This archive report was first published on 1 July 2019.
Kenya's tea industry is bracing for a potential price drop, as the country's top export markets, Pakistan and Sudan, grapple with economic and political turmoil.
According to Pakistan's National Economic Council, the country's currency has plummeted by over 20 percent against the dollar in the past year, with inflation rising to 9 percent and impacting purchasing power.
The council also forecasts a slowdown in Pakistan's economy to 2.4 percent and a rise in inflation to 13 percent over the next two years.
Kenya's tea exports to Pakistan have already taken a hit, with volumes declining by 37 percent in the first quarter of this year compared to the same period last year.
Tea exports to Sudan have also slowed down following the recent political shocks in the country, including the ousting of President Omar El Bashir.
Kenya has been targeting Iran as a major buyer, but sanctions imposed by the US and the political turmoil in Sudan have affected tea exports to these countries.
Iran has a large population of over 80 million people with a per capita consumption of 1.4 kilogrammes, creating a huge potential market for Kenya's tea.
However, tea exporters to Khartoum are still facing a shortage of dollars after the coup, with delayed payments causing difficulties for traders.
