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The report, released on August 6, 2026, shows that the agriculture sector had reinforced its position as the backbone of Kenya's economy, with the value of agricultural output rising from Sh3.64 trillion in 2024 to Sh4.07 trillion in 2025. It attributed the growth to consistent investments by county governments across key agricultural value chains, despite persistent challenges in some subsectors.
The latest Quarterly Gross Domestic Product (GDP) Report released by the Kenya National Bureau of Statistics (KNBS) shows agriculture, forestry and fishing activities grew by 4.9 per cent during the first quarter of 2026. The performance matched the country's overall economic growth, reinforcing the sector's place as one of the biggest contributors to national development.
Speaking at the World Food Prize Foundation's DialogueNext Forum on Tuesday, Kagwe called on African countries to rethink their approach to agricultural exports and strengthen local processing industries before products reach international markets.
Appearing before the Parliament of Kenya Departmental Committee on Agriculture and Livestock during discussions on the ministry’s Sh79.06 billion 2026/27 budget estimates on Tuesday, Kagwe said the levy would fund modernization and position Kenyan tea as a premium global product.
Kenya continues to maintain a positive trade balance with the Netherlands, with imports from the European country standing at Sh44.8 billion, leaving a surplus of about Sh24.8 billion.
The investigation was launched after several MPs from tea-growing areas petitioned the House over unfair pricing and minimal bonuses. The report will examine how tea prices are determined and uncover factors that affect returns for farmers, including value chain costs in different regions.
The Nairobi Securities Exchange-listed agribusiness firm said net profit for the six months ended June fell to Sh295.54 million, down from Sh347.5 million in a similar period last year.
Agriculture Principal Secretary Kipronoh Ronoh said the action is part of wider reforms in the tea industry aimed at ensuring accountability and stability.
The East Africa Tea Trade Association (EATTA) said it had received approval to clear 207 containers of Kenyan tea, each containing 400 bags, which had arrived in Sudan before the embargo was implemented.
CS Mbadi stated that there is no double taxation within the tea sub-sector. He emphasized that any tax applied to tea at any stage of the value chain is consistent with other sectors, ensuring a fair and equal taxation system.