Commodities

Kenyan tea exports to Pakistan hits Sh39bn

tea

A woman plucks tea on a farm in Kiptagich, Kuresoi South in Nakuru County along the Olenguruone- Bomet road in this photo taken on Monday, May 03, 2021. PHOTO | JOHN NJOROGE | NMG

geraldandae

Summary

  • Pakistan purchased tea worth $350.9 million (Sh39.8 billion) at the Mombasa auction in the 10 months to October, cementing its position as Kenya’s leading market for the beverage.
  • Industry performance report from the Tea Directorate shows that the Asian country bought 37.1 percent of the total exports in the review period, surpassing the $306.5 million (Sh34.75 billion) it ordered a year earlier.

Pakistan purchased tea worth $350.9 million (Sh39.8 billion) at the Mombasa auction in the 10 months to October, cementing its position as Kenya’s leading market for the beverage.

Industry performance report from the Tea Directorate shows that the Asian country bought 37.1 percent of the total exports in the review period, surpassing the $306.5 million (Sh34.75 billion) it ordered a year earlier.

The volume of tea exported to Pakistan increased to 173.7 million kilos in the review period from 151.7 million kilos in the same period last year out of the total 467 million kilos that was offered at the market.

“The total export volume for the 10 months was up nine percent to hit 467 million kilogrammes, which was higher than 428 million kilos recorded in the same period of 2020,” said the directorate.

All the top 10 buyers of Kenya’s tea, except the UK, registered an increase in volumes of the beverage that they bought from the Mombasa auction.

In the 10 month period the average auction price for Kenyan tea was unchanged with the same period of last year at $2.02 (Sh229).

In the period under review, Kenya tea was shipped to 48 export destinations, compared with 49 countries in the same period in 2021.

The 10 export destinations, most of which are traditional markets for Kenyan tea accounted for 89 percent of the total volume that was shipped out of the country in the review period.

Traditional markets

Kenya has been relying on the top traditional markets of Pakistan, UK, Sudan, Egypt, Russia and Iran among others to sell most of its tea but the directorate is now scouting for new markets to boost sales.

The directorate has been banking on emerging markets and an increase in local consumption to improve the sale of the beverage and boost farmers’ earnings.

Significantly higher tea imports from Kenya were recorded amongst the emerging markets of Ireland, Finland, USA and Ukraine.

Kenya has been trying to promote local consumption of the commodity, but the growth has been slow. In the review period, local consumption stood at 31.03 million kilos, down from 33.69 million kilos the year before.