Kenya’s tea industry generated KES55 billion (about US$424 million) in export earnings during the first half of 2026, reinforcing the country’s position as the largest supplier at the Mombasa Tea Auction even as debate continues over the impact of a newly introduced export levy.
Industry figures show Kenyan producers supplied about 186.2 million kilogrammes of tea to the auction between January and June, significantly outperforming neighbouring exporters including Uganda, Rwanda and Tanzania. The Mombasa Tea Auction remains the principal marketplace for tea produced across East and Central Africa, with Kenyan tea accounting for the largest share of volumes traded.
The average selling price for Kenyan tea during the first 24 auction sales of 2026 stood at approximately US$2.28 per kilogramme. Brandspur Brand News reports that sector regulators attribute the industry’s resilience to consistent tea quality, favourable market demand and increased production following strong rainfall recorded between March and April.
The Tea (Levy) Regulations, 2026, which came into effect on May 1, introduced a 0.8 per cent levy on the customs or auction value of exported tea. The government says proceeds from the levy will support tea marketing, research, value addition initiatives and infrastructure development across the sector.
However, exporters, factory managers and many tea farmers have argued that the additional charge raises operating costs and could weaken Kenya’s competitiveness in international markets. Some industry players believe buyers have increasingly shown interest in teas from neighbouring countries, particularly Rwanda, which recorded higher average prices despite exporting much smaller volumes.
Rwanda earned about KES5.1 billion from tea exports during the same period, with its tea attracting an average price of nearly US$3 per kilogramme. Even so, Kenya’s tea regulator maintains that Rwanda’s comparatively limited production capacity makes it unlikely to challenge Kenya’s leadership in regional tea exports.
Latest auction data also indicates stronger market absorption for Kenyan tea, with factories managed by the Kenya Tea Development Agency recording a 74 per cent absorption rate during Sale 24, an improvement from 60 per cent achieved during the corresponding sale in 2025, highlighting sustained international demand despite ongoing concerns over the export levy.
