Tea Farmers Earn Ksh187 Billion as Gov't Reforms Transform Industry

Kenya's tea industry has recorded significant gains under government reforms, with export earnings rising to Ksh186.9 billion in 2025.

According to Tea Board of Kenya (TBK) data, export earnings increased from Ksh136.5 billion in 2021 to Ksh181.6 billion in 2024 before reaching Ksh186.9 billion in 2025.

Tea production has also remained strong, increasing from 537 million kilogrammes in 2021 to 598 million in 2024 and 550 million in 2025.

TBK CEO Willy Mutai said the interventions implemented over the past four years had started producing results, with farmers recording higher green leaf payments.

The average payment increased from Ksh35 per kilo in 2021 to Ksh64 in 2024 and Ksh56 in 2025.

"Total tea production increased from 537 million kilogrammes in 2021 to 598 and 550 million in 2024 and 2025, respectively. Export earnings increased from Sh136.5 billion in 2021 to Sh181.6 and Sh186.9 billion in 2024 and 2025 respectively," he said.

The government is targeting payments of at least Ksh100 per kilo by next year through improved tea quality, lower production costs, increased value addition, more competitive selling channels and stronger farmer representation.

Agriculture Cabinet Secretary Mutahi Kagwe said the government was committed to developing an industry that would generate better and more sustainable returns for farmers while strengthening Kenya’s position in global markets.

"Tea is the backbone of many rural economies in Kenya. Hundreds of thousands of households depend directly or indirectly on tea for their livelihoods.

"When tea prices are stable and remunerative, families can educate their children, access healthcare, invest in their farms and contribute to local economic development," he added.

Kagwe said expanding the industry's market base was another major priority, with Kenya seeking to increase its presence beyond traditional destinations.

"Kenya’s tea has long enjoyed strong demand in traditional markets, including Pakistan, Egypt, the United Kingdom, Sudan, Afghanistan, the United Arab Emirates and other destinations.

"We value these markets and will continue to strengthen our commercial relationships with them. However, we must also expand our presence in new and high-growth markets," he further said.

Elsewhere, the government has also invested in modernising smallholder tea factories, spending Ksh850 million on machinery and equipment for 17 factories.

Kericho received Ksh248.6 million, followed by Nyeri with Ksh131.6 million, Bomet Ksh104.8 million, Nandi Ksh79.1 million, Murang’a Ksh62.1 million, Nakuru Ksh50.2 million, Trans Nzoia Ksh44.6 million, Nyamira Ksh36.6 million, Tharaka Nithi Ksh35 million and Kirinyaga Ksh28.7 million.

Fertiliser support has reached more than 650,000 smallholder tea farmers, who have received about 290,000 tonnes of subsidised fertiliser since 2022.

The government has also introduced tax measures to promote value addition and improve the competitiveness of Kenyan tea.

These include the removal of value-added tax on tea purchased from factories for value addition under the Finance Act, 2023, and the zero-rating of packaging materials for tea value addition under the Finance Act, 2025.

A Ksh100 million grant was also given to Ketepa to establish a common-user facility for tea value addition.

Market development programmes have targeted traditional, emerging and new markets, including Pakistan, Egypt, the UAE, UK, Russia, Iran, North America, China, Hong Kong, Jordan, Saudi Arabia, Germany and Malaysia.

The government has additionally supported tea factories through the Strategic Tea Quality Improvement programme while continuing to sensitise farmers on quality standards.