Kenya’s Tea Earnings Hit KSh 218.8 Billion as Reforms Begin to Reshape Sector Fortunes

Kenya, 5 April 2026 - Kenya’s tea sector has delivered a strong performance, with export earnings rising to KSh 218.79 billion ($ 1.7 billion) in 2025, underscoring the resilience of one of the country’s most important foreign exchange earners amid ongoing reforms.

The growth reflects a combination of improved global prices, sector restructuring and renewed efforts to stabilise returns for farmers, many of whom have faced years of volatility and declining incomes.

The rise in earnings comes at a time when Kenya’s tea industry is undergoing one of its most significant policy shifts in decades.

Recent reforms have focused on restructuring how tea is sold, marketed and priced, particularly through changes at the auction system and tighter regulations on direct sales. The aim has been to increase transparency, reduce exploitation by intermediaries and ensure farmers receive a larger share of export revenues.

These changes are beginning to show results.

Higher earnings suggest that pricing power is improving, even as the sector navigates shifting global demand patterns.

Kenya remains one of the world’s leading tea exporters, supplying key markets in Pakistan, Egypt, the United Kingdom and the Middle East.

In 2025, demand from these markets remained relatively stable, supporting export volumes and prices. But this stability cannot be taken for granted.

Global tea markets are increasingly influenced by geopolitical tensions, currency movements and changing consumer preferences. Any disruption, whether in trade routes, exchange rates or consumption trends, can quickly impact earnings.

A weaker Kenyan shilling has also played a role in boosting earnings.

Since tea is traded in foreign currency, depreciation of the local currency translates into higher shilling returns for exporters. This has provided a temporary cushion for the sector, even as production costs rise.

But this dynamic cuts both ways.

While exporters benefit, farmers still face higher input costs, particularly for fertiliser, transport and labour, many of which are tied to global prices.

At the heart of the reforms is a push to improve farmer welfare.