Kericho, Bomet County tea factories earn KShs 15.85b

Tea factories in Kericho and Bomet County earned a total of KShs 15.85 billion from 69.325 million kgs made tea sales for the year ended June 2019, out of which KShs 10B will be paid out to the farmers as initial and final payments.

Tea farmers in Bomet County have earned a total net revenue of KShs 6.153 billion from 42.675million kgs Made Tea. Out of this, the farmers have already received KShs 3.04billion, as initial payment, and the remaining KShs 3.11 billion will be paid at the end of this month.

Tea farmers in Kericho County have earned a total of Sh3.824 billion this year from 26.65 million kgs of Made Tea. Farmers have already earned KShs 1.86 billion, as monthly initial payment, and the remaining Sh1.96 billion will be paid to them at the end of October, 2019.

This performance has been realized at a time when most of tea producing countries have registered increased production while importing markets have experienced political and economic challenges. Global tea production stands at 5.8 billion kilos while demand is at 5.6 billion kilos resulting in a 200 million kilos surplus.

Pakistan, Egypt, UK, UAE and Sudan remain Kenya’s key export destinations for the black CTC tea type processed in Kenya.

These countries have had significant currency devaluation due to political/economic challenges with Sudan, Pakistan, Egypt and UK registering 70%, 50%, 20 and 20%respectively.

Tea being a commodity traded in US Dollars, the currency devaluation reduces the purchasing power of the consuming population. Resumption of economic sanctions by the United States of America on Iran cut off a substantial market for our teas.

“We as farmers and elected leaders from the two counties are working towards mitigating the challenges facing the tea sector and we appeal to the government and the political fraternity to support us. Key among the challenges facing this region are Mangirito and poor road network. These have a great impact on leaf quality and consequently quality of made tea offered to the market and also cost of leaf collection. We urge the political fraternity and other interested parties not to politicize tea business but understand the dynamics driving the sector,” Kapkoros Board Chairman, Mr Eric Langat said.

Kenya is the leading exporter of black CTC teas in the world accounting for about 23 percent of the global exports with KTDA accounting for about 13 percent.

  

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