Kenya’s tea exports reach Sh215 billion in 2024 with Pakistan topping market
According to CS Kagwe, Sh181 billion came from exports, Sh18 billion from local sales and Sh15 billion from committed stocks.
Kenya generated Sh215 billion from tea sales in 2024, an increase from Sh196.2 billion in 2023.
According to Agriculture Cabinet Secretary Mutahi Kagwe, Sh181 billion came from exports, Sh18 billion from local sales and Sh15 billion from committed stocks.
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"This represents a nine per cent increase in revenue from the Sh196.97 billion recorded in 2023," Kagwe said.
"Despite facing various challenges in the global market, Kenya's tea sector has remained resilient and continues to thrive."
The Statistics from the Tea Board of Kenya also show that total earnings from exports stood at Sh181.69 billion, marking a one per cent improvement from Sh180.57 billion in 2023. The increase was largely attributed to a 14 per cent rise in export volume, which grew from 522.92 million kilograms in 2023 to 594.50 million kilograms in 2024.
However, the growth was partially offset by lower export prices and an unfavourable exchange rate.
“The average export price per kilogram dropped to $2.27 (Sh293.90) from $2.47 (Sh319.79)in 2023, while the mean exchange rate weakened to 134.82 from 139.85,” the Statistics show.
Top importers
Kenya's tea was shipped to 96 destinations in 2024, up from 92 in 2023. Pakistan remained the largest importer, purchasing 206.27 million kilograms worth Sh70 billion, accounting for 34.7 per cent of the total export volume.
Other top importers included Egypt (86.90 million kilograms, Sh23.96 billion), the UK (57.44 million kilograms, Sh16.99 billion), and the UAE (30.50 million kilograms, Sh10.27 billion).
Russia, India, Saudi Arabia, Yemen, Iran, and China also ranked among the top 10 export destinations, collectively accounting for 81 per cent of Kenya’s tea exports.
Emerging markets such as Chad and South Sudan showed notable growth, with Chad increasing its direct imports due to trade route disruptions in Sudan. Traditional markets such as Egypt, India, and the UK recorded significant increases in import volumes as well.
The Tea Board of Kenya also noted that tea exports to Sudan declined by 12 per cent due to internal conflict, while Pakistan’s imports fell by two per cent due to changes in its sales tax policy. Additionally, disruptions along the Red Sea shipping route, caused by attacks on vessels by Yemeni terrorist groups, forced shipping lines to use the longer and costlier southern route around Africa.
To enhance market expansion, the Tea Board of Kenya, in collaboration with industry stakeholders, participated in trade exhibitions in the UAE, Iran, Turkey, Ghana, Germany, China, and Hong Kong. Kenya exported 28.90 million kilograms of value-added tea in 2024, representing a 10 per cent increase from 2023. The UK remained the largest market for value-added tea, followed by Sudan, Oman, Somalia, Yemen and Burkina Faso.
"Value addition remains a key priority," Kagwe noted.
"The removal of VAT on value-added teas through the Finance Act 2023 has significantly boosted exports in this category."
Domestically, tea sales increased to 37.50 million kilograms, generating Sh18 billion in revenue, up from Sh16.4 billion in 2023.
Favourable weather
Kenya's tea production in 2024 also rose by 4.95 per cent to 598.47 million kilograms, up from 570.26 million kilograms in 2023.
According to the Board, the increase was driven by favourable weather, improved fertiliser distribution, and expanded factory processing capacity. Under the government’s subsidy program, 194,000 metric tonnes of fertiliser were provided to farmers at a subsidised rate of Sh2,500 per 50-kilogram bag.
Despite higher production, the Board noted that auction sales struggled, with only 382 million kilograms sold out of 723 million kilograms offered, resulting in a lower absorption rate of 55 per cent compared to 60 per cent in 2023.
“The average auction price also declined to $2.19 (Sh283.54) per kilogram from $2.24 (Sh290.01) in 2023, mainly due to reduced demand amid economic recessions in key markets such as Russia, Sudan, Pakistan, and Egypt,” it said.
To address these challenges, Kagwe said the government has initiated discussions with Chinese tea firm Chali Tea to establish a Common User Facility (CUF) in a Special Economic Zone for value addition. Additionally, Kenya launched the China-Kenya Tea Trade Centre in Fujian province in May 2024 to enhance distribution in the Chinese market.
Kagwe reiterated that the government aims to support the establishment of warehousing facilities in Ghana, the Democratic Republic of Congo, and the UAE to improve the efficiency of value-added tea distribution.
"We are committed to ensuring Kenya remains a leading player in the global tea market by enhancing quality, expanding markets, and supporting value-addition initiatives," he said.
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