Kenya and Iran have moved to resolve a trade dispute that has stalled tea exports, agreeing on a 60-day timeline to lift the ban. The breakthrough came during the 7th Session of the Kenya–Iran Joint Commission for Cooperation (JCC) in Nairobi, co-chaired by Prime Cabinet Secretary Musalia Mudavadi and Iran’s Minister of Agricultural Jihad, Dr. Gholamreza Nouri Ghezalcheh.
The two nations will establish a joint committee tasked with eliminating trade barriers, enforcing quality control, and rebuilding trust in Kenyan tea. The ban, which has disrupted a key export market, was prompted by a criminal malpractice involving Kenyan firm Cup of Joe Limited. Investigations revealed that the company imported low-grade tea, blended it locally, and re-exported it to Iran as premium Kenyan tea.
The Tea Board of Kenya has since deregistered the company, which now faces prosecution. Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe stressed that new, stricter regulations will be introduced to protect the country’s tea industry from similar incidents.
“Kenya’s tea sector is one of our largest foreign exchange earners, and we must protect it from unscrupulous traders who damage our reputation,” Kagwe said.
Tea is a cornerstone of Kenya’s agricultural exports, and the Iran embargo has significantly affected earnings for farmers and exporters. Trade data shows that in 2023, Kenya exported 12.4 million kilograms of tea to Iran worth KSh4.28 billion a sharp decline from 17.8 million kilograms valued at KSh5.85 billion in 2022.
The financial hit has been felt most by smallholder farmers, many of whom rely heavily on tea income. Stakeholders have warned that prolonged restrictions could cause long-term damage to market relationships.
The joint committee will develop a framework to ensure all tea exports to Iran meet strict quality standards, with the goal of resuming shipments before the end of the 60-day deadline. Both governments hope the measures will restore confidence and safeguard the integrity of Kenyan tea in international markets.
If successful, the agreement will not only reopen a vital market but also signal Kenya’s commitment to protecting its agricultural exports from fraudulent practices that threaten its global standing.
