China-Kenya Tea Trade Centre officially launched in Shanghai

Benjamin Muriuki
By Benjamin Muriuki May 16, 2024 11:36 (EAT)
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The China-Kenya Tea Trade Centre was officially launched on Wednesday in Shanghai in a move seeking to boost bilateral trade and strengthen the tea industries of both nations. 

Kenya's Agriculture Cabinet Secretary Mithika Linturi inaugurated the centre marking a significant step in enhancing economic ties and cooperation between Kenya and China.

In his address at the launch, CS Linturi highlighted that Kenya, the third-largest tea producer globally after China and India, generates approximately USD 1.5 billion (Ksh.196 billion) annually from its tea industry. 

He added that this sector supports the livelihoods of over 750,000 farmers and impacts around 6.5 million people both directly and indirectly. The tea industry is crucial for rural development in Kenya, where tea growing and manufacturing are predominantly based.

China's tea industry, on the other hand, supports the livelihoods of 70 million people and contributes about USD 47 billion annually to its economy. 

"In both countries, the tea industry supports the development of the rural areas as tea growing and manufacturing are rural based enterprises spread both countries.

"Historically both countries are connected through the Development and Industrialization of International Tea Trade for belt and Road countries, which has served to enhance our cooperation," said Linturi.

The tea trade relationship between Kenya and China has a long history, with Kenya receiving its first tea variety from China in 1904.

Over the last decade, China's interest in importing Kenyan orthodox and specialty teas has increased significantly. The rising demand for CTC (Crush, Tear, Curl) teas, influenced by Western tastes, has led China to import black CTC tea, instant teas, and other orthodox teas from Kenya, India, and Sri Lanka.

The launch of the China-Kenya Tea Trade Center is expected to benefit Kenyan smallholder farmers by providing them with modern equipment and technology transfer, thereby improving their productivity and livelihoods.

The ambitious goal is to trade at least 5 million kilos of tea annually between the two partners within the next three years.

Linturi asserted that the Ministry of Agriculture, along with the Tea Board of Kenya, will ensure that Kenyan tea sold through this cooperation bears the "Produce of Kenya" mark, enhancing brand recognition and visibility among Chinese consumers. 

Additionally, Benny Tea is encouraged to establish a value addition facility in Mombasa, aimed at packing and exporting teas to markets beyond China, leveraging Kenya's favorable trade terms with many countries in Africa, North America, and Europe.

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