Tea export at the Mombasa Tea Auction remains unshaken despite growing fears of decline in sales after US renewed trade sanctions against Iran, one of Kenya’s tea markets in the Middle East.
East Africa Tea Trade Association Managing director Edward Mudibo dispelled the fears about the sanctions, saying tea is not among commodities listed for import and export ban by US.
“The embargo is not really on tea but on other commodities such as oil and weapons, so tea will continue to be exported to Iran, though the only challenge now is on which bank will handle financial transactions,” he said.
Mudibo said the sector is experiencing a remarkable market growth despite slowdown during the months of May owing to severe climatic conditions. Iran is ranked top five Kenyan tea consumers in the world and major buyer at the Mombasa tea Auction.
“By the end of March, prices of tea had dropped by average price by $2 (Sh202.28), due to erratic weather patterns but by end of April the sector started experiencing growth, increasing by a $2.15 (Sh217.45) following return of good rains,” said Mudibo.
In 2012, Kenya produced about 350 million kilogramme but the volumes have increased substantially to 490 million kilos and the agency projects 500 million kg by the end of the year. Iran leads as a major tea consumer at 38 per cent followed by Egypt, Pakistan, UK, UAE and Sudan.
