Kenya is pushing for tea barter trade in exchange for rice imports from Pakistan, as the country seeks to cushion the country's largest importer of its beverage in the aftermath of significant economic troubles in Islamabad caused by a currency shortage. Agricultural Cabinet Secretary Mithika Linturi is in Pakistan, where she will discuss the potential of Kenya to buy rice from Pakistan in return for tea from the Asian country. In this blog, we will discuss the latest notification on Kenya and Pakistan Trade.
Kenya is concerned that Pakistan's financial problems, which have hampered the tea trade at the Mombasa auction, would worsen in the coming months.
Tea sellers at the auction have been lobbying the government to allow barter trade on the two commodities in order for Pakistan-largest Kenya's tea customer to continue trading at the auction.
According to the East African Tea Trade Association, one of the topics that the Kenyan team will explore in Pakistan is procedures that can be put in place to promote barter trade.
Also, one of the topics to be discussed is barter trade on our tea and other vital commodities that we import from Pakistan. We welcome this agreement since it will benefit us given Pakistan's economic position," said Edward Mudibo, managing director of Eatta. Know about Import Data Kenya
The government intends to import 150,000 tonnes of rice through the Kenya National Trade Corporation. In view of Pakistan's ongoing economic problems, the barter trade will be the greatest answer," said Peter Kimanga, a tea dealer in Mombasa.
Njuguna Ndun'gu, Treasury Cabinet Secretary, told a House Committee a fortnight ago that the situation in Pakistan and Egypt would damage Kenya's economy this year because tea is one of the largest foreign exchange earners, and the two nations are the largest consumers of the beverage.
Already, the tea industry is feeling the effects of the two countries' current economic woes, as tea purchases at the Mombasa auction have dropped considerably.
According to Kenya Import Export Data, Tea exports to Egypt decreased 33% to 54 million kilograms in October of last year, while exports to Pakistan fell 13%.
ISLAMABAD: Pakistan and Kenya are preparing to undertake trade and cooperation talks, for which Kenya's agriculture minister has arrived in Pakistan.
According to sources who spoke with Profit, Kenya's agriculture minister will visit the Ministry of Commerce on Monday to discuss tea export and rice import.
According to the Kenya imports and exports data, bilateral trade between the two nations totaled $782 million last year, with $282 million in exports to Kenya. Pakistan now exports rice, pharmaceuticals, and textiles to the African country, while Nairobi imports tea and leather.
Due to the current economic crisis, Pakistani authorities, according to sources, will propose a barter trade system. According to them, Islamabad intends to export food and pharmaceuticals in exchange for tea.
According to the country's tea association, Pakistan imported about 234 million kg of tea from Kenya in the previous year, with importers also paying the government Rs65 billion in revenue.
It is worth noting that Pakistan's exports to Kenya climbed 31% over the last three years as a result of engagement between the two countries business delegations, as well as Islamabad's Look Africa policy. "From $2 million to $15 million in pharmaceutical exports to Kenya," sources claimed. Get Kenya Import Data.
Previously, the Trade Development Authority of Pakistan (TDAP) organized an exhibition that was visited by over 175 persons from 54 countries, including Kenya.
Tea prices have risen to Rs1, 600 per kg from Rs11, 00 per kg as a result of the tea industry's letter of credit not being opened (LC). Zeeshan Paracha, Chairman of the Tea Association, has stated that if consignments held at the port are not released, prices may rise higher.
The group has also written to the SBP governor, requesting a meeting to discuss bank document difficulties. He stated that PTA groups are having difficulties clearing documentation due to a dollar scarcity in banks, which means that containers containing tea leaves cannot be distributed. He warned of a tea scarcity in the country and said he will write the head of the central bank again, demanding that the matter be resolved.
Kenyatradedata is the top Kenya Trade Data and a leading market research organization that specializes in information on Kenya's import and export trade. It can be used to locate the most recent Kenya export import data. If you require any more assistance with Kenya Shipment Data or Kenya Customs Data, our specialists are always here to provide the best services to assist you in building your business in the worldwide market.