Kenya Earns Ksh200 Billion in Tea Exports

Kenya was the second largest tea exporter on this planet in 2022 with its earnings estimated to be over Ksh200 billion.

Within the rating compiled by software program buying and selling firm, Contago, primarily based on commerce statistics, Kenya was solely crushed by China which had earnings estimated at Ksh330 billion.

Kenya, which was known as Africa’s tea jewel, was famous to be among the many main producers of black tea, which is being sought out by many international locations.

Notable international locations Kenya topped have been Germany (Ksh36 billion) and the UK (Ksh19.4 billion) which have been ranked at positions seven and 10 respectively. Nevertheless, it have to be famous that these international locations will not be main tea producers which suggests their output can’t be in contrast with a big producer like Kenya.

“Main the pack is China, with an export worth of roughly $2.08 billion. Referred to as the birthplace of tea, China’s various local weather and wealthy cultural heritage have made it a powerhouse in tea manufacturing and export. The nation’s huge vary of teas, from inexperienced to oolong, continues to captivate the worldwide market.

“Kenya follows because the second-largest exporter, with exports value round $1.39 billion. Kenya’s tea trade is a crucial element of its economic system, and the nation is famend for its strong, fragrant black teas, that are extremely wanted worldwide,” learn the report partially.

In line with the info, Pakistan was Kenya’s essential vacation spot for Kenya’s tea adopted by Egypt.

The UK, the United Arab Emirates, Yemen, Iran, Russia, and Sudan adopted in that order.

Kenya is reported to have exported 410 million kilograms to its key commerce companions throughout the globe. In 2021, Kenya exported solely 388 million kilograms.

Stories by the Tea Board of Kenya (TBK) recommend that the nation made extra earnings in 2023 owing to the beneficial climate situations that have been witnessed within the second half of the yr.

Manufacturing for October was additionally way more enhanced in comparison with 48.30 million kgs recorded in September and 45.57 million Kgs in August this yr.

“Improved manufacturing was attributed to moist climate situations skilled in a number of components of the nation throughout October, which was a continuation from September over a number of components of the nation,” the Tea Board of Kenya (TBK) famous in its newest report for 2023.

The Greenback Issue

The depreciation of the Shilling might additionally play in Kenya’s favour on condition that the exports are paid for in {dollars}.Â

For example, regardless of a hunch in manufacturing witnessed between February and March 2023 (63.21 million kilograms), Kenya made Ksh29.7 billion as compared with an analogous interval in 2022, the place Kenya earned 26.9 billion regardless of having extra yields (87.42 million kilograms).

Between February to March 2022, the greenback traded at a median of Ksh113. In the identical interval in 2023, the greenback traded at a median of Ksh127.