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Kenya’s tea export revenue contract on dry weather spell

Simon Osuji by Simon Osuji
May 21, 2025
in Finance
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Kenya’s tea export revenue contract on dry weather spell
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  • Kenya’s tea exports fell sharply by 20 per cent to 157,514 tonnes in the first quarter of 2025 owing to a prolonged dry spell in growing areas.
  • Statistics show that between January and March, Kenya earned $356M from tea exports—down from $446M.
  • Kenya’s tea has always found a steady market in Pakistan, the United Kingdom, Russia, Sudan and Chad.

Kenya’s tea sector, long a pillar of the country’s export economy, is feeling the sting of unpredictable weather patterns. According to the latest data from the Kenya National Bureau of Statistics (KNBS), revenue from Kenya’s tea exports fell sharply by 20 per cent in the first quarter of 2025, a downturn attributed to lower shipment volumes following a prolonged dry spell in tea growing areas.

Between January and March, Kenya earned KES46.07 billion (about $356 million) from tea exports—down from $446 million recorded during the same period in the comparable quarter in 2024. The decline comes at a time when the East African country is grappling with extreme weather conditions that have disrupted production across key agricultural zones.

Production shrinks as the weather withers yields

The KNBS report shows that tea export volumes dropped to 157,514 tonnes, a 7.3 per cent decline from the 169,830 tonnes shipped during the same quarter last year. This significant shortfall in volume, industry insiders say, is the direct result of a dry and unyielding climate that blanketed major tea-growing regions in the early part of the year.

“The three months were characterized by unusually dry weather,” said Willy Mutai, Chief Executive Officer of the Tea Board of Kenya (TBK). He added that tea production was severely disrupted in February, with output falling by 21 per cent in the east of the Rift Valley and 18.6 per cent in the west.

This uneven climate has compounded challenges for tea farmers and exporters already under pressure from fluctuating global demand and volatile prices in key markets.

Tea export market shake-up and the China frontier

Traditionally, Kenya’s black tea has found a steady market in countries such as Pakistan, the United Kingdom, Russia, Sudan and Chad. However, with revenues shrinking and global competition intensifying, the government and private sector players are looking eastward for a solution.

Recently, Kenya entered into agreements with Chinese firms to boost exports to China, a populous tea-loving nation with a rapidly growing middle class and appetite for variety. The ambitious plan seeks to raise exports to the Asian giant from 12.2 million kilograms in 2024 to 50 million kilograms by 2030.

On May 12th, Agriculture Cabinet Secretary Mutahi Kagwe hosted Mr. Zhang Chaobin, Chairman of Benny Tea Industries (China), as part of efforts to grow Kenya’s footprint in the Chinese tea market.

A day later, President William Ruto hosted Fuzhou Benny Tea Industries Chairman Zhang Chaobin at State House Nairobi to discuss ways of increasing access of Kenyan tea to the Chinese market.

Benny Tea Industries ranks among the top three companies in China’s supply chain in tea production and retail. In an update, Dr. Ruto said Benny Tea Industries is exploring ways of fulfilling their annual requirements of orthodox tea from the Kenyan market. Zhang Chaobin also committed to invest in modern orthodox tea production factories in selected tea-growing counties, as well as improving value addition of Kenya’s orthodox tea.

All these measures aim at diversifying tea export destinations and could prove vital in cushioning Kenya’s tea industry from over-reliance on a few markets—especially as geopolitical uncertainties and economic headwinds buffet international trade.

Kenya tea export
In mid May 2025, President William Ruto hosted Fuzhou Benny Tea Industries Chairman Zhang Chaobin at State House, Nairobi, to discuss ways of increasing access of Kenyan tea to the Chinese market as part of shoring up shipments for the country’s key forex earner. (Source/State House Nairobi)

Tea industry: A critical economic pillar under strain

Despite the dip in quarter one tea exports, greenleaf remains one of Kenya’s top foreign exchange earners, alongside tourism and horticulture. The sector supports millions of livelihoods, particularly in rural areas where tea farming is a way of life passed down through generations.

Yet, this latest slump serves as a stark reminder of the vulnerabilities within Kenya’s rain-fed agricultural value chain, especially in the face of climate change. As weather patterns grow increasingly unpredictable, stakeholders are being urged to invest more in climate-resilient farming practices, irrigation infrastructure, and early-warning systems to mitigate future shocks.

Read also: Kenya’s Tea Exports Increase 19 Per Cent In Q1,2024





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