Kenya Eyes Return to Iranian Tea Market, Explores Wider Middle East Trade Ties
Nairobi, The Gulf Observer: Kenya, the world’s top exporter of black tea, is ramping up efforts to revive and expand its presence in the Iranian market, with renewed diplomatic and trade engagements aimed at lifting the current ban on Kenyan tea exports to Iran.
On Thursday, Agriculture Cabinet Secretary Mutahi Kagwe held high-level talks with Iranian business groups, where the reopening of Iran’s market and the potential for deeper trade ties across the Middle East and Central Asia were central topics.
“Reopening access to Iran’s robust market could be a game changer for tea farmers and the entire tea value chain,” said CS Kagwe in a press statement.
Kagwe was joined by Ambassador Kenneth Milimo Nganga (Kenya’s envoy to the UAE), KTDA Chairman Chege Kirundi, and CEO Wilson Muthaura, reflecting the government’s whole-of-sector approach to boosting tea exports and diversifying trade.
Tea as a Strategic Export
Kenya’s premium black tea remains one of its top foreign exchange earners, and regaining access to Iran — a nation with a strong tea-drinking culture — would significantly benefit the over 600,000 smallholder tea farmers represented by the Kenya Tea Development Agency (KTDA).
Iran banned Kenyan tea exports over unresolved compliance and quality issues, but both sides are now working on a framework to resume trade under clearer protocols.
Trade Snapshot
According to UN COMTRADE data:
- In 2023, Kenya exported goods worth USD 46.03 million to Iran.
- Meanwhile, imports from Iran stood at USD 28.45 million, showing a trade surplus in Kenya’s favor.
Deepening Ties Since 2023
This initiative builds on momentum from Iranian President Ebrahim Raisi’s 2023 state visit to Nairobi, during which he and President William Ruto underscored their nations’ potential as “gateway economies” — Kenya into East Africa, and Iran into the Persian Gulf and Central Asia.
The two leaders witnessed the signing of a series of Memoranda of Understanding (MoUs) in sectors ranging from agriculture and fisheries to ICT, housing, and urban development, laying the groundwork for expanded bilateral cooperation.
Looking Ahead
The Agriculture CS expressed optimism that progress will be made in coming months to reopen Iranian markets and initiate new export routes and partnerships across the Gulf region — an effort aligned with Kenya’s broader strategy to diversify agricultural exports and enhance market access under Vision 2030.
Tea stakeholders are hopeful that this renewed engagement will not only revive dormant trade channels but also create sustainable income streams for Kenyan growers, bolster rural economies, and increase foreign exchange earnings.
