State urged to unlock global tea markets - Business Daily

Kenya's tea industry, historically one of East Africa's most reliable foreign exchange earners, faces a critical juncture. While the sector generates approximately $1.5 billion annually and employs over 3 million people directly and indirectly, structural inefficiencies and policy constraints are preventing Kenyan producers from capturing premium segments of global tea markets—particularly in Europe, where specialty and sustainable tea commands 40% price premiums. Recent advocacy from industry stakeholders has intensified calls for government intervention to modernize the sector's infrastructure, regulatory framework, and market access mechanisms. These demands reflect growing frustration among producers who watch competitors from Vietnam, India, and Sri Lanka capture expanding European market share through strategic positioning and favorable trade conditions. Kenya produces approximately 500,000 tonnes of tea annually, making it the world's second-largest exporter by volume. However, the sector's export profile remains dominated by bulk commodity tea destined for blending markets in Europe and the Middle East. This low-margin positioning masks an untapped opportunity: the European specialty tea market, valued at €8.2 billion in 2023 and growing at 12% annually. Premium Kenyan teas—particularly those marketed for their unique terroir, sustainable farming practices, and health attributes—remain virtually absent from European specialty retailers and e-commerce platforms. The structural barriers are