The Kenyan government has announced plans to source new markets for tea, a move that seeks to stabilize the price of the product during price fluctuations.
“The Ministry, in collaboration with stakeholders, has identified Iran, Russia and China as potential market destinations for Kenya tea and are in the process of preparing market strategies to enhance exports to these market destinations,’’ Agriculture Cabinet Secretary Willy Bett was quoted by the local dailies.
The move comes following recent data which reveals that Kenya tea auction prices declined significantly from an average of USD 2.98 per Kilogram in 2015 to 2.36 USD in 2016 on the back of increased supply and the the negative impact due to the weakening of the Kenya Shilling against the dollar.
Mr Bett says the increased supply is due to favorable weather conditions experienced in tea growing areas in the first half of 2016.
In 2016, Kenya earned Sh120.6 Billion (USD 1.19 Billion) from tea export which was a slight drop from Sh125.2 Billion (USD 1.27 Million) recorded in the previous year.