Senate to Resolve Sudan-Kenya Export Stalemate

By Harrison Kivisu

Email, thecoastnewspaper@gmail.com

The Senate committee on trade and industrialization has pledged to initiate consultations to resolve Kenya-Sudan export sanctions that have negatively affected the Kenyan tea sub-sector.

The latest market shock statistics show that a total of 27,000 kilograms of Kenyan tea is stuck in the high seas and godowns following the Sudan’s directive, thus, sinking billions of Kenyans revenues.

The committee members who were on a fact finding mission at the East Africa Tea Association (EATA) on Tuesday, March 25, 2025 promised to lead talks with relevant ministries to end the problem.

The committee members were told tea exports are threatened by over taxation, shrinking foreign markets, geopolitical effects and global competition.

Senate trade committee chairman Issa Juma Boy regretted that Kenya has lost billions of revenue as a result of the sanction on Kenyan exports by Sudan.

“We will make a statement and engage the relevant authorities to ensure we look for a solution affecting transportation of tea to Sudan.We’re losing a lot as a country in terms of revenue earnings after the sanctions were issued.”

On her part Esther Okenyuri, deputy chair of the trade committee said the Senate and the ministry lead talks that would resolve the stalemate between the two countries.

“We will take that matter to parliament to ensure where legal loopholes are addressed, we also want to lead talks with the ministry to see how the Sudan problem can be solved,” she said.

Uasin Gishu Senator Jackson Mandago urges Kenyans to embrace tea drinking culture to boost local consumption.

Kenya’s tea consumption only at nine per cent with the rest bulk tea left for export.

To diversify markets, EATTA managing director George Omuga says the association will introduce the sale of Orthodox tea at the Tea Auction beginning June 2025, noting it will boost Kenya’s revenue earnings.

Kenya tea is faced by a myriad of challenges including high cost of value addition, climate change and fluctuating global markets.

According to Omuga, the association is now banking on proposals presented to the senate committee for resolving.

“We are asking the government to create a good value addition environment. We are also pleading with the government to sign bilateral agreements to create new Africa markets.”

Kenya will join the league of Sri-Lanka in the Orthodox tea sales which leads with 31 percent of the tea sold through auction. EATA is now banking Kenya Export Promotion Branding Agency (KEPROBA) to establish new markets.

“We are focusing on Middle East and Africa markets to expand our reach, the Middle East market has historically been good because most Muslim dominated countries drink a lot of tea,” he added.

Kenya’s 2024 tea earnings grew by nine per cent to post Ksh215.21 billion out of which Ksh181.69 billion was earned from exports.

The report prepared by the Tea Board of Kenya (TBK) indicates that the export earnings recorded improved performance of 1% (Ksh1.12 billion) to stand at Ksh181.69 billion from Ksh180.57 billion recorded in 2023.

Higher export earnings were attributed to increased export volume by 14 per cent (71.59 million kilograms) from 522.92 million kilograms recorded in 2023 to 594.50 million kilograms.

However, compared to the year 2023, the export prices and the exchange rate to the US dollar were less favorable to the earnings.