President Ruto flags off Kenya tea to Ghana under AfCFTA trade initiative

NAIROBI— President William Ruto has directed the Ministry of Trade to develop a Kenyan tea brand to guarantee farmers good returns from their labour.

The Head of State noted that for a long time Kenya has helped other countries to brand their tea with the good quality Kenyan tea, saying that practice must change.

Ruto spoke at the Kenyatta International Convention Center in Nairobi on Wednesday when he flagged off the first consignment of Kenyan tea destined for Accra, Ghana, under the African Continental Free Trade Area (AfCFTA) guided trade initiative.

The President added that in the next five years Kenya’s value added tea for export must rise from 5 per cent to 50 per cent at the minimum, noting that competitors are producing approximately 60 percent of what Kenya produces but earn three times because they are adding value to their tea.

When flagging off five export consignments from Kenya Tea Packers-KETEPA, Ruto said the government is willing to advance credit to the Kenya Tea Development Agency (KTDA) to meet its six months orthodox tea global orders.

Kenya’s tea exports to Ghana and Benin have been zero rated as Kenya starts exports to West Africa market under the African Continental Free Trade Area. Farmers affiliated to Kenya Tea Development Agency-KTDA will earn Ksh 30.5 million from the first consignment after Ghana and Benin removed the 10pc import levy on Kenyan tea.

“Kenya is strongly committed to exploiting the full potential of value addition and unlocking the opportunities available within the African Continental Free Trade Area (AfCFTA) framework,” said Ruto.

The government says it is seeking more markets in West Africa with negotiations with Nigeria ongoing.

“I expect the relevant Ministry to initiate a conversation with Cameroon, Tunisia, Morocco and all other major tea importing countries in the African continent concerning the tea market,” he said.

KTDA is seeking an immediate Ksh 800 million grant from the government to facilitate 10 orthodox processing factories meet their six months orders from international buyers.

A Ksh 1.5 billion user facility is being constructed at the Dongo Kundu Special Economic Zones Authority to facilitate value addition of tea from the current 5 to 50pc to boost earnings for farmers.

“For a very long time Kenya has produced tea that has helped everybody brand their low quality. But it is time we take advantage of our good quality tea and brand it and everybody else who wants to use our good quality must work with us,” said Ruto.

Kenya is also in talks with South Africa to reduce import levy on Kenyan tea from 80pc to 10pc.

According to the President, the government will take decisive action to enhance the diversification of the economy to unleash the full force of the manufacturing sector in order to increase farmer earnings.

Source: NAM NEWS NETWORK