This archive report was first published on 18 August 2019.
On August 18, 2019, Kenya was poised to benefit from the escalating tensions between India and Pakistan, with the East African Tea Traders Association (Eatta) eyeing an opportunity to raise its exports to Pakistan.
According to Eatta Managing Director Edward Mudibo, Kenya stands to gain from the current standoff, which has seen India suspend the semi-autonomous status of the contested Kashmir region.
India supplies approximately Sh3 billion worth of tea to Pakistan every year, making it the second-largest market for Kenyan tea exports after Kenya itself.
However, the earnings from increased exports to Pakistan may be lower due to the country's depreciating currency, the rupee, which has been losing value against the dollar for close to a year.
Low global oil prices and currency devaluation in major importing countries have also negatively impacted the domestic price of Kenyan tea.
Kenya relies heavily on countries such as Pakistan, Egypt, the UK, Sudan, and the United Arab Emirates for tea exports, but volumes have been declining due to trade barriers in some markets.
In the last financial year, Pakistan imported 184 million kilogrammes of tea, with 84% coming from Kenya, and the Kenya Tea Development Agency's produce accounting for 57% of the total.
