Kenya’s new big market for tea
Thu, 20 Nov 2008 14:32
TradeInvestKenya Staff



Kenya is on the verge of finding a new big market for its black tea in China - the world's fastest growing economy.

This opportunity comes at a good time for Kenya which has in the past relied heavily on Pakistan and Egypt markets for its tea. Finding the new market offers the country the chance to spread its risk and stand on a more stable negotiating ground with its trading partners.

China has been traditionally a big consumer of green teas, which are mostly grown by local farmers. But now the Chinese are beginning to consume black tea and this has seen the value of Kenyan tea exports to China grow by 57%.

Tea farmers also hope the sheer size of the Chinese market will stop a downward spiral of tea prices precipitated by a glut in the global market.

Tea is one of Kenya's top agricultural produce and exchange earner. It is a major source of employment with over 2 million people in tea farming, manufacturing, retail, transport and marketing.

Since the sub-sector was liberalised many major investment opportunities have become available in connection with processing and packaging of tea for export, especially under the manufacturing under bond and EPZ schemes.

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