Kenya Tea Industry Performance Report - 2024

During the year 2024, the total earnings from tea amounted to Kshs. 215.21 Billion, out of which Kshs. 181.69 Billion was earned from exports, Kshs. 18.00 Billion from local sales and Kshs. 15.52 Billion from committed stocks. This was an increase of 9% from the marketed value of Kshs. 196.97 Billion recorded in 2023.

From the total marketed value, the exports earnings recorded improved performance of 1% (Kshs. 1.12 Billion) to stand at Kshs. 181.69 Billion from Kshs. 180.57 Billion recorded in 2023. Higher export earnings were attributed to increased export volume by 14% (71.59 Million Kgs) from 522.92 Million Kgs recorded in 2023 to 594.50 Million Kgs. However, compared to the year 2023, the export prices and the exchange rate to the USD were less favourable to the earnings. The average export unit price was slightly lower in dollar terms at USD 2.27 per Kg compared to USD 2.47 in 2023 while the mean exchange rate of the Kenya Shillings to the USD was lower at 134.82 compared to 139.85.

During the year 2024, Kenya tea was shipped to ninety-six (96) export destinations compared ninety-two (92) in the year 2023. Pakistan maintained its position as the leading export destination for Kenya tea having imported 206.27 Million Kgs, which accounted for 34.7% of the total export volume. In terms of value, the consignment to Pakistan was worth Kshs. 70 Billion. Other key export destinations for Kenya tea were Egypt whose import volume was 86.90 Million Kgs worth Kshs. 23.96 Billion; UK (57.44 Million Kgs valued at Kshs. 16.99 Billion); UAE (30.50 Million Kgs valued at Kshs. 10.27 Billion); Russia (28.46 Million Kgs, Kshs. 7.43 Billion); India (17.13 Million Kgs, Kshs. 3.94 Billion); Saudi Arabia (15.92 Million Kgs, Kshs. 6.02 Billion); Yemen (14.13 Million Kgs, Kshs. 5.52 Billion); Iran (13 Million Kgs, Kshs. 4.26 Billion); and China (12.42 Million Kgs, Kshs. 2.73 Billion). The top ten export destinations, majority of which are traditional markets for Kenya tea accounted for 81% of Kenya tea export volume. Compared to the year 2023, more exports were recorded in traditional markets with Egypt recording the highest increase in export volume by 21.01 Million Kgs. India recorded the second highest increase by 11.86 Million Kgs followed by UK 11.29 Million Kgs; Russia (10.11 Million Kgs); Saudi Arabia (8.09 Million Kgs); China (7.79 Million Kgs); Chad (4.69 Million Kgs) and Poland (3.49 Million Kgs). Notably, Chad is significantly growing as an emerging market for direct imports from Kenya. Prior to the conflict in Sudan, Chad which is a land locked country, would get its import supplies including tea from Sudan. However, due to the blockage of trade routes from Sudan, Chad has now shifted to Nigeria and Cameroon as alternative import transhipment routes. Just like Chad, South Sudan is also rapidly growing as an emerging market for Kenya tea. Similarly, there were improved exports to other traditional and emerging markets such as Kazakhstan; Somali; Switzerland; Oman; Nigeria; Ukraine; Sri Lanka; USA; Germany; South Africa and Japan.

Due to market access challenges occasioned by internal conflict in the country, there was a dip in tea exports to Sudan of 12%. Tea exports to Pakistan also recorded a dip of 2% owing to the effects of the changes in the sales tax policy in the market, which was effected during the last quarter of the year.

During the year 2024, there were also market access challenges occasioned by disruptions along the Red Sea shipping route due to the attacks on vessels by Yemen Terrorist group. This has prompted several shipping lines to suspend their operations through the route and revert to using the Southern tip of Africa an alternative transhipment route, whose shipment duration is much longer and costs more from the Port of Mombasa.