Kazakhstan proposes Kenyan tea and coffee hub to boost exports into Central Asia 

Kazakhstan offers tax incentives to attract Kenyan tea and coffee exporters amid shifting global trade dynamics.

KENYA – Kazakhstan’s ambassador to Kenya, Barlybay Sadykov, has proposed the establishment of a Kenyan tea and coffee hub in Kazakhstan, outlining incentives aimed at attracting Kenyan exporters and traders into the Central Asian market. 

Speaking during a meeting with the Kenya National Chamber of Commerce and Industry, Sadykov said Kazakhstan was prepared to support Kenyan producers seeking new markets. He proposed the exemption of green coffee beans from import taxes to encourage value addition within Kazakhstan. 

“The exemption of green coffee beans from import duties will allow Kenyan exporters to ship raw coffee for roasting, packaging and redistribution in Kazakhstan and neighbouring markets,” Sadykov said. 

He added that Kazakhstan offers strong commercial potential for Kenyan coffee, noting the country’s high retail prices. “A single cup of coffee can sell for around $5, which presents attractive margins for producers willing to explore this market,” he said. 

The proposal comes at a time when Kenya’s tea sector is facing disruptions in two key export destinations. Sudan, historically one of the largest buyers of Kenyan tea, has effectively exited the export market following a diplomatic fallout linked to Kenya’s stance on Sudan’s internal conflict between the armed forces and the Rapid Support Forces. 

The ban on Kenyan goods has forced exporters to redirect shipments and absorb losses from a market that previously accounted for significant volumes traded through the Mombasa auction. 

Iran, another major destination for Kenyan tea, also suspended imports after a quality and fraud scandal involving mislabelled low-grade tea sold as premium Kenyan produce. 

Unlike Sudan and Iran, where political and regulatory shocks disrupted trade, Kazakhstan is positioning itself as a commercially driven partner seeking structured, long-term supply chains for Kenyan beverages in Central Asia. 

By proposing a tea and coffee hub, Kazakhstan is offering to serve as a regional gateway for Kenyan products, enabling access to neighbouring markets through local processing, packaging and redistribution networks. 

According to trade data, Kazakhstan’s main tea suppliers are Kenya, India, China and Russia, which together accounted for about 11,700 tonnes of the country’s total tea imports of 12,000 tonnes in 2023. The country also sources tea from Vietnam, Iran, Sri Lanka and Georgia. 

Domestic sales of coffee and tea in Kazakhstan fell by nearly 30% in the first five months of 2024 compared with the same period in 2023.  

However, over the past decade, coffee imports have expanded 3.8 times, while tea imports have remained largely unchanged, highlighting shifting consumer trends and emerging opportunities for Kenyan exporters. 

 

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