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 Agriculture and Livestock Development CS Mutahi Kagwe, and Pakistan’s High Commissioner to Kenya Ibrah Hussain Khan.
Also present at the meeting was Willy Mutai, CEO of the Tea Board of Kenya, who emphasised the importance of the Pakistani market for Kenyan tea.
With tea fetching an average Sh339 per kilogramme, tea exports to Pakistan fetched Sh70 billion out of the total Sh181.69 billion made from tea exports, making the country a top destination for Kenyan tea.
“Last year alone, Kenya exported 206 million kilogrammes of tea to Pakistan. This was a slight drop from 209 million kilogrammes the year before and 212 million kilogrammes in 2021,” Mutai said.
Kagwe acknowledged Pakistan as a key trading partner and praised the existing cooperation but raised critical issues affecting the local tea industry, especially the role of the Pakistan Tea Association in influencing global tea prices.
“When the Pakistan Tea Association (PTA) issues circulars, it unintentionally sets the benchmark for other markets, creating price distortions across the entire supply chain”.
“Our farmers are complaining. We want market forces to play out freely,” the CS said.
PTA plays a significant role in shaping supply and demand dynamics of tea because of the country’s position as a top tea consumer.
In 2023, the association pushed for tea to be designated as an essential good which unlocked stuck shipments and led to increased sales at the Mombasa auction.
It also advises the Pakistani government on policies that ease or restrict imports which affects how much tea the country buys, affecting prices in supplier markets.
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 said.
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,” Khan said.
“All concerns raised by Kenya are valid and will be addressed with urgency,” he added.
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, which is a collaborative exchange of resources, technology and expertise among developing countries.
"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.
Pakistanis consume about 1.5kgs of tea per person annually with the national consumption estimated at about 183,770 tonnes annually. Other top buyers of Kenyan tea include Egypt with 86.90 million kilogrammes valued at Sh23.96 billion last year, the UK with 57.44 million kilogrammes valued at Sh16.99 billion, and the United Arabs Emirates (UAE) that bought 30.50 million kilogrammes worth Sh10.27 billion.
As local farmers raised their production from 522.92 kilogrammes in 2023 to 594.50 million kilogrammes in 2024, the produce faced various challenges in the global market including the reduction of exports to Sudan by 12 per cent due to conflicts.
Disruptions along the Red Sea shipping route caused by attacks on vessels forced shipping lines to use longer and costlier routes around the African continent, further affecting the sector.
