Industry and Trade Cabinet Secretary Peter Munya says his ministry is finalizing a policy that address value addition challenges that agro-processors face in a bid to expand the export portfolio.
According to Munya, this will ensure an increase in farmers’ income and bulk export of produce such as tea and coffee.
Speaking during the launch of in the Kenyan market, the CS said establishment of an Export Commodity Exchange is underway.
Much of Kenya’s top foreign exchange earning produce such as tea and coffee are shipped out unprocessed.
Trade ministry officials say 70 percent of tea exported through the Mombasa Tea Auction is in bulk form. Last year, the country produced 439.8 million tones of tea and 40.8 million tones of coffee.
According to Munya, the value addition policy will highlight strategies to rectify the bulk export of tea and coffee which has suppressed farmers income.
This comes on the backdrop of proposals by legislators to ban raw export of coffee in a bid to force local millers export finished products.
Establishment of the Export Commodity Exchange is similarly waiting the cabinet’s nod to include agriculture and minerals. This comes as Cofftea embarks on sale of premium tea in the local market as Managing Director Siddig Idris explores directing sourcing from farmers.