{"id":24058,"date":"2026-01-05T09:02:21","date_gmt":"2026-01-05T09:02:21","guid":{"rendered":"https:\/\/www.selinawamucii.com\/news\/?p=24058"},"modified":"2026-01-05T09:02:23","modified_gmt":"2026-01-05T09:02:23","slug":"tea-prices-in-kenya-find-parity-at-0-77-per-kg-by-2027","status":"publish","type":"post","link":"https:\/\/www.selinawamucii.com\/news\/2026\/01\/05\/tea-prices-in-kenya-find-parity-at-0-77-per-kg-by-2027\/","title":{"rendered":"Tea prices in Kenya find parity at $0.77 per kg by 2027"},"content":{"rendered":"\n

Targeting to unyoke smallholder farmers from perennial unfair bonuses, Kenya might double farm-level green tea prices<\/u><\/a> to 100 shillings ($0.77) a kg in 2027. <\/p>\n\n\n\n

Unveiling a seven-pillar strategy to improve the producer price, Agriculture Cabinet Secretary Mutahi Kagwe promised to equate producer prices irrespective of region.<\/p>\n\n\n\n

Among the seven pillars is a minimum farm-gate price and the establishment of a quality testing lab in the export gateway of Mombasa.<\/p>\n\n\n\n

According to Kagwe, the laboratory is currently undergoing equipping and will be ready to operate by June 2026. <\/p>\n\n\n\n

Quality remains one of the major focus to protect Kenya\u2019s prized tea in markets that also grow their own tea such as India <\/u><\/a>and Pakistan. The two south Asia nations mainly use the Mombasa Auction for their imports. <\/p>\n\n\n\n

Hence, Western Kenya tea belt will initiate a 24-month quality improvement program for transiting from medium quality to premium quality tea within half-a-decade.<\/p>\n\n\n\n

A governmental board will blind-taste teas from various factories, whereby 15  factories with substandard tea will join the quality enhancement program.<\/p>\n\n\n\n

The Tea Board of Kenya (TBK) will hence peg pricing to its sensory analysis on top of scientific lab assessment for pesticide content.<\/p>\n\n\n\n

Need for Parity  <\/strong><\/strong><\/h3>\n\n\n\n

Price reforms come in the heels of inquiry findings by the National Assembly Agriculture Committee that cartels manipulate rates by region.<\/p>\n\n\n\n

Producer associations often clash with brokers who take advantage of ever-changing international prices to exploit farmers. <\/p>\n\n\n\n

Indeed, farmers from the southwestern Kenya areas of Kisii, Nyamira and East Rift Valley precipitated the price equalization agenda by protesting unfair tea bonuses.<\/p>\n\n\n\n

Growers of the premium traditional tea will access a 3.7-billion shilling<\/u><\/a> ($28.6 million) loan via the Kenya Development Corporation to raise standards.<\/p>\n\n\n\n

How well the oncoming reforms elevate the Kenya tea quality parameter depends much on the actualization of the price hike. This is because smallholder farmers grow over 66% of national tea. The stats below follow their plight via a price analysis.\u00a0<\/p>\n\n\n\n

Kenya Tea Export Prices <\/strong>Statistics <\/strong><\/strong><\/h2>\n\n\n\n

Tea is economically important in Kenya for it employs 13% of the population, earns\u00a026%<\/u><\/a>\u00a0of the foreign exchange and represents 4% of the GDP. At the farmer level, however, reforms are in need to raise income due to long-term price manipulation. The government promised to raise the farm-gate price from 50 shillings ($0.39) a kg to\u00a0100 shillings<\/u><\/a>\u00a0($0.77)\/kg starting 2027. \u00a0<\/p>\n\n\n\n

Kenya\u2019s tea sells at the international level via auctions. The following data interpretation from the Federal Reserve, St. Louis<\/u><\/a> gives a mid-year historical perspective on the global price:<\/p>\n\n\n\n

Year<\/strong>-to-Date<\/strong><\/td>International Price of Kenya Tea [$\/kg]<\/strong> <\/strong><\/td><\/tr>
June 2025<\/td>3.06<\/td><\/tr>
June 2021<\/td>2.28<\/td><\/tr>
June 2015<\/td>3.55<\/td><\/tr>
June 2007<\/td>2.02<\/td><\/tr>
June 1998<\/td>2.18<\/td><\/tr>
June 1995<\/td>1.45<\/td><\/tr>
June 1990<\/td>1.81<\/td><\/tr><\/tbody><\/table>
Fig:\u00a0mid-year highlights of Kenya tea prices internationally, 1990-2025<\/em><\/figcaption><\/figure>\n\n\n\n

How did Kenya Tea auction prices perform over 2025?<\/strong><\/strong><\/p>\n\n\n\n

2025 started strongly in pricing before experiencing several rise and fall patterns, per the below\u00a0YCharts<\/u><\/a>-interpreted data: \u00a0<\/p>\n\n\n\n

Month [2025]<\/strong><\/td>Auction Price<\/strong> <\/strong><\/td><\/tr>
September<\/td>$3.24<\/td><\/tr>
August<\/td>$3.02<\/td><\/tr>
July<\/td>$3.04<\/td><\/tr>
June<\/td>$3.06<\/td><\/tr>
May<\/td>$3.19<\/td><\/tr>
April<\/td>$3.16<\/td><\/tr>
March<\/td>$3.21<\/td><\/tr>
February<\/td>$3.33<\/td><\/tr>
January<\/td>$3.43<\/td><\/tr><\/tbody><\/table>
Fig:\u00a0Tea Auction price in kenya, Jan-Sep 2025<\/em><\/figcaption><\/figure>\n\n\n\n

How big is tea production in Kenya?<\/strong><\/strong><\/p>\n\n\n\n

Despite acreage shrinking from\u00a0269,400 hectares\u00a0(ha) in 2020 to 227,800 ha in 2023, production levelled off somewhat in the same period. According to data from the\u00a0FAOSTAT<\/u><\/a>,\u00a0Kenya produced 3.05 million tonnes (t) of tea leaves in 2020. This reduced to 2.43 million t in 2021, then to 2.418 million t in 2022, before rising to 2.5778 million t in 2023. \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Targeting to unyoke smallholder farmers from perennial unfair bonuses, Kenya might double farm-level green tea prices to 100 shillings ($0.77) a kg in 2027.  Unveiling a seven-pillar strategy to improve the producer price, Agriculture Cabinet Secretary Mutahi Kagwe promised to equate producer prices irrespective of region. Among the seven pillars is a minimum farm-gate price and the establishment of…<\/p>\n","protected":false},"author":3,"featured_media":23124,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"yoast_head":"\nTea prices in Kenya find parity at $0.77 per kg by 2027 - Selina Wamucii | Food & Agriculture News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.selinawamucii.com\/news\/2026\/01\/05\/tea-prices-in-kenya-find-parity-at-0-77-per-kg-by-2027\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tea prices in Kenya find parity at $0.77 per kg by 2027 - Selina Wamucii | Food & Agriculture News\" \/>\n<meta property=\"og:description\" content=\"Targeting to unyoke smallholder farmers from perennial unfair bonuses, Kenya might double farm-level green tea prices to 100 shillings ($0.77) a kg in 2027.  Unveiling a seven-pillar strategy to improve the producer price, Agriculture Cabinet Secretary Mutahi Kagwe promised to equate producer prices irrespective of region. 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