- Economic and political turmoil in top export markets signal further price declines.
The price of Kenyan tea could dip further from the current year-to-date lows following the economic and political turmoil in the top export markets, which has seen the demand for beverage decline.
Pakistan, a major buyer of the Kenyan tea, has seen its currency plunge by more than 20 percent in the last one year against the dollar with inflation rising to nine percent, impacting negatively on purchasing power, according to Pakistan’s National Economic Council.
The council also estimates that the economy will slow down to 2.4 percent and inflation to rise to 13 percent.
They are not expecting growth to recover over the next two years.
“Pakistan remains our number one buyer of tea but overreliance on the market is taking a toll on our produce,” said Peter Kimanga, East Africa Tea Traders Association chairperson.
Exports to Sudan and Iran have also slowed down following the recent political shocks in the two key buyers of Kenyan tea.