Sh1.3b tea stuck at port after Sudan bans Kenya imports

Kenyan tea traders are counting huge losses following the ="https://www.standardmedia.co.ke/business/business/article/2001513858/sudan-bans-importation-of-kenyan-products-for-hosting-rsf">ban on imports< by  Sudanese authorities.

The East African Tea Trade Association (EATTA) described the ban as critical as Sudan is ranked among the top five markets for the Mombasa-based tea auction.

The tea traders said the ban came during the holy month of Ramadhan when consumption of tea was at its highest in Sudan.

Yesterday, tea traders said some 207 containers with 400 bags each destined to Sudan were lying at the port of Mombasa while other teas were in warehouses, in the high seas and at the port in Sudan waiting for clearance.

The tea destined for Sudan that is affected by the ban is estimated at about Sh1.3 billion.

EATTA Managing Director George Omuga appealed to the government to urgently engage Sudan to allow buyers a window of at least one month to clear the teas already dispatched to that country to mitigate the impending losses to Kenyan traders and farmers.

On Thursday, Agriculture Cabinet Secretary ="https://www.standardmedia.co.ke/health/index.php/business/article/2001513712/kagwe-reports-rise-in-tea-export-earnings"> Mutahi Kagwe said Yesterday’s ban of Kenyan tea imports came as a retaliation by the Sudanese military leadership after Nairobi hosted rebels from the paramilitary Rapid Support Forces. 

Sudan’s Foreign ministry, loyal to army chief Abdel Fattah al-Burhan, immediately criticised Kenya for hosting the rebels at the Kenyatta International Convention Centre (KICC).

The move has since soured the diplomatic relations between Khartoum and Nairobi leading to yesterday’s ban of Kenyan tea imports to that country.

Other top markets are Egypt, United Kingdom, the United Arab Emirates and Yemen.

Tea Buyers Association Chairman Peter Kimanga said they have 207 containers of 40-foot waiting for shipment to Sudan while other teas are in warehouses, high seas or in Port Sudan.

“The ban of Kenya tea imports to Sudan is of a major concern to traders and farmers and we are asking the government to intervene,” added EATTA Chairman Arthur Sewe.

Omuga, who spoke in the auction hall flanked by tea buyers, said the buyers have running contracts and have teas lying at Port Sudan.

“Several containers of tea already dispatched destined to Sudan are in the high seas and huge stocks bought for Sudan market are still in the warehouses in Mombasa and cannot be shipped out due to this ban. Most of these teas are already in value added form at various stages of shipment,” Omuga noted.

The tea traders noted that the ban will result to unfathomable losses by buyers and will trickle down to producers and farmers.

“Sudan purchased specific grades of tea which are already committed and cannot be diverted to any other market destination,” said Omuga.

During his meeting with tea producers, buyers and brokers in Mombasa, Kagwe announced a raft of measures to improve tea production and export. He said an Agricultural Police Unit will be established to address green tea malpractices and enforce standards in the sector.

To boost the value of local tea, the CS said he would seek tax and duty waivers on packaging materials and machinery from the National Treasury.

Kagwe plans to establish a Tea Council to support all stakeholders and promote cooperation along the value chain.

The CS directed all tea producers to meet the minimum quality standards for Kenyan green leaves to combat malpractices.

“In this regard, the ministry shall publish the green leaf quality standard for all tea producers, and the Tea Board of Kenya shall deregister any stakeholders engaging in tea hawking,” Kagwe said.

The CS said all tea producers must adopt specific strategies to improve tea quality since prices are based on quality.

He said the government would enhance marketing and promotional activities to increase markets.

 Additional reporting by Willis Oketch