By its origin in China, tea has spread to trade routes for centuries, which has become a daily ritual for half the world’s population.
Recently, Kenya President William Ruto, along with one of the top three tea producers in China, discovered opportunities to increase Kenyan Orthodox and special tea in China. Additionally, Kenya aims to strengthen its bilateral trade relations with China, according to a statement published on the Kenyan government’s website, expanding the export of important items in the Chinese markets such as coffee, avocados and McDamias.
The high-level meeting brought the key stakeholders of Kenya’s tea sector together, which included Representatives of the Kenya Ministry of Agriculture, Kenyatia Development Agency and Kenya Tea Board. ,Kenya’s Agriculture Minister Mutahi Kagway told local reporters after the meeting, “We will soon allow tea factories to sell their tea in international markets.
East African country is the world’s largest exporter of black tea.
In 2024, Kenya’s tea industry according to the country’s tea trade regulation bodies, Kenya Tea Board (KTB) supported about 158 billion KSH ($ 1.22 billion, € 1,065 billion) and supported over 750,000 farmers in the annual revenue.
Kenya Tea Board CEO Willy Mutai said, “Beni Tea Industries wants to invest $ 100 million in Kenya.” “According to Mutai, the compromise will allow Chinese firms to search as Beni tea, to export Kenya tax-free tea packaging material from China.
However, Kenai Tea Farmer for Samuel Curriyuki, the discovery of agreement may disrupt the local industry. ,When it comes to our supply chains, there may be an obstruction, Kariuki, who is a manager in Sensary Garden Kenya, told DW.
“Tax-free packaging materials from China can reduce local packaging suppliers.”
Search for more tea markets
Challenges discover rapidly rising prices, competing with other tea -making countries, and the need for price joint has forced Kenya to look for a strategic partnership in his tea business. “Internal, we face a lot of tough certification requirements that are very expensive and complex for us as farmers,” Karuki said.
“Rainforest coalition and fair trade -like standards require some amount that we are not able to be as farmers. Karuki said.
In addition, Trump’s Tatifashev sent shockwaves through global markets.
Kenya hopes that the new partnership with China wants to improve high -quality Kenyan tea production, diversity in Kenya’s exports, and align the country’s tea industry with international market demands.
In addition, this will facilitate modern factories in Kenya to install for technical transfer and bring equipment to Kenya, which can be used to produce tea that matches China’s quality standards.
Kenya standard user expects to install packaging features, allowing tea to add farmers to the source. Mutai reported that Kenya is changing IT policies to accommodate international buyers, allowing them to direct raw materials or branded tea from factories in Kenya.
Effect of Trump Tatifes
Trump’s tariff on China has forced the world’s second largest economy to look for and unite its trade partnership with countries such as Kenya. Although Trump gave the world a 90-day relief, Kenya is struggling with 10% universal tariff that the US President retained.
We are currently doing 10% of Tawries on the US, “Mutai said, emphasizing that American trade barriers provide a significant contradiction to Chinese investors in tea.” They can come here in Kenya and pack. ,
Kenya’s tea industry stands to take great advantage of two major trade structure. African continental free trade sector (AFCFTA) and African Development and Opportunity Act (first).
Two important trade deals of Kenya
Under AFCFTA, Kenya achieves preferable access to a vast African market, which reduces the Taf and reduces trade obstacles between the member states. The agreement facilitates smooth intra-African trade, allowing Kenai tea to reach new and growing markets in the continent.
Therefore, the regional value encourages chains, enables to process and package tea locally before exporting Kenya, which increases earnings and generates employment. The agreement has already shown a promise, Kenya has exported tea to Ghana under the AFCFTA protocol.
On the other hand, the first Kenya offers duty-free access to the United States for a wide range of products including tea. The deal gives Kenai tea a pricing advantage in the US market and search as open opportunities, branded and special tea for value -added exports. Thus the first improves quality improvement and investment in packaging, helps Kenya forward the price chain and appeal to premium consumers.
Edited by: chrispin mwakideu
