Justus Ondari
2 November 2009
Nairobi — The country expects to earn up to Sh67 billion from tea exports this year surpassing its 2008 earnings.
However, the estimated increase in earnings from last year's Sh62 billion comes when projections are showing that the country's total tea production will drop by 6-7 per cent in 2009 compared to last year.
According to the industry regulator, Tea Board of Kenya, the crop's production will fall from 345 million kilogrammes recorded in 2008 to 325 million kilogrammes this year.
"Given that we have hit the Sh50 billion mark by the third quarter, we expect to earn between Sh66 billion and Sh67 billion this year," Tea Board of Kenya managing director Sicily Kariuki told the Nation on Monday.
High prices
She attributed this year's high earnings to relatively higher prices coupled with favourable exchange rates.
Declining production in countries like Sri Lanka and India, which registered drops of 18.4 per cent and 0.7 per cent respectively between January and August this year, further boosted the Kenya's case.
This saw Kenya exporting 256 million kilogrammes of tea between January and September this year valued at Sh50.3 billion compared to 287 million kilogrammes worth Sh45.1 billion exported in the same period last year.
Prolonged drought especially in the east of Rift Valley - Kiambu, Murang'a, Nyeri and Embu - led to a 34 per cent drop in production recorded in the nine months in 2008 to 67.7 million kilogrammes this year.
Onset of rains
West of Rift Valley, however, recorded a production increase of 4 per cent to 141.7 million kilogrammes over the same period last year.
But with the onset of rains, production is expected to pick up after being affected by the prolonged dry weather conditions.
"We are already seeing signs of recovery," Ms Kariuki said of an industry, which earned Sh62 billion from 369 million kilogrammes of tea in 2007.
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