The Kenya Tea Development Agency has warned that the recent increase in fuel prices is expected to negatively impact tea farmers’ earnings this year, as rising production and export costs continue to strain the sector.
Speaking in Naivasha on Wednesday, April 15, during a meeting with chairpersons of KTDA-managed factories, KTDA National Chairman Enos Njeru said the industry is already facing pressure from global disruptions, including the ongoing conflict in the Middle East.
According the Njeru, the conflict has disrupted key export routes, leading to shipping delays and increased freight and insurance costs.Â
“The recent increase in fuel prices is expected to negatively impact tea farmers’ earnings this year,” said Njeru.
KTDA Warns of Declining Tea Farmers’ Earnings Amid Rising Fuel Costs and Global Disruptions
He noted that the rise in fuel prices is also likely to push up the cost of fertilizer expected in June, as some components are oil-based and global shipping rates remain elevated.
On his part, KTDA Board Vice Chairman Samson Mosonik said labour remains the highest cost in tea production and stressed the need for efficient management to improve productivity and farmers’ earnings.
“Labour is the single largest cost in tea production, and there is a need for efficient management to improve productivity and enhance farmers’ earnings,” said Mosonik.
Njeru urged factory boards and management to implement austerity measures to reduce operational costs and mitigate the impact of rising fuel prices and global disruptions.
He also urged the government to consider reducing taxes on tea, noting that the crop remains among the most heavily taxed. He called for interventions to cushion farmers from the current economic pressures.
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EPRA Hikes Fuel Prices
This comes after the Energy and Petroleum Regulatory Authority (EPRA) announced a significant increase in fuel prices for the April–May pricing cycle, citing a surge in global petroleum costs and exchange rate pressures.
The cost of Super Petrol and Diesel rose sharply by Ksh 28.69 and Ksh 40.30 per litre, respectively, while kerosene prices remained unchanged.
EPRA attributed the increase to a spike in landed costs—the price at which fuel is imported into the country—driven by volatility in international markets and a weakening shilling.
However, in an addendum to its earlier pricing review released on April 14, EPRA announced a downward adjustment in fuel prices following a reduction in Value Added Tax (VAT).
The regulator said the revised prices follow a directive by the National Treasury to cut VAT on petroleum products from 13 percent to 8 percent under a legal notice dated April 15, 2026.
EPRA noted that the new adjustment will take effect from April 16 through May 14, 2026, replacing the prices announced on Tuesday, April 4.
“As a result, the pump price per litre in Nairobi for Super Petrol and Diesel has decreased by Ksh 9.37 and Ksh 10.21, respectively, while that of kerosene remains unchanged,” said Acting EPRA Director General Dr. Joseph Oketch in a statement.
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Kenya’s Tea Export Earnings
Tea is Kenya’s leading agricultural export and a cornerstone of many rural incomes.
Globally, Kenya is the world’s largest exporter of black CTC tea and consistently ranks among the top three tea exporters by volume. Its competitive advantage rests on scale, reliability, and access to a wide range of markets.
In November 2025, the country exported 52.38 million kilograms of tea, up nearly 12% from a year earlier.
Ten destinations account for 82.7% of Kenya’s monthly tea exports, and most of them are currently grappling with internal and external conflicts.
The largest buyer is Pakistan, which absorbed 21.14 million kilograms of tea in November, just over 40% of the total exports that month.
Behind it came Egypt (5.15 million kgs), the United Kingdom (5.14 million kgs), Russia (2.87 million kgs), and Kazakhstan (2.64 million kgs). The rest of the top ten now reads like a maritime risk assessment map: the United Arab Emirates (UAE), Yemen, India, Iran and Oman.
