Kenya's tea exports on decline

NAIROBI, Aug. 14 (Xinhua) -- The ongoing armed conflict in Sudan, as well as the Russia-Ukraine conflict, have affected Kenya's tea exports, stifling half-year exports amid low global prices, the Tea Board of Kenya (TBK) said Monday.

Kenya exported 191,000 tonnes of tea worth 62.1 billion Kenyan shillings (about 432 million U.S. dollars) in the period ending June, a major decline from 243,000 tonnes valued at around 614 million dollars in a similar period in 2022, the TBK said, adding the 29 percent decline in the value of exports is due to lesser demand for Kenya's tea in the global market,

"The average auction price for Kenya tea stood at 2.29 dollars per kilo, which was lower compared to 2.56 dollars per kilo in the first six months of 2022. The auction prices have been on a declining trend since the second quarter of 2022 owing to lesser demand due to recession in the global market," the TBK stated. "This recession, which is largely attributed to the ongoing Russia-Ukraine crisis, and the recent armed conflict in Sudan has affected tea exports in key markets."

In the six months, Pakistan remained Kenya's top destination of tea with the country importing 65,728 tonnes from the East African nation, followed by Egypt at 28,600 tonnes and the United Kingdom at 20,546 tonnes, according to the TBK.

Despite the decline in volumes exported, tea production increased significantly in Kenya to stand at 273,640 tonnes in the six months, a rise from 271,300 tonnes in a similar period in 2022, due to favorable weather.

Tea is one of Kenya's foreign exchange earners alongside coffee, tourism, and horticulture, with the country earning 990 million dollars from the crop in 2022, a rise from 979 million dollars in 2021.