Kenya Tea Industry Hits KSh218 Billion Despite Production Dip in 2025

Kenya's tea sector closed 2025 on a resilient note, recording a total marketed value of KSh218.79 billion despite a significant decline in production volumes, according to industry data. The performance underscores the sector's enduring importance to the Kenyan economy, which relies on tea as one of its top foreign exchange earners. Export revenues climbed to KSh186.91 billion, buoyed by a strategic push to reach new international buyers and diversify markets well beyond traditional trading partners.

Production for the year fell to approximately 550 million kilograms, an 8% drop compared to the previous season. Industry observers attribute the shortfall primarily to erratic rainfall patterns that disrupted growing cycles across key tea-producing regions including the Rift Valley highlands and Central Kenya. Yet despite the output contraction, the value realised per kilogram improved markedly, reflecting Kenya's ability to command stronger prices on the global market and the positive impact of quality-focused reforms rolled out by the government throughout the year.

One of the standout achievements of 2025 was Kenya's expansion of its tea export footprint from 96 to 100 countries, further cementing the country's standing as the world's leading exporter of black CTC tea. The Mombasa Tea Auction, which serves as the primary gateway for Kenyan tea exports, continued to attract buyers from across Asia, Europe, the Middle East, and Africa. Growing demand from emerging markets has helped cushion the sector against volatility in longer-established trading hubs, offering smallholder farmers a more stable revenue outlook going forward.

The government's commitment to modernising the sector was made tangible through a Sh3.5 billion injection directed at upgrading 19 tea factories across the country. The investment targeted improvements in processing infrastructure, energy efficiency, and quality control systems, all of which are central to Kenya's ambition of moving up the value chain and exporting a greater proportion of value-added products such as branded and packaged teas. The Kenya Tea Development Agency, which manages the bulk of smallholder tea operations, oversaw implementation of the factory upgrades as part of a broader sector reform agenda.

Improved factory efficiency and stronger market prices translated into higher payments for smallholder farmers, who form the backbone of Kenya's tea industry. Millions of growers across tea-producing counties including Kericho, Bomet, Nyeri, Kirinyaga, and Murang'a benefit directly from the sector's performance through the bonus payment system administered by KTDA-managed factories. The 2025 season demonstrated that even a production shortfall need not translate into reduced farmer earnings when value per kilogram rises and export markets widen in tandem.

Looking ahead, industry stakeholders and policymakers are cautiously optimistic about the sector's trajectory. Climate resilience remains the most pressing challenge, with unpredictable weather patterns likely to continue affecting annual yields unless mitigation measures such as irrigation expansion and drought-tolerant planting material are scaled up. Should rainfall stabilise and the factory upgrade programme continue to bear fruit, Kenya's tea industry is well-positioned to surpass the KSh218 billion benchmark in the years ahead and deepen its role as both a pillar of rural livelihoods and a cornerstone of national export revenues.