In May, Kenya’s tea export market experienced a remarkable surge, with the average price per tonne reaching Kshs 335,407 (USD 2,351.4), the highest in almost eight years. This increase was driven by a weaker shilling and a rise in demand for the beverage. According to data from the Central Bank of Kenya (CBK), tea export earnings soared by 32.7% to Kshs 16.2 bn, the highest since March, up from Ksh12.2 bn in April.
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The boost in earnings was also supported by both higher beverage prices and increased volumes. Overall, the price level achieved was the highest since August 2015, when it reached Kshs 342,428 per tonne. Furthermore, tea growers contributed significantly to the improved figures, producing 57.9 mn kilograms in May, a considerable increase of 7.6 million kilograms from the same period the previous year.
This rise in tea production can be attributed to favourable weather conditions, particularly the well-distributed rainfall recorded across the country during the month of May. Regions like the west of the Rift Valley and the east of the Rift Valley experienced enhanced production due to moderate and high rainfall, respectively. However, despite these positive developments, Kenya’s tea export volumes are still facing challenges. The shortage of foreign exchange reserves and conflicts have impacted exports to crucial markets like Pakistan, Egypt, Yemen, Sudan, and the United Arab Emirates.
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The government is making efforts to address the situation, promising reforms to improve earnings for farmers. With the appointment of Enos Njiru Njeru as the new chairman of the Kenya Tea Development Agency (KTDA), there are hopes for exploring new markets to further boost Kenya’s tea industry.
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