By TBK
Kenya and Pakistan have reaffirmed their strong trade ties in the tea sector while addressing growing concerns over market distortions, branding issues, and price manipulation.
This was during a high-level meeting between Kenya’s Cabinet Secretary for Agriculture and Livestock Development, Mutahi Kagwe, and Pakistan’s High Commissioner to Kenya, Ibrah Hussain Khan.
Also present at the meeting was Tea Board of Kenya (TBK) CEO Willy Mutai, who emphasized the importance of the Pakistani market for Kenyan tea. “Last year alone, Kenya exported 206 million kilos of tea to Pakistan,” said Mutai.
“This was a slight drop from 209 million kilos the year before, and 212 million kilos in 2021.”
With tea fetching an average price of KSh339 per kilo, 206 Million Kgs export with value of KSh70 Billion, Pakistan remains Kenya’s top tea export destination.
Kagwe acknowledged Pakistan as a key trading partner and praised the existing cooperation. However, he raised critical issues affecting the Kenyan tea industry, particularly the role of the Pakistan Tea Association in influencing global tea prices.
“When the Pakistan Tea Association issues circulars, it unintentionally sets the benchmark for other markets, creating price distortions across the entire supply chain,” said Kagwe.
“Our farmers are complaining. We want market forces to play out freely.”
Kenya has also expressed concern over tea blending and branding practices, where lower-quality teas are mixed with Kenyan tea and marketed under Kenyan brand names.
“If you must blend, do not use Kenyan names. It is misleading and harmful to our farmers,” Kagwe emphasized.
High Commissioner Khan responded by assuring the Kenyan side that Pakistan is committed to protecting the integrity of the Kenyan tea market.
“We will not allow any activities that distort the Kenyan tea brand or hurt the farmers who work hard to produce this high-quality product,” said Khan. “All concerns raised by Kenya are valid and will be addressed with urgency.”
The two parties also discussed the shelf life of tea, a matter that has been a sticking point in recent years. While the Pakistan Tea Association has advocated for a one-year shelf life, Kenya is pushing for an 18-month standard to allow flexibility on both ends of the supply chain.
On broader trade ties, both countries praised their robust relationship, with bilateral trade now valued at $1 billion annually—a milestone viewed as a strong example of South-South cooperation.
“Kenya is a household name in Pakistan. The perception there is that tea only grows in Kenya,” noted Khan. “This relationship is not only economically important but also culturally significant.”
The two sides agreed to continue engaging on a possible Free Trade Agreement to further deepen economic cooperation and resolve outstanding trade barriers.
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