Kenya’s tea earnings climb to US$1.44bn, but export disruption clouds outlook

Kenya’s tea export earnings rose by 2.87 percent in 2025 to 186.91 billion Kenyan shillings (US$1.44 billion), supported by stronger export volumes and wider market reach, according to new industry data, underscoring the crop’s continued importance to the country’s economy.

A report released Thursday by the Tea Board of Kenya showed that export earnings increased from 181.69 billion shillings recorded in 2024, while the total value of tea sold both domestically and internationally climbed 1.7 percent to 218.8 billion shillings (US$1.68 billion).

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The performance reinforces tea’s place as one of Kenya’s leading foreign exchange earners alongside coffee and horticultural products. But despite the improved annual returns, fresh concerns are emerging over the sector’s near-term outlook as shipping disruptions linked to the conflict involving Iran threaten to slow exports and weigh on farmer incomes.

According to the report, Kenya exported 652.80 million kilogrammes of tea in 2025, marking a 9.81 percent increase from 594.50 million kilogrammes the previous year. The growth was partly driven by the release of unsold inventories carried over from 2023 and 2024, which helped boost shipment volumes.

The expansion in exports also reflected Kenya’s growing international footprint. The East African nation exported tea to 100 destinations in 2025, up from 96 markets the year before. Its biggest buyers remained Pakistan, Egypt, the United Kingdom, the United Arab Emirates, and Russia, highlighting the continued strength of demand across Asia, the Middle East, Europe and parts of Eurasia.

However, the gains are being overshadowed by a fresh logistical bottleneck that could hurt the sector in 2026 if it persists. Industry players say around eight million kilogrammes of tea have been stranded in warehouses in the port city of Mombasa for weeks due to disruptions to maritime shipping routes.

The delays are linked to the wider instability affecting global trade corridors following the conflict in the Middle East, which has complicated shipping schedules and increased uncertainty for exporters across several African economies.

For Kenya, where tea remains a lifeline for hundreds of thousands of smallholder farmers and a major source of export revenue, prolonged delays could translate into slower foreign exchange inflows, storage costs, quality concerns and delayed payments to growers.

The situation is particularly sensitive because tea earnings are closely tied to rural livelihoods. Any disruption in export flows can quickly ripple through the value chain, affecting producers, transporters, warehouse operators, brokers and processors.

The latest data nevertheless shows that the sector remained resilient through 2025, supported by strong output and sustained demand from traditional markets. The increase in destinations also suggests Kenya is gradually diversifying its customer base, a factor that could help cushion against demand shocks in any one region.

Still, the industry now faces a more uncertain environment. Rising geopolitical tensions, higher shipping costs and possible supply chain interruptions could complicate trade in the months ahead, even as Kenya seeks to preserve its position as one of the world’s leading black tea exporters.

For now, the 2025 figures offer a positive snapshot of a sector that performed strongly last year. But whether that momentum can be sustained in 2026 may depend less on farm output and more on how quickly global trade routes stabilise.

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