Kenya, China inaugurates tea trade center to boost bilateral trade

CHINA – Kenya and China have taken a significant step towards strengthening their tea industries and boosting bilateral trade with the launch of the China-Kenya Tea Trade Centre in Shanghai. 

The initiative aims to address longstanding challenges in Kenyan tea exports to China and unlock new opportunities for Kenyan farmers. 

Speaking at the launch event, Kenya’s Agriculture Cabinet Secretary, Mithika Linturi, expressed optimism about the trade center’s potential to transform Kenya’s tea market share in China. 

He highlighted the potential benefits for smallholder farmers, with Benny Tea, a Chinese company involved in the partnership, providing equipment and technology transfer to the Kenya Tea Development Agency (KTDA) and independent tea producers. 

The partnership is largely focused on Kenyan Orthodox and specialty teas which have faced challenges in meeting Chinese market preferences.  

Linturi acknowledged past limitations in Kenyan tea exports to China, citing difficulties in meeting specific aesthetic preferences for leaf and liquor appearance in the Chinese market. 

“This deficiency has been attributed to market access challenges and lack of appropriate manufacturing equipment and technical capacity needed to produce the kind of tea that would appeal to the Chinese market,” Linturi stated. 

The partnership presents a promising opportunity to transform the livelihoods of Kenyan tea farmers over the next three years. Within this timeframe, the ambitious goal is to facilitate the trade of at least 5 million kilos of tea annually between the two partners. 

The facility’s launch capitalizes on China’s growing interest in Kenyan Orthodox and specialty teas, a trend observed over the past decade.  

While China has traditionally imported black CTC teas, instant teas, and other orthodox teas from Kenya, India, and Sri Lanka to cater to Western tastes, demand for Kenyan specialty options has been increasing. 

This initiative builds upon earlier interactions between Kenya and Benny Tea. In 2019, the chairman of Benny Tea visited Kenya at the invitation of the Tea Board of Kenya, leading to discussions and a Memorandum of Understanding that laid the groundwork for enhanced tea trade collaboration. 

Looking ahead, Linturi encouraged Benny Tea to establish a value addition facility in Mombasa. This facility would focus on packaging and exporting teas to markets beyond China, leveraging Kenya’s favorable trade agreements with African nations, North America, and Europe. 

The launch of the China-Kenya Tea Trade Centre coincides with the Kenyan government’s plans to create a distinct Kenyan tea brand for international markets.  

This initiative, unveiled by President William Ruto, aims to elevate the visibility and market value of Kenyan tea, ultimately leading to increased export earnings.  

By establishing a unique brand identity, Kenya hopes to differentiate its products in the global tea market. 

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