Commodities

Half-year tea earnings drop by Sh5 billion

tea

Workers picking tea in Kericho. FILE PHOTO | NMG

geraldandae

Summary

  • Data from the Tea directorate indicate the value in the review period dropped to Sh55 billion from Sh60 billion recorded in the same period last year.
  • Tea Directorate attributes the decline to low demand, which also impacted negatively on price per kilo, having dropped to Sh221 from Sh239 in the corresponding period last year.
  • The regulator says the volume of tea exported to the world market dropped by two million kilos in the six months to June, representing a one per cent decline.

Kenya’s earnings from tea in the first half of the year dropped by Sh5 billion as the sector took in the negative effects of the Covid-19 that impacted negatively on demand for the commodity in the world market.

Data from the Tea directorate indicate the value in the review period dropped to Sh55 billion from Sh60 billion recorded in the same period last year.

Tea Directorate attributes the decline to low demand, which also impacted negatively on price per kilo, having dropped to Sh221 from Sh239 in the corresponding period last year.

The regulator says the volume of tea exported to the world market dropped by two million kilos in the six months to June, representing a one per cent decline.

“Access to most markets is still a challenge due to the impact of Covid-19 on commodity distribution and trading across the globe,” said the directorate.

“Apart from supply disruption, the pandemic has also created global economic shocks thereby reducing consumer purchasing power,” added the regulator.

Export to Kenya’s two major markets of Pakistan and Egypt dropped by five per cent to each of the destinations.

Pakistan, which has been Kenya’s top buyer of the commodity for years, accounted for 32 per cent of the total volumes that were exported in the review period.

Egypt is the second top buyer of the Kenyan tea with UAE, Yemen and Afghanistan falling within the top ten purchasers of the beverage.