NAIROBI— Kenya has made the first bulk shipment of value added tea worth Ksh 3.7 billion to Australia as the government embarks on measures to cut bulk export of raw tea.
The tea consignment weighing 2.68 metric tonnes was flagged off by Agriculture Cabinet Secretary Mithika Linturi who said the shipment to Australia under the Kenyan Brand “Akina”, produced by Empire Teas EPZ, is expected to fetch an average price of Ksh 1,364 ($11) per kilo of made in Australia tea.
According to CS Linturi, the packed tea is part of a strategy to install 12 high value specialty tea lines at selected KTDA factories in order to increase earnings among smallholder tea farmers.
He noted that the opening up of the Australian market for Kenya value added teas with a Kenyan brand name is a significant development for the Kenyan tea industry.
Currently, Pakistan and Egypt account for about 60pc of Kenya’s total tea exports as the world’s number one exporter of black tea seeks to diversify markets.
Linturi added that the initiative is a bold step towards the realization of President William Ruto directive to increase the volumes of value-added Kenyan tea exports from the current 1pc to 50pc by 2027.
The shipment is further expected to shield the Kenyan tea industry from overreliance on a few traditional markets which have a higher affinity for bulk teas and which get easily destabilized by economic and political shocks such as those currently being experienced in Egypt and Pakistan.
The latest shipment comes barely three months after President William Ruto flagged of a value added consignment to Ghana under the African continental free trade area pilot programme.
KTDA is also seeking raise Ksh 800 million to finance establishment of specialty tea lines in 12 of its factories, to meet growing demand.
Source: NAM NEWS NETWORK