Kenya, Pakistan strengthen tea trade relations amid concerns over pricing, branding, and market practices 

KENYA – Kenya and Pakistan have reaffirmed their commitment to strengthening bilateral trade in the tea sector, while also addressing pressing concerns around market manipulation, branding integrity, and export standards.  

This follows 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. 

Tea remains a significant export commodity for Kenya, with the country earning KES 181.69 billion (US$1.4B) from tea exports in 2023. Out of this, exports to Pakistan accounted for KES 70 billion (US$540.54M), making it Kenya’s top tea destination.  

In the same period, Kenya exported 206 million kilogrammes of tea to Pakistan, down slightly from 209 million kilogrammes in 2022 and 212 million kilogrammes in 2021. 

While acknowledging Pakistan’s importance as a key trade partner, CS Kagwe raised concerns over the influence of the Pakistan Tea Association (PTA) on global tea prices. 

“When the PTA issues circulars, it unintentionally sets the benchmark for other markets, creating distortions across the entire supply chain,” said Kagwe. He emphasized the need for free market forces to determine pricing, noting growing dissatisfaction among Kenyan farmers. 

The PTA plays a crucial role in shaping global demand due to Pakistan’s status as one of the world’s largest tea consumers, with an estimated national consumption of 183,770 tonnes annually—about 1.5 kilograms per person.  

In 2023, the PTA successfully lobbied for tea to be declared an essential good, easing import bottlenecks and boosting sales at the Mombasa tea auction. 

Kenya also expressed concern over the branding of blended teas, where lower-quality products are mixed with Kenyan tea and marketed under Kenyan labels. “If you must blend, do not use Kenyan names. It is misleading and harmful to our farmers,” Kagwe stated. 

In response, High Commissioner Khan assured that Pakistan remains committed to safeguarding the Kenyan tea brand. “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, adding that all concerns would be urgently addressed. 

Shelf life standards also featured in the discussions. While Pakistan supports a one-year shelf life, Kenya is advocating for an 18-month standard to accommodate supply chain flexibility. 

Other major buyers of Kenyan tea include Egypt (86.90 million kilogrammes), the UK (57.44 million kilogrammes), and the UAE (30.50 million kilogrammes).  

Despite increased production to 594.50 million kilogrammes in 2024 from 522.92 million kilogrammes in 2023, Kenya’s tea exports have faced challenges, including a 12 percent reduction to Sudan due to ongoing conflict. 

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