Kenya is staring at a loss of more than $80 million in revenue this year as a result of the tea export ban to Sudan and Iran, after the government failed to resolve the diplomatic standoff to revive the two key markets.

A joint Kenya-Iran committee set up to resolve trade barriers and oversee the resumption of tea exports to Tehran has failed to deliver, and its mandate has expired.

This means that the Mombasa Tea Auction will continue to record low volumes.

East Africa Tea Trade Association managing director George Omuga, who is also a member of the Kenya-Iran joint committee, said although significant steps are being made to resolve the dispute with Iran, the economic impact will trickle down to the farmers.“The talks are going well, though past the (mid-October) deadline, but our concern is the volumes which have reduced at the Mombasa Tea Auction, considering that Iran was our key market, with exports reaching $33 million in 2024,” Mr Omuga said.

He hoped that “something would be done in the coming days” about the Sudan market.

Iran banned the export of tea following a scandal involving substandard leaves from Kenya. This led to the formation of a joint committee in August 2025, tasked with establishing a framework to improve quality and resume trade.

The decision to form a joint committee was made at the 7th Session of the Kenya-Iran Joint Commission for Cooperation (JCC) in Nairobi, co-chaired by Kenyan Prime Cabinet Secretary Musalia Mudavadi and Iran’s Minister of Agricultural Jihad, Gholamreza Nouri Ghezalcheh.

A Kenyan firm, Cup of Joe Limited, was found to have been importing low-quality tea, blending it and exporting the product to Iran as premium Kenyan tea.

This violated trade ethics and compromised the credibility of Kenya’s globally respected tea brand. Consequently, the Tea Board of Kenya deregistered the company, which now faces prosecution.

Tehran imports more than 100 million kilogrammes of tea, with Kenya supplying about 20 million kilos annually.

In 2024, Kenya exported 13 million kilos of tea to Iran, valued at $33 million, showing significant growth before the ban.

Delayed talksBut, as Kenya-Iran talks continue, tea dealers are concerned about Nairobi’s delay in initiating talks to resolve the diplomatic tensions with Sudan, which would allow them to resume exporting to the major tea market.

Tea stakeholders have warned of losses of up to $48 million this year as a result of the government's laxity in reviving the Sudan market, saying the same level of effort should be devoted to resolving the tiff with Port Sudan, as ignoring that market has a huge impact on small tea farmers.

Tea exports to Sudan were impacted by a Sudanese ban on all imports from Kenya in response to diplomatic tensions after Kenya was accused of hosting the rebel Rapid Support Forces leaders to launch a parallel government in Nairobi in March, among other things.

Mr Kimanga said that apart from seeking other markets, the government should engage Sudanese authorities to safeguard the livelihoods of thousands of farmers and traders who depend on tea exports.“With the ban being extended after the window to clear tea on the supply chain, Kenyan tea farmers reel as the Sudan ban threatens bonuses and livelihoods since tea traders and merchants still have valid contracts,” Mr Kimanga said.

Kenya's tea export ban to Sudan has created challenges for tea exporters due to contractual obligations and the specific tea grades that are difficult to sell in other markets.

One percent growthSudan has been engulfed in a civil war since April 2023, primarily between the Sudanese Armed Forces (SAF) and the paramilitary RSF.

In February, the RSF and its allied political and armed groups signed a founding charter in Kenya, expressing the intention to form a parallel government.

Sudan's military government banned Kenyan imports, saying the move was to preserve the country's sovereignty and "protect its national security."Apart from tea, Kenya also exports food items and pharmaceutical products to Sudan.

The Mombasa Tea Auction has suffered due to conflict in several of its key markets, resulting in revenues increasing by just one percent in 2024 compared to 2023.

Despite these challenges, Kenya earned $1.65 billion from tea exports, representing an 18 percent increase from the marketed value of $1.39 billion in 2023.

In 2024, Kenya tea was shipped to 96 export destinations compared to 92 in 2023, with Pakistan maintaining its position as the leading export destination, importing 206.27 million kilos, which accounted for 34.7 percent of the total export volume.

Other key export destinations for Kenyan tea were Egypt, with an import volume of 86.90 million kilos, UK (57.44 million kilos), UAE (30.50 million kilos), Russia, (28.46 million kilos), India (17.13 million kilos) and Saudi Arabia (15.92 million kilos).

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