Kenya’s efforts to move up the global tea value chain gained momentum this week after specialty tea producer Gatanga Industries signed a partnership agreement with French premium tea retailer Palais des Thés, in a deal aimed at expanding Kenyan specialty tea exports into higher-value international markets.
The agreement, announced during the Africa Forward Summit in Nairobi, brings together Gatanga Industries, Equity Group and the Paris-based tea company as Kenya seeks to diversify beyond bulk black tea exports that have historically dominated the country’s tea trade.
Under the partnership, Palais des Thés will source Kenyan specialty teas for distribution through its international retail network and consumer education platforms. The French company, founded in 1986, operates nearly 100 stores across Europe, including in France, Italy, Denmark, Norway and Belgium.
The companies did not disclose expected export volumes or financial terms of the agreement, but Kenyan industry stakeholders view the partnership as part of a broader strategy to secure more stable export markets and improve earnings for tea farmers by targeting premium consumer segments.
“For a long time, our farmers have been growing a unique crop without clear access to buyers who fully understand its value,”
Gatanga Industries Chairman Karanja Kinyanjui said during the signing ceremony. He added that the partnership could help stabilise prices and strengthen long-term income security for tea-growing communities.
The deal reflects a growing push within Kenya’s agricultural export sector to capture more value locally rather than relying primarily on commodity-based exports vulnerable to volatile international pricing. Tea remains one of Kenya’s largest foreign exchange earners and a major employer, particularly in rural regions where smallholder farming supports millions of livelihoods.
According to the Kenya National Bureau of Statistics, Kenya earned approximately 187 billion Kenyan shillings ($1.44 billion) from tea exports in 2025. However, the overwhelming majority of those exports consisted of CTC black tea — short for “cut, tear, curl” — a lower-cost processed tea commonly used in tea bags and sold in bulk commodity markets.
Industry analysts say this export structure has limited Kenya’s ability to benefit from rising global demand for premium and traceable specialty teas, where pricing margins are significantly higher and consumers increasingly prioritise origin, sustainability credentials and artisanal production methods.
According to the Kenya Export Promotion and Branding Agency, specialty teas currently account for only about 1% of Kenya’s tea exports despite the country’s favourable growing conditions and long-standing position as one of the world’s leading tea producers.
The shift toward specialty tea production also reflects wider debates across African commodity-exporting economies about value addition, branding and industrial upgrading. Many African agricultural exporters continue to depend heavily on raw or semi-processed commodity exports, leaving higher-value processing, branding and retail margins concentrated in Europe, North America and parts of Asia.
For Kenya, expanding specialty tea exports could support broader efforts to diversify export revenues at a time when African economies are facing rising fiscal pressures, currency volatility and increasing competition in global agricultural markets. Higher-value agricultural exports are also viewed as an important source of foreign exchange earnings as governments across the continent seek to strengthen external balances and reduce vulnerability to commodity price swings.
The partnership may also strengthen Kenya’s position within evolving sustainability and traceability standards shaping international food and beverage markets. Premium tea buyers in Europe are increasingly demanding stronger environmental, labour and supply-chain transparency standards, creating both opportunities and compliance pressures for African producers seeking access to higher-margin markets.
While Kenya’s tea sector has historically competed on scale and cost efficiency, the agreement with Palais des Thés suggests a growing recognition within the industry that long-term competitiveness may increasingly depend on branding, quality differentiation and direct access to premium global consumers rather than volume exports alone.
