Kenya's tea earnings to likely fall in 2016, regulator says
A farmer picking tea: Kenya is the world's leading exporter of black tea. FILE PHOTO | NATION MEDIA GROUP
What you need to know:
The Agricultural, Fisheries and Food Authority (AFFA) said total output fell 10 per cent to 399.21 million kg in 2015.
Kenya sees tea export earnings of Sh115-120 billion this year depending on the exchange rate, after a 23 per cent rise in earnings to Sh125.25 billion ($1.23 billion) in 2015, the agriculture industry regulator said Wednesday.
Kenya is the world's leading exporter of black tea with the commodity being a major foreign exchange earner.
The Agricultural, Fisheries and Food Authority (AFFA) said total output fell 10 per cent to 399.21 million kg in 2015.
"The impressive earnings resulted from improved prices during the year, which registered an average of $2.98 per kg compared to $2.16 recorded during the corresponding period of 2014," Alfred Busolo, AFFA's acting director general told a news conference, adding average price per kg rose 38 pct.
He said local sales earned tea farmers another Sh14.6 billion.
He said earnings were also boosted by a weakening shilling, which hit lows last seen in October 2011 in late 2015.
Busolo said the drop in output was due to dry weather in tea producing areas in the first five months of 2015.
