KENYA – The value of Kenyan tea exports to Pakistan surged by 10.6 percent in the first half of 2024, reinforcing Pakistan’s position as the top buyer of the beverage.
According to data from the Central Bank of Kenya (CBK), the value of tea exports to Pakistan reached KES 35.06 billion (US$271.86 million) between January and June, up from KES 31.6 billion (US$245.7 million) during the same period in 2023.
This growth increased Pakistan’s share of Kenya’s tea export earnings from 38 percent to 40.6 percent.
Pakistan’s dominance in the Kenyan tea market is attributed to its large population and cultural preference for tea.
Kenya has been working to diversify its market reach by targeting new markets such as Iran, Kazakhstan, and Russia, to reduce its reliance on Pakistan.
These efforts have yielded positive results in some areas, with tea sales to Russia and the United States showing significant growth, rising by 53.7 percent and 99 percent, respectively.
Despite the increase in exports to Pakistan, Kenya experienced a decline in sales to other key markets.
The United Arab Emirates (UAE), one of the major buyers of Kenyan tea, saw a 34.6 percent drop in sales, amounting to KES 4.5 billion (US$35.62 million).
Similarly, tea exports to Afghanistan and Iran decreased by 76.8 percent and 30 percent, reaching KES 1.8 billion (US$14.14 million) and KES 3 billion (US$23.35 million), respectively.
Other significant markets also recorded declines in Kenyan tea imports. Egypt experienced a slight decrease of 2.1 percent, with sales amounting to KES 12 billion (US$93.34 million). Sudan saw a more drastic reduction of 68.6 percent, with tea sales falling to KES 477 million (US$3.7 million).
Despite the challenges in these markets, Kenya’s overall tea export earnings rose by 4.2 percent to KES 86.1 billion (US$668 million) during the first half of 2024, up from KES 82.6 billion (US$641 million) in the same period last year.
The average price for top-grade Kenyan tea remained stable at US$2.88 per kilogram in this week’s sale, with the quantity offered slightly increasing to 143,332 packages, compared to 142,561 packages the previous week.
To enhance income from tea exports, the Kenyan government has urged producers to diversify their offerings beyond traditional black CTC tea to include orthodox and specialty teas.
The Kenya Tea Development Agency (KTDA) plans to introduce a dedicated trading platform within the tea auction for these teas, aiming to improve their visibility and marketability.
Additionally, the government is implementing measures to improve the quality of Kenyan tea by setting a minimum quality standard of 65 percent.
The government also seeks to sign Memorandums of Understanding (MOUs) and bilateral agreements with key international markets to improve access to Kenyan tea.
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