in return has increased earning by farmers.
Hussein, speaking in Nairobi on Thursday during a National Tea Stakeholders Forum, said that improved logistics and supply chain systems have also helped African producers access global markets more efficiently.
The Mombasa Tea Auction, a global reference point for tea prices, recorded notable stability in 2025 with auction absorption rising sharply to 84 percent, from 51 percent during the same period in 2024. Kenya Tea Development Agency (KTDA) East of Rift Valley and Rwanda led in price performance, averaging $2.98 and $2.92 per kilogram respectively.
According to Hussein, Kenya has continued holding its position as the world’s leading exporter of black tea, as well as the continent’s significant strides in modernising production.
“Despite these gains, the sector faces mounting challenges. Climate change continues to disrupt weather patterns crucial for tea production, while legislative and regulatory hurdles slow industry progress. Farmers, particularly smallholders, remain vulnerable to fluctuating global prices and rising production costs,” said Hussin.
He added that competition from emerging tea producers and shifting global consumer preferences toward specialty teas present further obstacles.
However, Hussein emphasised that these trends also create opportunities for African producers to diversify and innovate.
Hussein pointed to the rising global demand for specialty and high-quality teas, calling on the region to capitalise on its unique territory and sustainability credentials.
He underscored value addition such as flavored teas and ready-to-drink products as a pathway to attract younger consumers and increase farmers’ profitability.
He also praised the African Continental Free Trade Area (AfCFTA) for its potential to expand intra-African agricultural trade and reduce reliance on traditional export markets.
Looking ahead, Hussein projected a promising outlook for the sector, reaffirming EATTA’s commitment to promoting sustainability standards, strengthening partnerships, and advocating for equitable distribution of benefits within the tea value chain.
He urged stakeholders to remain united in securing a prosperous future for African tea.
EATTA Managing Director George Omuga said that as an association they managed to hit key milestones in 2025 where they achieved significant improvements in market stability and regulatory reforms.
Omuga credited EATTA’s advocacy with securing several major policy wins where the association successfully blocked the proposed Sh375 cleaning charge on tea exports and worked with the Kenya Revenue Authority (KRA) to clarify tax requirements affecting members.
“EATTA’s lobbying efforts also led to the removal of taxes on tea packaging materials within the Finance Act 2025 and facilitated a reduction in Kenya Ports Authority (KPA) charges that had previously hampered exports,” said Omuga.
He disclosed that the association reported 32 new member registrations in 2025 and welcomed DTB as a new settlement bank to strengthen financial services. EATTA also achieved a 98 percent success rate in resolving member issues, demonstrating its commitment to efficient service delivery.
Omuga highlighted that they also undertook sponsorship of key events including the Members Forum, Golf Tournament, and the landmark Orthodox Tea Expo all geared to help boost engagement across the tea community.
“EATTA expanded its regional footprint through engagements with the Uganda Tea Association and interactions with Sri Lankan industry stakeholders. The association also intervened to secure the release of tea shipments stranded at Port Sudan,” he said.
According to Omuga, through partnership with government agencies, EATTA advanced a comprehensive Export Market Strategy targeting China, Iran, the CIS region, Europe, and Morocco with the launch of the Orthodox Tea Auction in 2025 marking a new milestone, creating fresh trading opportunities for producers.
Throughout the year, Omuga said, EATTA held discussions with the Cabinet Secretary for Agriculture, the Senate Committee, and industry regulators, addressing taxation, audit complexities, business processes, and the Tea Levy. Virtual meetings further united stakeholders around the implementation of tea regulations.
Omuga commended members for their resilience and collaboration. “Together and united, we can overcome challenges and seize new opportunities,” he said, urging stakeholders to maintain momentum in strengthening the sector.
by Joseph Ng’ang’a
