Industry

Kenya's tea sector struggling against competitors

Feeling the heat
Feeling the heat

Kenya, the world's largest tea producer, is experiencing pressure from other tea-producing nations for its biggest crop: low-quality black tea. Despite a 50% growth in output for the first quarter of 2010 and improved prices, the country is struggling to diversify into the lucrative orthodox tea market and is hampered by shifting international trade policies. Most of Kenya's production consists of low-quality dust and fannings, mainly geared towards export markets in the UK, Pakistan and Egypt. Despite various incentives, the country is having troubles diversifying towards cultivation of orthodox tea. The African nation is also lacking a domestic market - it exports 95% of its 200 million kilogram production - making it vulnerable against more advantageous trade deals between other consuming and producing nations.

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