Tea, originating from China, has become integral to half the global population's daily rituals. Recently, Kenya's President Ruto engaged with Fuzhou Benny Tea Industries to boost exports of Kenyan teas to China. Key Kenyan stakeholders discussed new initiatives, including the allowance for tea factories to bypass intermediaries in international sales. Although Kenya, the leading black tea exporter, aims to grow its market, concerns exist regarding disruptions from potential tax-free Chinese packaging materials under a new agreement, which might affect local producers.
"We will soon be allowing tea factories to sell their teas directly to the international markets without intermediaries," Mutahi Kagwe said, highlighting a pivotal change for Kenya's tea sector.
Benny Tea Industries will be making $100 million worth of investments in Kenya, enhancing export capabilities for both countries and encouraging bilateral trade.
The agreement would allow Chinese firms, such as Benny Tea, to export tea packaging material from China to Kenya tax-free, potentially disrupting local suppliers.
Kenya's tea industry accounted for nearly 158 billion Ksh in annual revenues, significantly supporting over 750,000 farmers, as noted by the Kenya Tea Board.
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