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Nairobi Business Monthly
Home»Briefing»Kagwe leads talks to unlock Iran market for Kenyan tea
Briefing

Kagwe leads talks to unlock Iran market for Kenyan tea

Samuel NjihiaBy Samuel Njihia18th April 2025Updated:18th April 2025No Comments2 Mins Read
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Mutahi Kagwe
Agriculture Cabinet Secretary Mutahi Kagwe, alongside Kenyan Ambassador to the UAE Kenneth Nganga, during their visit to Iranian business groups. (Photo: Wangari Ndirangu, KNA)
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Kenya, the world’s leading exporter of black tea, is ramping up efforts to expand market access in the Middle East by engaging with Iranian business groups in a bid to ease restrictions on tea exports.

On Thursday, Agriculture Cabinet Secretary (CS) Mutahi Kagwe led a high-level delegation to meet Iranian trade representatives, focusing on unlocking access to Iran’s lucrative tea market — which has faced trade challenges in recent years due to pricing caps and financial restrictions linked to sanctions.

“Reopening access to Iran’s robust market could be a game changer for tea farmers and the entire tea value chain,” Kagwe said in a press statement from his office.

The Nairobi Law Monthly September Edition

He noted that while tea exports to Iran have not been officially banned, complex payment channels and trade barriers have limited Kenya’s full access to the market.

Kagwe was accompanied by Kenyan Ambassador to the UAE Kenneth Milimo Nganga, Kenya Tea Development Agency (KTDA) Chairman Chege Kirundi, and CEO Wilson Muthaura.

The discussions also aimed at exploring expanded trade opportunities across the Middle East and Central Asia, aligning with Kenya’s long-term export diversification strategy.

Trade between Kenya and Iran stood at nearly USD 75 million in 2023, with Kenya exporting goods worth USD 46.03 million, according to the UN COMTRADE database.

Kagwe’s visit follows up on the 2023 state visit by Iranian President Ebrahim Raisi to Kenya, during which President William Ruto highlighted the strategic importance of deepening bilateral ties. That visit culminated in the signing of multiple cooperation agreements spanning agriculture, ICT, housing, and fisheries.

Kenya hopes that renewed diplomatic and commercial engagement will allow its tea — known globally for its rich flavour and quality — to reclaim and expand its footprint in Iran’s market.

The Nairobi Law Monthly September Edition
Kenya tea export
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Samuel Njihia

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The Nairobi Law Monthly September Edition
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