Delegation members. PHOTO/UGC.
By OUR CORRESPONDENT
newshub@eyewitness.africa
The Cabinet Secretary for Agriculture and Livestock, Mutahi Kagwe, recently engaged an Iranian business delegation to discuss the possibility of reopening the tea trade between the two countries.
Mr Kagwe said the move is part of Kenya’s broader strategy to strengthen bilateral ties between Iran and the broader Middle Eastern and Central Asian regions and ensure that its high-quality tea continues to reach global markets.
The CS was who accompanied by key local tea stakeholders, including the Chairman of the Kenya Tea Development Agency (KTDA), Mr. Chege Kirundi, and CEO Mr. Wilson Muthaura, Kagwe met with the Iranian delegation to discuss trade relations and the potential for a mutually beneficial partnership.
Also present during the meeting was Kenya’s Ambassador to the UAE, Mr. Milimo Nganga, who further underscored Kenya’s commitment to expanding its trade relations with the broader Middle Eastern and Central Asian regions.
The trade ban against Iran, imposed by the United States and several Western countries, has been a significant barrier to the country’s access to global markets.
These sanctions, which were particularly stringent after the 2015 nuclear agreement, restricted Iran’s ability to import certain goods, including agricultural products such as tea.
The situation worsened following the re-imposition of U.S. sanctions in 2018 under the “maximum pressure” campaign, which targeted Iran’s economy, including trade in critical sectors.
For several years, these sanctions severely curtailed Iran’s ability to engage in international trade, thereby affecting its access to foreign markets for commodities like tea.
However, as diplomatic tensions have eased and certain restrictions have been lifted, Iran has started looking for new trade partners to rebuild its economy.
The reopening of tea trade with countries like Kenya could have a transformative effect on the Iranian market, which has long been a significant consumer of tea.
Iran has one of the highest per capita tea consumption rates in the world, with tea being a staple in Iranian culture. The demand for tea is robust, and historically, Iran has relied on imports to satisfy this demand.
The Iranian market is particularly keen on high-quality black tea, which is sourced from countries like India, Sri Lanka, and Kenya. Prior to the sanctions, Kenya was one of the largest exporters of tea to Iran, with Kenyan tea being highly regarded for its rich flavour and superior quality.
Kenya, as the world’s leading exporter of black tea, produces more than 400 million kilogrammes of tea annually. The Kenyan tea industry supports over six million people, including farmers, processors, and exporters.
The majority of Kenya’s tea exports go to traditional markets in the United Kingdom, Russia, and the Middle East. The potential reopening of the Iranian market represents a huge opportunity for Kenyan tea producers to expand their reach, particularly given Iran’s historical preference for Kenyan tea.
The reopening of the tea trade between Kenya and Iran would be a game-changer, particularly for Kenyan tea farmers and the broader tea value chain.
As Mr. Kagwe highlighted in the meeting with the Iranian delegation, re-access to Iran’s robust market could increase demand for Kenyan tea, thus providing a major boost to Kenya’s export earnings.
The Kenyan tea industry, already a cornerstone of the country’s agricultural sector, could benefit from both short-term sales and long-term growth in the region.
Furthermore, this move would not only strengthen Kenya-Iran bilateral relations but also offer opportunities for regional trade expansion across the broader Middle Eastern and Central Asian markets.
Iran, with its strategic position in the region, could serve as a gateway for Kenyan tea to penetrate new markets. This, in turn, could open avenues for other agricultural exports from Kenya, enhancing overall trade between the two countries.
For Kenya, which has faced challenges in diversifying its markets for tea, Iran’s market presents a critical opportunity. Additionally, the move aligns with Kenya’s strategic vision of improving trade relations with nations in the Middle East, a region with growing demand for high-quality food products.
The reopening of the Kenyan tea trade to Iran is not merely an economic opportunity; it represents a broader diplomatic effort to foster regional cooperation and enhance Kenya’s standing as a leader in agricultural exports.
Strengthening bilateral relations with Iran could provide Kenya with increased influence in the Middle East and Central Asia, both of which are important regions for trade and investment.
Moreover, the move would signal Kenya’s commitment to fostering a more diversified and resilient export market for its agricultural products. As the world recovers from the disruptions caused by the COVID-19 pandemic, such trade agreements are becoming increasingly vital for countries looking to expand their presence in global markets.
As Kenya and Iran explore new trade avenues, particularly in the tea sector, the potential for growth and prosperity is immense. The reopening of tea exports to Iran could bolster Kenya’s position as the world’s leading exporter of black tea, while also serving as a bridge for further cooperation between the two countries.
The next steps in the dialogue between Kenyan officials and Iranian business leaders will likely determine the future trajectory of this important trade relationship, with both nations poised to benefit from an expanded market presence in the Middle East and beyond.
