Kenya’s tea industry has seen a remarkable surge in recent years, driven by higher production, stable market prices, and expanding global demand. According to the Tea Board of Kenya (TBK), national tea production increased from 458.85 million kilograms in 2019 to 570.26 million kilograms in 2023, positioning Kenya as the world’s third-largest producer after India and China. Export earnings also hit a record Sh215.21 billion ($1.7 billion) in 2024, up from Sh180.5 billion ($1.4 billion) the previous year, with shipments reaching 96 countries. Pakistan remained the largest importer, followed by Egypt, the UK, and the UAE.
The industry relies heavily on smallholder farmers, who produce approximately 60% of Kenya’s tea and are organized through the Kenya Tea Development Agency (KTDA). Large-scale estates, including Unilever Tea Kenya and James Finlay, contribute the remaining output. Despite the growth, the first quarter of 2025 saw a drop in production, attributed to poor rainfall and global trade disruptions. Industry leaders stress that climate change remains a major threat to yields, prompting investments in drought-resistant tea varieties and modern irrigation systems. KTDA’s climate risk mapping predicts potential yield reductions of up to 20% if adaptation measures are not scaled up.
Kenya is now focusing on boosting local value addition to maximize earnings and create jobs. Only 5% of tea exports in 2024 were processed or packaged locally, but the government aims to raise this to 50% by 2027. Initiatives include producing specialty teas, flavoured varieties, and instant tea products, which can increase smallholder incomes by up to 40%. Entrepreneurs like Flora Mutahi of Melvin Marsh International are already tapping into these opportunities, producing fully processed, branded teas for both local and global markets. Experts say improving packaging standards, expanding brand promotion, and aligning public and private efforts are essential to capturing a larger share of the lucrative global tea market.