Kenya Courts Iran For Business Partnership After Tea Export Ban
Agriculture Cabinet Secretary Mutahi Kagwe met with Iranian business groups on Thursday, April 17, to discuss the next steps following the Middle Eastern country’s embargo on Kenyan tea exports.
The conference was called to discuss easing the restriction, which has hurt Kenya’s major export, black tea.
“Reopening access to Iran’s robust market could be a game changer for tea farmers and the entire tea value chain,” a statement by Kagwe read.
They also discussed expanding the trading network outside Iran to include the greater Middle Eastern and Central Asian regions.
UNLOCKING TEA TRADE BAN.
— Ministry of Agriculture & Livestock Development (@kilimoKE) April 17, 2025
Kenya, as the world’s leading exporter of black tea, is committed to strengthening bilateral trade ties and ensuring our high-quality tea reaches global markets. #BETAKilimo#FoodSecurity#TeaValueChain#IranKenyaRelations pic.twitter.com/QwizRJBAju
Kenneth Milimo Nganga, Kenya’s Ambassador to the UAE; Chege Kirundi, Chairman of the Kenya Tea Development Agency (KTDA); and Wilson Muthaura, CEO, accompanied the CS.
In 2023, Kenyan tea was engaged in a Ksh542 billion fraud scandal in Iran, as President Ebrahim Raisi distanced his administration from the situation.
According to an Iran International investigation from December 2023, one tea company was at the heart of the entire controversy involving prominent current and past government officials.
This includes ministers of agriculture and industry, governors of Iran’s Central Bank, and chiefs of the Iranian Customs Administration.
According to the research, until 2020, the annual budget for importing tea was over $300 million (Ksh39 billion at current currency rates).
However, the budget was increased to almost $900 million (Ksh116 billion at current currency rates) without adequate rationale.
The incident shook bilateral commercial relations, and the following ban had a significant impact on Kenya’s economy.
Just a few months ago, President William Ruto reported that tea shipments to Iran had surged eightfold in three months.
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On July 12, 2023, during a meeting with President Raisi, President Ruto stated that $28.4 million (Ksh3.7 billion at current exchange rates) in tea was exported to Iran in just the first quarter of the year.
Key points from President William Ruto's press statement following a bilateral meeting with President Ebrahim Raisi of Iran at State House:
— Sam Terriz (@Terriz_Sam) July 12, 2023
1. President Ruto expressed gratitude for President Raisi's visit to Kenya, which demonstrates the strong ties between the two countries.… pic.twitter.com/8HOsSlvQIH
“I sought the President’s commitment to exporting more tea, meat and other agricultural products to Iran, and through Iran to the Central Asian countries,” he stated.
“Trade volume between our countries has been on a steady upward trajectory.”
He continued: “Kenya exported tea worth $28.4 million (Ksh3.7 billion in current exchange rate) to Tehran in the first quarter of this year, which is an eight-fold increase.”
Kenya Courts Iran For Business Partnership After Tea Export Ban
