Kenya’s Tea Export Earnings Rise to KSh 186.9 Billion: Kazakhstan and Oman Emerge as Strategic Growth Markets

The Tea Board of Kenya (TBK) has reported that export volumes for 2025 rose by nearly 10% to 652.8 million kilograms, up from 594.5 million kilograms in 2024. This increase was partly driven by the offloading of unsold stocks from previous years following the government’s decision to scrap the mandatory price floor at the Mombasa auction. The policy shift improved the absorption rate to 73%, significantly clearing backlogs that had previously suppressed market liquidity. While Pakistan remains Kenya's top buyer (accounting for 36% of total volume), the year was defined by explosive growth in non-traditional markets. Kazakhstan recorded a 186% increase in imports (adding 15.92 million kgs), while Oman saw a staggering 320% rise (adding 13.53 million kgs). These gains were critical as the industry navigated a lower average export price of $2.21 per kg (down from $2.27 in 2024) and a stronger mean exchange rate of 129.50, which reduced the Shilling-equivalent earnings for exporters. Additionally, the sector began addressing the "value-addition" gap, with processed tea exports representing 4% of total volumes, supported by the recent removal of VAT on value-added tea inputs. Why this matters For the national economy, the 2025 performance proves that Kenya’s tea industry can remain a top forex earner even during periods of global price volatility. The successful diversification into Central Asia and the Middle East reduces the "concentration risk" associated with over-reliance on a few traditional markets. For the broader agricultural sector, the clearing of auction backlogs restores cash flow to smallholder farmers, ensuring that the 2% rise in earnings translates into actual payments at the factory level. Opportunity sector Value-Added Processing: Significant opportunities for investment in local packaging and branding plants to move beyond bulk exports, supported by new VAT incentives. Specialized Logistics (Alternative Routes): As Red Sea disruptions persist, there is a rising demand for logistics firms that can optimize southern African shipping routes to maintain delivery timelines. Regional Warehousing: Openings for high-capacity, climate-controlled storage in Mombasa to manage "carry-over" stocks and maintain quality during shipping delays. Emerging Market Trade Consulting: Increased need for market entry specialists to help Kenyan firms navigate the regulatory and distribution landscapes in Kazakhstan, Oman, and Jordan. Moto Seen Africa — Africa’s View, Seen Clearly. #KenyaTea #ExportGrowth #KazakhstanOman #Agribusiness #EconomicResilience #MombasaAuction #MotoSeenAfrica #Vision100