According to the Kenyan Tea Board Directorate, tea exports from Kenya dropped by 26 percent in the first quarter of this year due to conflicts in Sudan.
Data from the Kenya Tea Board shows the total volume of tea exported in the review period was 99.8 million kilograms, a drop from the 135 million kilos recorded in the corresponding period last year. While exports to Khartoum were reduced by 59 percent, orders from Pakistan fell by 48 percent.
Related Content: Tea Farmers Get Sh2.47 Billion Payment For January Deliveries
“Lower export volumes were due to fewer imports by Pakistan, Egypt, and Sudan owing to challenges of forex reserves affecting these markets,” said the directorate.
The board added that the prolonged fighting in Sudan, which is now entering the second month, will have a negative impact on farmers, whose earnings are likely to reduce, with Kenya facing an overall decline in forex earnings due to a dip in export volumes.
“The prolonged fighting in Sudan, which is now entering the second month, will have a negative impact on farmers, whose earnings are likely to reduce, with Kenya facing an overall decline in forex earnings due to a dip in export volumes,” the board said.
Related Content: Ukraine War Slashes Kenyan Tea Exports To Russia By Ksh 1 Billion
Traders expect orders for the commodity to decline amid unrest in the country. The traders have lamented the war, which has had a huge impact on the teas that they sell to Sudan and it has significantly reduced the volumes.
“The war has had a huge impact on the teas that we sell to Sudan and it has significantly reduced the volumes,” said Peter Kimanga, a Mombasa-based tea trader with Global Tea Commodities.
The Tea Board has promised traders to look for new tea markets as it moves to diversify the market for the beverage and cut overreliance on the top 10 buyers who account for 85 percent of the total volumes that are exported.
Kenya’s earnings from tea exports in 2022 increased despite a drop in volumes, as its currency weakened against the US dollar and prices of the commodity improved.
Related Content: Kenya Tea Company Suspends Operations After Protesters Burn Machines