Traders feel pinch of Sudan tea export ban

Tea traders have appealed to the government to negotiate a one-month window to clear tea worth Sh1.3 billion that was destined for Sudan before it imposed a ban on Kenyan tea a fortnight ago.

Sudan’s military regime ="https://www.standardmedia.co.ke/sports/amp/business/2001513858/sudan-bans-importation-of-kenyan-products-for-hosting-rsf">banned Kenyan tea< and coffee from its territory in protest against the Kenya Kwanza regime’s move to play host to its rival, the paramilitary Rapid Support Forces (RSF) in Nairobi, from where it declared a parallel government in the war-torn nation.

Yesterday, the East Africa Tea Trade Association (EATTA), which runs the Mombasa Tea Auction, said 27 tonnes of tea are stuck on the high seas, in warehouses, and at the port of Sudan following the ban.

EATTA Chairman Arthur Sewe told the Senate Committee on Trade and Industrialisation that it would require at least 30 days to clear all the 207 containers of tea destined for Sudan.

“The Sudan ban is a challenge. We appeal to the government for a one-month export window to clear tea in the warehouses and those that have reached the port of Sudan,” said Sewe.

He said the 27 tonnes of tea bought at the auction fit 207 40-foot containers. 

The Senate committee, chaired by Kwale Senator Issa Juma, said they will present the petition before the Foreign Affairs Cabinet Secretary in a bid to secure one of Kenya’s major export markets.

Mr Juma said the committee will summon Foreign Affairs CS to explain the steps taken to resolve the current standoff with Khartoum.

“We want the minister of Foreign Affairs to appear before the Senate to tell us the steps taken towards resolving the crisis,” he said.

Nominated Senator Esther Okenyuri said the export ban will ="https://www.standardmedia.co.ke/business/business/article/2001513864/sh13b-tea-stuck-at-port-after-sudan-bans-kenya-imports">affect farmers’ pay<, hence the need to resolve the issue quickly.

“Sudan declining our tea is a big thing. We need them to go and talk as governments to solve the gridlock,” said Ms Okenyuri.

Tea Buyers Association Chairman Peter Kimanga stressed the need for value addition of Kenyan tea as opposed to selling in bulk.

Mr Kimanga said that the bottlenecks in value addition have seen the Kenyan market continue to shrink.

“Branding is expensive in Kenya, which makes our tea expensive and unfavourable for our tea in the world. As long as we sell in bulk, our market will shrink. We need value addition,” he said.

He said most investors in the packaging business do it in Europe because the Kenyan government is more focused on taxes at the expense of farmers. Mr Kimanga noted Pakistan exports Kenyan tea to Europe and America, while Tanzania does not charge VAT on locally manufactured tea.