Kenya’s Tea Exports Rebound as Auction Prices Hit 3-Year High

Kenya’s tea exports rebounded strongly in Q1 2024, with auction prices averaging Ksh285 per kilo—the highest since 2021—driven by supply shortages in rival producers India and Sri Lanka. According to the Tea Board of Kenya, export earnings rose by 18% to Ksh27.4 billion, with key buyers including Pakistan, Egypt, and the UK. The favorable prices offered relief to smallholder farmers who endured prolonged low payouts in 2022–2023. Improved weather conditions and fertilizer subsidies also boosted yields. However, concerns linger over rising production costs and aging tea bushes. The government pledged Ksh3 billion to rejuvenate 15,000 hectares of tea farms this year. Additionally, value addition efforts—such as branded Kenyan tea in global supermarkets—are gaining traction, with exports of packed tea up 12%. The sector employs over 3 million Kenyans directly or indirectly. Officials urge sustained investment in logistics and climate-resilient farming to secure long-term competitiveness.