Kenyan Tea Industry Performance Report:
April – December 2025
Strategic Intelligence on Production, Logistics, and Value-Addition
For the international tea trade, 2025 was a year defined by changing weather patterns and new shipping realities. This report provides the data-backed facts that professional buyers need to secure their 2026 supply chains. From production shifts to new tax savings, we break down exactly how the Kenyan tea market performed in the final nine months of 2025.
1. Tea Production and Grade Availability
The availability of specific tea grades changed throughout 2025 due to weather conditions. While total production was slightly lower than 2024, the market remained stable for high-volume buyers.
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Main Grade Performance: The dry months of July and August caused a temporary drop in the volume of BP1 (Broken Pekoe 1). However, the market saw a strong recovery in October and November, with PF1 (Pekoe Fannings 1) remaining the most available and high-demand grade for blenders in Pakistan and Egypt.
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Independent Factory Growth: While large-scale estates faced weather challenges, independent and private tea factories increased their output by 10–14% during the middle of the year. For buyers, these factories provided a reliable source of tea when other supplies were tight.
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Specialty and Orthodox Tea: In September 2025, Kenya launched a dedicated Specialty Tea Auction. This has made it much easier for buyers in the UAE and CIS regions to buy high-quality Orthodox and Purple teas without competing with bulk buyers.
2. Logistics: Shipping Routes and Delivery Times
Shipping was the biggest challenge for the tea trade in 2025. Global events forced a change in how tea moves from the Port of Mombasa to the rest of the world.
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The New Shipping Route: Most ships traveling to Europe and North Africa now go around the Cape of Good Hope to avoid delays and risks in the Red Sea. This has added 10 to 14 days to total travel time. Buyers are now placing orders earlier to ensure their warehouses do not run empty.
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Strategic Transit Hubs: Oman and the UAE have become essential for global tea distribution. Many buyers now ship large volumes to these hubs first, then move smaller amounts into the Middle East and Central Asia as needed. This helps keep local supply steady and reduces the risk of long-distance shipping delays.
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Freshness and Speed: Despite shipping delays, the new Digital Trading System in Mombasa has reduced the time it takes to move tea from the factory to the ship. This ensures that the tea arriving at your port is as fresh as possible.
Policy Changes: Lowering the Cost of Business and Protecting the Brand
2025 brought significant changes to tea regulations in Kenya, focusing on making the product more affordable for international buyers.
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Suspension of Certification Fees: In May 2025, the requirement for local factories to have Rainforest Alliance (RA) certification was suspended. This move removed an extra cost for the factories, helping to keep the base price of Kenyan tea competitive for buyers who do not require specific Western labels.
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Geographical Indication (GI) Launch: In late 2025, Kenya officially moved toward Geographical Indication protection for major tea regions, including Murang’a and the high-altitude highlands. Much like Champagne or Darjeeling, this legally protects the "Kenya Tea" identity. For the buyer, this ensures that the specific technical profile and liquor quality of tea from these volcanic soils cannot be imitated—providing a high-value "origin brand" for your premium retail lines.
This video outlines the collaborative efforts to secure this certification and explains how it preserves the authenticity of high-altitude origins like Murang'a.
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Tax Savings on Packaging: The Kenyan government has removed the VAT (tax) on all packaging materials used for export tea. This means it is now much cheaper to have your tea packed in Kenya into tea bags or retail packets than it is to pack it in your home country.*
*Important Market Note:While the removal of VAT offers a clear financial advantage, it is important for international partners to note that final production costs are also influenced by variable factors. These include fluctuating energy prices (fuel and electricity), seasonal labor rates, and factory-specific overheads. As exporters, we use our discretion to navigate these global market movements, ensuring we provide the most competitive rates possible while maintaining the highest standard of tea processing.
3. Global Demand: Where the Tea is Going
Kenyan tea remains the world's favorite for blending and high-volume sales. In 2025, it reached 62 countries.
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Pakistan and Egypt: These remain the biggest buyers, taking almost 50% of all exports.
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The Middle East & CIS: Countries like Iraq, Jordan, Kazakhstan, and Tajikistan saw steady growth. These markets prefer the strong taste and bright color of Kenyan tea.
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Africa: New trade agreements have made it easier to sell tea to Nigeria and Ghana, creating new opportunities for high-volume traders.
4. Strategic Performance Table: 2025 Trade Realities
Market Factor Apr – Sep 2025 Oct – Dec 2025 Impact on 2026 Business
Tea Availability Lower volumes Strong recovery; High stock levels in Q1 2026 means
due to dry weather 88% of tea offered was sold buyers can plan for large orders
Shipping Costs Higher prices due Costs stabilised as new Budget Planning: Shipping prices are now
to longer sea routes routes became standard predictable, allowing for better calculations
Overall Trade Sudan market Iran & Central Asian markets. Market Growth: The return of major buyers for
remained difficult saw increased buying high-end tea will keep demand strong in 2026
Government Certification fees New tax-free packaging Higher Margins: Direct buyers can save costs
Policy removed for factories. implemented by using Kenyan packaging services.*
Your Strategic Partnership for 2026
The 2025 data confirms that a successful tea enterprise is defined by the management of the risks and costs surrounding the product.
As an established Kenyan exporter, our parent company understands the specific pressures international buyers face from the volatility of global shipping timelines to the requirement for improved retail margins.
We prioritise your operational challenges alongside the supply of quality tea. Whether your focus is stabilising a disrupted supply chain, reducing packaging overheads through our tax-exempt facilities, or engineering a blend for a specific price point in your home market, our team is equipped to address those requirements.
Our objective is to provide the peace of mind that comes from reliable data and the increased profitability that follows smarter sourcing.