By Dan Bolton
China’s growing thirst for black and purple tea from Kenya has led to a sizeable 5-million kilo-per-year purchasing agreement valued at $70 million annually.
Kenyan Cabinet Secretary Mwangi Kiunjuri said the three-year deal “is expected to increase to more than 30 million kilograms annually valued at an estimated $400 million (KSH40 billion) shillings in the next 10 years.”
A seven-member delegation from China, touring Kenya in late August and September, signed a memorandum of understanding with five specialty tea processing factories, according to Xinhua Net.
Kiunjuri, who heads Kenya’s ministry of agriculture, livestock, and fisheries, said that Kenya is intent on forging a close bilateral trade relationship with China for whole leaf and premium CTC (cut, tea, curl) teas including purple tea.
To assist Kenya, Fuzhou Benny Tea Industry Company Ltd., will provide new machinery to the processing factories along with tea-making expertise to craft teas suited to China’s market. The company will also provide warehousing and marketing support in China.
An indication that China wants to draw closer to Kenya is the announcement that the warehouse will serve any Kenyan factory seeking to export its tea to China, said Zhang Chaobin, chairman of Fuzhou Ltd.
Kenyan teas will be listed for auction at wholesale prices on China’s digital platforms, greatly enhancing distribution of a type of tea new to Asian tea drinkers.
The delegation of officials with the China National Forest Industry Federation Ecological Tea and Coffee Branch are intent on developing strategies aimed at deepening trade in specialty tea, writes Xinhua. Zhang said that a vibrant Sino-Kenya trade in specialty tea will help fulfill key objectives of The Belt and Road Initiative.
“Our trade with Kenya in the specialty tea sector is complimentary. It will also boost friendship,” said Zhang.
Kiunjuri was especially keen on tapping the specialty market in China.
“We believe a partnership with Chinese companies will lead to growth of the purple tea market segment. It is our desire to pursue enhanced access to Chinese market for tea products,” said Kiunjuri.
Zhu Zhonghai, secretary general of the government branch said that high-quality specialty tea from Kenya will resonate with Chinese consumers, according to The Nation.