The Kenya Tea Development Authority KTDA has raised alarm over a deepening crisis in the country’s tea sector, citing rising fuel prices and ongoing conflict in the Middle East as key threats to production, exports and farmer earnings.
Kenya’s tea industry faces mounting pressure as rising fuel costs and Middle East conflict disrupt exports, delay shipments, and threaten farmer earnings across key growing regions.
The agency says tea worth more than KSh 3 billion remains stuck in warehouses due to shipping disruptions linked to heightened tensions involving Iran and its regional adversaries. The delays are already straining cash flow across the value chain, with fears that the situation could deteriorate further if transport challenges persist.
KTDA national chairman Enos Njeru warned that smallholder farmers, who form the backbone of the sector, are likely to bear the brunt of the crisis. He said bonus payments expected in the coming months could drop by as much as KSh 10 per kilogram due to shrinking margins and increased operational costs.
“Currently we are holding tea worth over KSh 3 billion in our warehouses due to lack of shipping transport and we fear things could get worse in the coming days,” Njeru said during a briefing in Naivasha.
Export bottlenecks and rising costs hit farmers
The situation has been compounded by the withdrawal of major shipping lines from key routes in the Middle East, a critical corridor for Kenya’s tea exports. Pakistan, one of the country’s largest buyers, has been particularly affected by the disruption.
Exporters are also grappling with new surcharges imposed by shipping companies aimed at mitigating risks associated with the volatile security environment. These additional costs are being passed down the supply chain, squeezing already thin profit margins.
At the same time, recent increases in domestic fuel prices have driven up the cost of production and transportation. From farm inputs to factory operations and logistics, energy costs now account for a significantly larger share of expenses.
Njeru warned that without government intervention, the combined impact of high fuel prices and export bottlenecks could erode gains made in the sector over decades.
“Tea is one of the sectors that is highly taxed despite earning billions in foreign exchange,” he said. “We are asking the government to review some of the levies and provide relief to sustain farmers.”
Industry stakeholders have called for targeted subsidies and tax adjustments to cushion farmers and maintain Kenya’s competitiveness in the global market.
KTDA vice-chairman Simon Musonik added that the crisis extends beyond fuel and logistics, pointing to rising labor costs and expensive farm inputs such as fertilizer.
“As we grapple with the high cost of labor, we have been hit by shipping and fuel crises and we are calling on the government to implement measures that will cushion farmers during this difficult period,” he said.
The tea sector supports over 800,000 families and remains one of Kenya’s leading foreign exchange earners. Any sustained disruption could have far-reaching economic consequences, particularly in rural areas heavily dependent on tea farming.
Analysts warn that unless global shipping stabilizes and domestic cost pressures ease, the sector could face prolonged instability. For now, industry players are bracing for lower earnings and a challenging season ahead.
