Politics and policy
US-backed sanctions hit Kenya’s exports to Iran
Posted Sunday, July 8 2012 at 17:12
Njue Kiarie, the chairman of the Tea Traders Association, told the Business Daily that trade between Kenya and Iran has been declining steadily since January and nearly grinding to a halt since the beginning of the month.
Kenya exported 5.4 million kilogrammes of tea to Iran last year, accounting for the bulk of Sh1.9 billion worth of commodities sold to the oil producing state.
Iran last year signed a contract with the State-owned Kenya Meat Commission for the supply of 1,000 metric tonnes of beef and other meat products, but escalating dollar scarcity in the Persian country has left that deal on the rocks.
Kenya has been trying to diversify its export markets for tea to cut its reliance on traditional markets such as UK, Egypt, Sudan, Afghanistan and Pakistan that account for 70 per cent of the country’s total exports.