Tea sector Beats Economic Challenges to Post Sh215 Billion in 2024 Revenues

By Harrison Kivisu

Email, thecoastnewspaper@gmail.com

Kenya’s 2024 tea earnings grew by nine percent to post Sh215.21 billion out of which Ksh181.69 billion was earned from exports.

The report unveiled by the agriculture cabinet secretary Mutahi Kagwe on Thursday, March 13, 2025 indicated that Ksh18.00 billion came from local sales and Ksh15.52 billion from committed stocks.

“This was an increase of nine percent from the marketed value of Kshs196.97 billion recorded in 2023,” he said during the report launch at the East Africa Tea Trade Association EATTA Center auditorium.

The report prepared by the Tea Board of Kenya (TBK) indicates that the export earnings recorded improved performance of 1% (Ksh1.12 billion) to stand at Ksh181.69 billion from Ksh180.57 billion recorded in 2023.

Higher export earnings were attributed to increased export volume by 14 percent (71.59 million kgs) from 522.92 million kgs recorded in 2023 to 594.50 million kgs.

However, compared to the year 2023, the export prices and the exchange rate to the US dollar were less favorable to the earnings.

The average export unit price was slightly lower in dollar terms at USD 2.27 per kg compared to USD 2.47 in 2023 while the mean exchange rate of the Kenya shillings to the USD was lower at 134.82 compared to 139.85.

It further indicates that in 2024, Kenya tea was shipped to ninety-six (96) export destinations compared to ninety-two (92) in the year 2023.

Pakistan maintained its position as the leading export destination for Kenya tea having imported 206.27 Million Kgs, which accounted for 34.7% of the total export volume.

In terms of value, the consignment to Pakistan was worth Ksh70 billion. Other key export destinations for Kenya tea were Egypt whose import volume was 86.90 Million kgs worth Ksh23.96 billion; UK (57.44 million kgs valued at Ksh16.99 billion); UAE (30.50 million Kgs valued at Ksh10.27 billion); Russia (28.46 million kgs, Ksh7.43 billion); India (17.13 million kgs, Ksh3.94 billion); Saudi Arabia (15.92 million Kgs, Ksh6.02 billion); Yemen (14.13 million Kgs, Ksh5.52 billion); Iran (13 million Kgs, Ksh4.26 billion); and China (12.42 million Kgs, Ksh2.73 billion).

The top ten export destinations, majority of which are traditional markets for Kenya tea accounted for 81% of Kenya tea export volume.

Compared to the year 2023, more exports were recorded in traditional markets with Egypt recording the highest increase in export volume by 21.01 million kgs.

India recorded the second highest increase by 11.86 million Kgs followed by UK 11.29 million Kgs; Russia (10.11 million Kgs); Saudi Arabia (8.09 million Kgs); China (7.79 million Kgs); Chad (4.69 million Kgs) and Poland (3.49 million Kgs).

Notably, Chad is significantly growing as an emerging market for direct imports from Kenya.

Prior to the conflict in Sudan, Chad which is a land locked country, would get its import supplies including tea from Sudan.

However, due to the blockage of trade routes from Sudan, Chad has now shifted to Nigeria and Cameroon as alternative import transshipment routes.

Just like Chad, South Sudan is also rapidly growing as an emerging market for Kenya tea.

Similarly, there were improved exports to other traditional and emerging markets such as Kazakhstan; Somali; Switzerland; Oman; Nigeria; Ukraine; Sri Lanka; USA; Germany; South Africa and Japan.

Out of the total exports of value-added tea, the United Kingdom accounted for the highest volume at 35.6% and was followed by Sudan at 14.4%, Oman (12.7%); Somalia (11.6%); Yemen (6.4%), and Burkina Faso (3%).

Other significant importers of value-added teas included Cote D’ivoire; Chad; Ireland; Pakistan; South Sudan; Saudi Arabia; Mali; United States; Eritrea.