This archive report was first published on 26 August 2019.
On August 26, 2019, the Kenyan government announced a major breakthrough in its efforts to boost tea exports to China. Under a deal being negotiated with Chinese buyers, Kenyan farmers are set to export five million kilogrammes of specialty teas worth Sh7 billion to China in the next three years.
The export volumes are expected to increase to over 30 million kilogrammes annually, with an estimated value of Sh40 billion in the next 10 years. This significant increase in exports is expected to boost the Kenyan economy and create new opportunities for farmers.
The deal was announced after a meeting between Agriculture Cabinet Secretary Mwangi Kiunjuri and a delegation from Fuzhou Benny Tea Industry Company and the China National Forest Industry Federation Ecological Tea and Coffee Branch. The delegation arrived in Kenya on August 24 and is expected to sign memorandum of understandings (MoU) with five specialty tea processing factories by September 1.
According to Mr. Kiunjuri, the deal will enhance tea trade and open the Chinese market for more Kenyan products. He noted that the Chinese buyers will provide a warehousing facility for any Kenyan tea company that would wish to sell their teas in China and assist them in promoting their products.
Mr. Kiunjuri also highlighted the need for Kenyan tea manufacturers to have the right kind of machinery and technical expertise to manufacture teas that meet Chinese tastes and preferences. The Chinese buyers have agreed to provide manufacturing machinery and technical expertise to at least five factories in Kenya.
The deal has been welcomed by the Kenyan tea industry, with the Purple and Specialty Tea Association of Kenya Chairman Karanja Kinyanjui describing it as a major breakthrough. He noted that the deal will ease the marketing of Kenyan tea in the Chinese market, which has proved difficult in the past.
