Nairobi, Friday, April 18, 2025
Kenya is making renewed efforts to unlock the Iranian market for its tea exports, signaling a strategic push to deepen trade ties with the Middle East and Central Asia. On Thursday, Cabinet Secretary for Agriculture, Mutahi Kagwe, led high-level discussions in Nairobi with a delegation of Iranian business leaders, focused on lifting a current ban on Kenyan tea exports to Iran.
The meeting, held in Nairobi, is part of a broader diplomatic and economic strategy aimed at revitalizing Kenya’s tea sector by identifying and securing new export destinations.
“Reopening access to Iran’s robust market could be a game changer for tea farmers and the entire tea value chain,” CS Kagwe said during a press briefing following the meeting. “Kenya is committed to strengthening bilateral trade ties and ensuring our high-quality tea reaches global markets.”
Kenya remains the world’s leading exporter of black tea, with the commodity serving as one of the country’s top foreign exchange earners. The tea industry supports more than 600,000 smallholder farmers, many of whom are affiliated with the Kenya Tea Development Agency (KTDA). The KTDA Chairman, Chege Kirundi, and Chief Executive Officer, Wilson Muthaura, were part of the Kenyan delegation at the talks, underscoring the significance of the meeting for stakeholders across the tea value chain.
Also present was Kenya’s Ambassador to the United Arab Emirates, Kenneth Milimo Nganga, reflecting a broader regional focus on building trade partnerships across the Gulf and Central Asia.
According to the United Nations COMTRADE database, Kenya exported goods worth USD 46.03 million to Iran in 2023, while importing goods valued at USD 28.45 million from the same country. Although tea was not among the top exports to Iran in recent years, due in part to trade restrictions, stakeholders believe that lifting the ban could dramatically shift trade volumes in favor of Kenya’s agriculture sector.
This renewed focus on Iran follows a series of high-level engagements between the two nations, most notably the official visit by Iranian President Ebrahim Raisi to Nairobi in July 2023. During the visit, President Raisi was received by President William Ruto, and the two heads of state witnessed the signing of multiple Memoranda of Understanding (MoUs) covering a wide range of sectors—including agriculture, livestock, ICT, fisheries, housing, and urban development.
“The two countries are strategically located to be each other’s key points of entry into their respective regions,” President Ruto stated at the time, expressing confidence in the long-term benefits of increased bilateral cooperation.
For Kenyan tea exporters, Iran represents a largely untapped market with immense potential. With a population of over 88 million and a deep-rooted culture of tea consumption, Iran is considered one of the largest tea-drinking nations in the world. The potential for growth is significant, especially for premium black tea varieties, which Kenya produces in abundance.
CS Kagwe noted that while the talks were primarily focused on lifting the tea export ban, the discussions also opened doors for broader collaboration in agriculture and agro-processing.
“This is not just about Iran,” Kagwe emphasized. “It is about positioning Kenyan tea competitively across a wider economic region. We’re looking at long-term trade partnerships that can deliver lasting impact to our farmers and our economy.”
The Ministry of Agriculture confirmed that technical working groups from both countries will continue engagement in the coming weeks to finalize modalities for the resumption of tea exports. This includes harmonizing standards, addressing regulatory concerns, and formalizing logistics arrangements.
Industry experts say the timing could not be more critical. The global tea market has been facing challenges related to fluctuating demand, changing consumer preferences, and geopolitical tensions. By diversifying its export destinations, Kenya aims to mitigate these risks while boosting revenues for its farmers.
“Access to new and stable markets is key to ensuring sustainability in the tea sector,” said Wilson Muthaura, CEO of KTDA. “We welcome these efforts and are ready to support the implementation of new trade pathways.”
If successful, the talks could not only reignite tea trade with Iran but also pave the way for stronger trade links between Kenya and other countries in the Middle East and Central Asia regions that have increasingly become important partners for Kenya’s economic growth ambitions
_Omandi Michira.
