Current Tea Farming in Kenya and Global Market Overview
Tea Farming in Kenya is a cornerstone of the economy, with the country standing as one of the world’s leading producers and exporters of black tea. The industry is predominantly driven by small-scale farmers, who contribute significantly to both local livelihoods and the global tea supply.
Tea Farming in Kenya
In Kenya, tea cultivation thrives in the highland regions, benefiting from tropical, volcanic red soils and well-distributed rainfall ranging between 1,200 mm to 1,400 mm annually. These conditions, coupled with long sunny days, create an ideal environment for tea growth. The Kenya Tea Development Agency (KTDA) plays a pivotal role in managing small-scale tea farming. As of recent reports, the KTDA oversees 66 tea factories, serving over 500,000 small-scale farmers who collectively cultivate more than 100,000 hectares of tea. These smallholder farmers are responsible for producing over 60% of Kenya’s tea, with the remainder coming from large-scale producers. Labor in tea-growing regions is primarily manual, although multinational companies have begun incorporating tea plucking machines into their operations.
Despite the industry’s success, Kenyan tea farmers face several challenges. The supply chain involves multiple intermediaries, including 11 tea brokerage firms, which can diminish the income received by growers. There have been discussions about streamlining this process to ensure farmers receive fair compensation for their produce. Additionally, competition from other beverages, such as soft drinks and mineral water, poses a threat to tea consumption. Tax reductions on these competing beverages have made them more affordable, potentially impacting local tea demand. To counter this, there have been suggestions to reduce taxes on local tea to boost domestic consumption, which could, in turn, positively influence global market prices.
Global Tea Market Overview
The global tea market has been steadily expanding, fueled by growing consumer awareness of health benefits and an increasing preference for premium and specialty teas. In 2024, the market was valued at approximately USD 17.42 billion, with projections indicating a 6.0% compound annual growth rate (CAGR) from 2025 to 2030.
This growth is attributed to consumers’ awareness of tea’s health benefits, such as its anti-inflammatory properties and its role in promoting relaxation.
Revenue in the tea market is substantial, with projections indicating that in 2025, at-home consumption will generate around USD 144.70 billion, while out-of-home consumption is expected to contribute approximately USD 149.80 billion, totaling USD 294.40 billion. China is anticipated to lead in revenue generation, with an estimated USD 51 billion in 2025. The market is expected to grow annually by 5.56%
Flavor preferences in the tea market are also evolving, with ginger, lemon, chamomile, mint, and orange emerging as the top five flavors globally. Regional variations exist, with Latin American consumers showing a preference for gluten-free options and teas that offer energy or weight management benefits. In contrast, consumers in the Middle East and Africa are increasingly interested in teas that support digestive health, cater to diabetic needs, or align with vegan diets.
Challenges and Trends
The tea industry faces challenges related to climate change and geopolitical factors. Extreme weather events, such as droughts and floods, have adversely affected tea production in key regions, including Kenya. These climatic changes have led to increased production costs and, consequently, higher prices for consumers. For instance, Australia has experienced a 10.5% rise in tea import prices due to climate-induced disruptions in supply chains.
In response to these challenges, there is a growing emphasis on sustainable and regenerative farming practices. Initiatives like the Mount Kenya Sustainable Landscape and Livelihoods (MSuLLi) program by the Rainforest Alliance focus on promoting agroecological methods that enhance soil health and biodiversity. These practices aim to build resilient farming communities capable of withstanding environmental and economic fluctuations.
In summary, tea farming in Kenya remains a vital economic activity, deeply intertwined with the livelihoods of small-scale farmers. The global tea market is on an upward trajectory, fueled by health-conscious consumers and a demand for diverse flavors. However, the industry must navigate challenges posed by climate change and market dynamics to sustain its growth and support the communities that depend on it.
Kenya remains a global leader in black tea exports with strong international demand, but climate change, price volatility, and competition pose challenges. To stay competitive, Kenya is diversifying its products, entering new markets, and focusing on value addition.
Lesama Limited is encouraging Kenyan farmers, especially those in prime tea-producing counties, to embrace tea farming. Counties such as Murang’a, Kiambu, Kericho, Nandi, Bomet, Nyeri, Meru, and regions in Western Kenya offer fertile soils and favorable climates ideal for tea cultivation. Engaging in tea farming not only promises substantial economic returns but also contributes to sustainable agricultural practices. Lesama Limited is committed to supporting farmers through identifying parcels of land for sale and leasing in the tea growing counties. Through our Eco Agriculture Website, farmers will also have access to valuable resources, including best farming practices, pest and disease management strategies. Our platform aims to empower farmers with knowledge and connections to help them maximize their yields and profits.
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