Kenya battling to get tea into the US market
Tea industry players have called for a review of the African Growth Opportunity Act to allow them access to the American market.
Interim head of the tea directorate Samuel Ogola said they were negotiating to have Kenyan tea incorporated as one of the commodities for export to the market.
Ogola said America is a high potential market for Kenyan tea but local traders can only benefit if they fulfill Agoa conditions.
Agoa is a nonreciprocal trade preference program that provides imports of certain products from sub-Saharan African countries to the US.
Coffee, which formed the base of pre-Agoa exports, has continued to do well but tea has declined.
Nuts and cut flowers have recorded the fastest growth with an average of 50 per cent annually.
Kenya is only able to export 12 line products against 6,500 products provided for under the Agoa trade framework.
The 2017 Economic Survey says export revenue from the Article of appeal and clothing accessories, mostly exported to the US under the Agoa agreement, have increased to Sh30.7 billion from Sh28.2 billion in 2016.
Kenya's top tea market destination last year were Pakistan, Egypt, UK, United Arab Emirates, Sudan and Russia respectively.
Ogola noted that while tea export earnings increased to Sh129 billion from Sh120 billion in 2016, export volumes decreased by 13 per cent.
“Kenya tea export volume was 415 million kilograms compared to 480 million kgs in 2016. This decline is attributed to lower supply,” Ogola said during the release of the 2017 tea industry performance report on Monday.
Edward Mudibo, the East Africa Tea Trade Association CEO said the US market is big enough to suck up all tea exports.
“Our desire is to expand markets to ensure our tea is globally felt,” Mudibo said.
- AGOA.info note: tea is duty-free into the United States if exported by an AGOA beneficiary country: the relevant tariff lines (under HTS0902) are either MFN zero-rated or AGOA zero-rated. However, agricultural and food products are usually required to comply with certain SPS requirements. View some of the available resources on the subject here on AGOA.info at this link.
Read related news articles
Kenya: 4th AmCham business summit to advocate for enhanced partnership and investment In US-East Africa trade
The fourth edition of the regional American Chamber of Commerce Kenya (AmCham) Business Summit, the premier platform for strengthening bilateral trade and investment between the United States, Kenya, and East Africa is set to be held on April 24–25, 2024, in Nairobi, Kenya. Kenya’s President William Ruto is confirmed as Chief Guest, leading a government delegation to the summit that aims to expand commercial opportunities and markets....
19 March 2024
US President Biden to welcome Kenyan President Ruto to the White House in May
President Joe Biden plans to welcome Kenyan President William Ruto to the White House in May, hosting a state visit after reneging on his promise to visit Africa last year. White House press secretary Karine Jean-Pierre said Friday that the visit set for May 23 will mark the 60th anniversary of U.S.-Kenya diplomatic relations and "celebrate a partnership that is delivering for the people" of both countries while affirming "our strategic...
18 February 2024
'Nigeria missing as Kenya, Ghana tap AGOA opportunities to boost foreign exchange earnings'
Africa’s biggest economy is still failing to tap the opportunities that the African Growth and Opportunity Act (AGOA) present to boost its foreign exchange, amid acute dollar shortages. The AGOA has been on for over twenty-three years as it was enacted in 2020. In 2015, the program was modernised and extended to 2025, implying that there are only about 15 months before the window closes. Some countries have taken advantage of the AGOA more...
05 February 2024
Kenya-US to deepen ICT, apparel and agriculture trade
Kenya and United States are in talks to identify areas of interest in information communication technology (ICT) sector that can interest US firms. A meeting between The US Ambassador to Kenya, Megan Whitman, and the Cabinet Secretary for Investments, Trade, and Industry Rebecca Miano, the states sought cooperation in six key areas. The meeting laid the groundwork for an enhanced collaboration between Kenya and the United States in...
09 November 2023
Kenya President Ruto joins US-Kenya business roadshow in San Francisco
Kenya's President William Ruto will address leading US technology companies and investors on Friday at the US-Kenya Business Roadshow in San Francisco organised by the American government’s Prosper Africa initiative. The roadshow - also co-organised by the US Embassy in Nairobi - highlights the business and investment potential in Kenya’s booming tech sector, a statement from the US Embassy in Kenya said. The event is part of a...
15 September 2023
AGOA boosts Kenya's textile exports to US, sector sees 7.2% growth
The African Growth and Opportunity Act (AGOA) has benefitted Kenya’s textile and apparel sector, leading to monthly exports to the tune of Sh4.5 billion, or Sh150 million per day, last year, according to a study by London-based Institute of Economic Affairs (IEA). The programme has had a positive impact on the country’s export-processing zones (EPZs), especially in the textile and garment sector. Kenya is the second-largest exporter of...
08 August 2023
Kenya's president meets US delegates on trade and investments
Kenyan President William Ruto has today held talks with US Trade Representative, Ambassador Katherine Tai. The discussions were based on US trade policy. Ruto said that the country is ready to strengthen the already existing relations between the two nations. "We will stretch our ties beyond the African Growth and Opportunity Act (AGOA) in the wake of advanced technology and climate change, for the full exploitation of our trade potential,"...
19 July 2023
US trade rep in Nairobi as Kenya's solo deals worry the EAC block [incl. Readouts]
The US trade representative is in Nairobi to co-lead a meeting that seeks Kenya's partnership in a fresh trade deal. The Trade and Investment Framework Agreement (TIFA Council) is pursuing various agreements even as regional peers express concern over Kenya's solo approach. Yesterday, Trade Representative, Katherine Tai met patron circle members of the American Chamber of Commerce-Kenya (AmCham Kenya) ahead of today's...
17 July 2023
Opinion | Why AGOA is vital for South African food exporters
South Africa currently enjoys valuable preferential access to mainly traditional markets – the EU, UK, US, Africa and some South American countries (under Mercosur). In the equally lucrative and fast-growing South and East Asian region, only one agreement potentially exists - a preferential trade agreement with India that remains under negotiation. No trade agreements exist with Middle Eastern states. However, government...
30 May 2023
The Lady R and AGOA — take a lesson from Warren Buffet and make a case for the intrinsic value of SA Inc
Our agricultural sector’s relationship with the US is a two-way stream that is mutually beneficial based on intrinsic value. When preparing for the Agoa summit, this is the narrative we should be pushing. The comments by US Ambassador Reuben Brigety regarding theLady R shipments sent the South African currency plummeting and inflamed fears about South Africa’s future trade relations with the US. This is a high-stakes issue for...
24 May 2023
US boosts Kenya apparel industry with $55m in new trade deals
The US is giving Kenya $55 million for expansion of export processing zones in a move that will boost Nairobi’s apparel exports. US initiative Prosper Africa and the US Embassy announced the funding at the launch of the US-Kenya Business Roadshow held on April 25 in New York. The announcement was part of the commitments made by President Joe Biden at the US-Africa Leaders’ Summit last year. The funds will be channelled under USAid and...
29 April 2023