This archive report was first published on 18 August 2019.
Published on August 18, 2019, Kenya is hoping to benefit from the current tensions between India and Pakistan to boost its tea exports to Karachi.
The East Africa Tea Traders Association (Eatta) believes that Kenya has an opportunity to raise its exports to Pakistan, the leading buyer of Kenyan tea, whose numbers have been declining.
India supplies Sh3 billion worth of tea to Pakistan every year, making it the second-largest market for Kenyan tea after Kenya itself.
However, the earnings from increased exports to Pakistan may be lower due to the devaluation of the Pakistani rupee against the US dollar.
The impact of currency devaluation is being felt in Kenya, with the rupee having lost value for nearly a year.
Low global oil prices and currency devaluation in major tea-buying countries have negatively impacted the domestic price of Kenyan tea.
Edward Mudibo, Managing Director at Eatta, said, "We would like to use this impasse to further our tea exports to Pakistan as Kenya stands to benefit from this standoff."
