Kenya's tea export volumes surge 19% in Q1'24

Kenyan tea export volumes have seen a significant surge of 19% in the first quarter of 2024, driven by increasing demand in both traditional and emerging markets. This growth trend presents a mix of opportunities and challenges for the East African nation, particularly in terms of diversifying export markets, ensuring quality standards, and addressing the impact of climate change on production. CNBC Africa's Tabitha Muthoni recently sat down with Lindah Oluoch, the CEO of the Kenya Tea Growers Association (KTGA), to delve into the factors behind this growth and its implications for farmers, sustainability, and Kenya's competitive position in the global tea market. Lindah Oluoch shed light on the increase in export volumes, pointing out that while there has been a rise in prices in 2024, it may not necessarily indicate a boost in actual exports. She highlighted key factors such as the behavior of buyers at auctions and shifting market dynamics, like Chad's direct importation of Kenyan tea due to changes in the supply chain. Oluoch emphasized the need for Kenya to explore new markets to reduce reliance on traditional ones and enhance value addition in the tea sector to broaden the export base. The discussion touched on the importance of boosting local consumption of tea to complement export efforts. Oluoch stressed the potential for Kenya to tap into the growing global demand for green and health-driven teas by diversifying its offerings. She also highlighted the opportunities presented by the African Continental Free Trade Area, where Kenya could carve out a niche for its tea products. Moreover, Oluoch underscored the significance of quality control to ensure that Kenyan tea maintains high standards and remains competitive in the global market. Addressing sustainability and climate concerns, Oluoch outlined measures to enhance the quality of tea production while safeguarding farmers' livelihoods. By enforcing strict quality standards, producers can not only improve the value of tea but also enhance farmers' incomes by paying higher prices for top-quality green leaf. Additionally, promoting sustainable practices and adhering to recommended growing altitudes can help mitigate the impact of climate change on tea cultivation zones. In conclusion, Kenya's tea industry stands at a critical juncture, with significant growth potential but also pressing challenges that need to be addressed. By embracing market diversification, quality enhancement, and sustainability practices, Kenya can solidify its position as a key player in the global tea market while ensuring the well-being of its tea farmers and the long-term viability of tea production.