Tea market in Kenya

Earlier Report Observations

From 2018 to 2019, Kenya's tea market volume declined from 1 653 thousand tons to 1 528 thousand tons. This downturn coincided with a period of falling international tea prices caused by global overproduction and currency devaluation in key markets, alongside weak enforcement of quality regulations that affected market confidence. The state-owned Kenya Tea Development Agency (KTDA) remained a dominant influence throughout this period. The market then rebounded sharply in 2020, with volume leaping to 2 485 thousand tons.

After the 2020 peak, market volume corrected to 1 883 thousand tons in 2021 and stabilized near 1 871 thousand tons in 2022. Growth resumed in 2023, reaching 2 025 thousand tons. This recovery was primarily fueled by a government fertilizer subsidy program which reduced production costs and boosted yields, supported by favourable weather conditions that increased output.

In 2024, the government continued its support policies, including the fertilizer subsidy and the licensing of additional processing factories to reduce post-harvest losses. Efforts to expand into new export markets, such as Chad and South Sudan, also characterized the year's developments.

Production tea in Kenya

In kind, 2017-2020, K t

From 2017 to 2020, Kenya maintained its position as the world's third-largest tea producer by volume.

Top producers of tea, 2017-2020

World map of production of tea, 2017-2020

In 2020, Kenya produced 3 050 K t of tea, marking a significant 52.9% increase compared to 2019. Over the period from 2017 to 2020, production grew by 59.5%, which translates to an annualized growth rate of 16.8%. The most notable decline occurred in 2019, with a drop of 6.9%.

Annual dynamics of production in Kenya in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, Kenya's tea output was valued at 6 486 M $ US, showing a sharp year-over-year gain of 39.0%. Between 2017 and 2020, production value increased by 11.2%, corresponding to an annualized rate of 3.6%. The lowest value was recorded in 2019 at 4 667 M $ US, which also saw the largest decline of 20.5%.

Annual dynamics of production in Kenya in value, 2017-2020, M $ US

Exports tea from Kenya

Exports in kind, K t

In 2020, Kenya exported 575.5 K t of tea, representing a substantial 20.9% improvement from the previous year. From 2017 to 2020, exports rose by 23.2%, equating to an annualized growth rate of 7.2%. The most significant decline was in 2019, with a decrease of 4.9%.

Annual dynamics of product's exports from Kenya in kind, 2017-2020, K t

Between 2017 and 2020, Pakistan, Egypt, and the United Kingdom were the top contributors to Kenya's tea exports in volume terms. Pakistan accounted for 38.4% of exports, Egypt for 13.7%, and the United Kingdom for 11.3%, together making up 63.3% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Kenya in kind, 2017-2020

Exports in value, M $ US

Following a two-year decline, Kenya's tea exports in value terms rebounded in 2020, totaling 1 224 M $ US, a modest 9.9% advance from 2019. However, over the 2017-2020 period, exports decreased by 14.1%, with an annualized decline of 4.9%. The lowest value was recorded in 2019 at 1 114 M $ US, which also experienced the largest drop of 18.8%.

Annual dynamics of product's exports from Kenya in value, 2017-2020, M $ US

From 2017 to 2020, Pakistan, Egypt, and the United Kingdom formed the core of Kenya's tea exports in value terms. Pakistan contributed 40.5% of export value, Egypt 12.8%, and the United Kingdom 10.3%, collectively accounting for 63.7% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Kenya in value, 2017-2020

Imports tea to Kenya

Imports in kind, K t

In 2020, Kenya's tea imports reached 10.2 K t, up by 16.1% compared to 2019. Over the 2017-2020 period, imports increased by 18.9%, with a compound annual growth rate (CAGR) of 5.9%. The highest volume was recorded in 2018 at 10.8 K t, which also saw the largest increase of 25.9%. In contrast, 2019 experienced the most significant decline of 18.6%.

Annual dynamics of product's imports to Kenya in kind, 2017-2020, K t

Throughout 2017-2020, Uganda, Rwanda, and Tanzania were the key partners for Kenya's tea imports in volume terms. Uganda accounted for 62.9% of imports, Rwanda for 11.4%, and Tanzania for 9.8%, together representing 84.1% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Kenya in kind, 2017-2020

Imports in value, M $ US

In 2020, Kenya's tea imports amounted to 15 M $ US, reflecting a sharp 27.5% increase from the prior year. Over the 2017-2020 period, imports grew by 5.1%, with a CAGR of 1.7%. The lowest value was in 2019 at 12 M $ US, which also had the largest decline of 35.2%, while the highest value was recorded in 2018 at 18 M $ US.

Annual dynamics of product's imports to Kenya in value, 2017-2020, M $ US

From 2017 to 2020, Uganda, Rwanda, and India consistently led Kenya's tea imports in value terms. Uganda contributed 50.5% of import value, Rwanda 22.5%, and India 9.1%, jointly accounting for 82.1% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Kenya in value, 2017-2020