TANZANIA – Tanzania has reversed its decision to suspend tea imports, creating an avenue for Kenya tea traders to resume exports to their neighboring country.
The Tea Board of Tanzania, the regulatory body overseeing the country’s tea sector, issued a memo on Wednesday announcing the resumption of the issuance of import licenses, effective February 19, 2024.
“This is to inform you that the issuance of import permits will resume with effect from February 19, 2024,” said the board memo to tea processors, blenders, packers, and traders.
“With this resumption, you are all reminded to observe all terms and conditions as stipulated in the Tea Act and Regulations before and after importation to ensure that you conduct fair business and the tea reaches the final consumers in the quality that meets domestic and international standards.”
Tanzania initially suspended the issuance of new tea import permits earlier in the month, citing concerns about the quality of tea shipments entering its market.
The decision to lift the suspension comes as a relief for Kenyan traders, as it opens doors for the resumption of tea exports to Tanzania.
Kenya has expressed appreciation for Tanzania’s decision to resume the issuance of tea import permits.
Kenya trade PS Ombudo K’Ombudo praised the move and announced plans for a Joint Trade Council meeting between the two countries in the coming weeks to address and resolve trade barriers.
Kenya has been working to enhance its tea exports to Tanzania, even though the volume of tea exported to the neighboring country remains relatively small. In 2022, out of 40 export destinations for Kenyan tea, Tanzania accounted for the lowest volume of consignments, with only 1,200 kilograms of tea exported.
While Pakistan, Egypt, and the United Arab Emirates (UAE) continue to be the largest buyers of Kenya’s tea globally, efforts are underway to strengthen trade relations within the East African Community.
As part of efforts to improve exports of tea, Kenya is considering dropping the minimum price of US$2.43 per kilogram of tea sold at the Mombasa auction to stimulate exports.
This decision follows concerns raised by traders who are grappling with unsold tea consignments due to a lack of buyers. The minimum price was introduced in 2021 specifically for tea sold by the Kenya Tea Development Agency.
Despite challenges, tea production in Kenya has shown positive growth, with an eight percent increase in the first 10 months of 2023.
The rise in production, attributed to higher rainfall, reached 52.79 million kilograms in October, marking a notable increase from 48.3 million kilograms in September.
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