Kenya's orthodox tea exports affected by low oil prices
Sales of Kenyan specialty tea have slumped precipitously over the last year due to reduced demand from oil-rich countries following the collapse of the price of oil. Data from the Kenya Tea Development Agency suggests that the African country earned about $2 million from orthodox tea exports, which is over 10% lower than during the previous 12-month period. The agency noted a lower demand from big importers like Russia, Iran and Kazakhstan, all major oil-producing countries facing falling revenues from oil. Also, the fact that Kenya fixes the price of orthodox tea means it has been less competitive against Sri Lankan tea, which sells for around 30% less. Last year the country produced 427,000 kilograms of specialty tea, which is about a third less than the previous year.