Kenya-Iran in talks to reopen tea trade

Members of the delegation. Photo/UGC.

For our correspondent

newshub@eyewitness.africa

The secretary of the Cabinet of Agriculture and Livestock, Mutahi Kagwe, recently hired an Iranian commercial delegation to discuss the possibility of clarifying tea trade between the two countries.

Kagwe said that the measure is part of Kenya’s broader strategy for strategies between bilateral regions and the largest regions of Middle East and Central Asia and ensure that its high quality tea continues to reach world markets.

The CS was the one who accompanied the local stakeholders of local tea, including the president of the Kenyan Tea Development Agency (KTDA), Mr. Chege Kirundi and the CEO of Mr. Wilson Muthaura, Kagwe with the Iranian delegation to the commercial relations of discussion and the potential of a beneficial mutual association.

Also present at the Kenyan ambassador meeting in the EAU, Mr. Milimo Nganga, who bought Kenya to expand his commercial relations with the largest regions of the Middle East and Central Asia.

The commercial prohibition against Iran, imposed by the United States and several Western countries, has been a significant barrier for the country’s access to global markets.

These sanctions, which were particularly strict after the 2015 nuclear agreement, restricted Iran’s ability to import certain goods, including agricultural products such as tea.

The situation worsened after the reimposition of US sanctions in 2018 under the “maximum pressure” campaign, which went to Iran’s economy, including the trade of critical sectors.

For several years, these sanctions severely reduced Iran’s ability to participate in international trade, which affected their access to foreign markets for products such as tea.

However, as diplomatic tensions have easy and certain restrictions have raised the bone, Iran has begun to look for new commercial partners to rebuild their economy.

The reopening of tea trade with countries like Kenya could have a transformative effect in the Iranian market, which has a long leg a significant tea consumer.

Iran has one of the highest per capita consumption rates in the world, with the tea bee a scam in the Iranian culture. The demand for tea is robust, and historically, Iran has trusted imports to meet this demand.

The Iranian market is particularly interested in high quality black tea, which comes from countries such as India, Sri Lanka and Kenya. Before the sanctions, Kenya was one of the biggest tea exhibitors to Iran, with Kenya tea highly appreciated for its rich flavor and superior quality.

Kenya, such as the main exhibition of the world or black tea, produces more than 400 million kilograms or tea annually. The Kenyan tea industry supports about six million people, including farmers, processors and exporters.

Most Kenya tea exports go to traditional markets in the United Kingdom, Russia and the Middle East. The potential reopening of the Iranian market represents a great opportunity for Kenya tea producers to expand their reach, partially given Iran’s historical preference for Kenya’s tea.

The reopening of tea trade between Kenya and Iran would be a change of play, particularly for Kenya tea producers and the wider tea value chain.

As Mr. Kagwe stood out at the meeting with the Iranian delegation, again having the robust market of Iran could increase the demand of Kenya’s tea, which provides a great boost to Kenya’s export profits.

The Kenyan tea industry, and an cornerstone of the country’s agricultural sector, could be short -term sales such as long -term growth in the region.

In addition, this movement would not only strengthen the bilateral relations of Kenya-Iran, but also sacrifice the opportunities for regional commercial expansion in the wider markets of Middle East and Central Asia.

Iran, with its strategic position in the region, could serve as an entrance door for Kenya tea to penetrate new markets. This, in turn, could open roads for other agricultural exports of Kenya, improving general trade between the two countries.

For Kenya, who has faced challenges in the diversification of his tea markets, Iran’s market presents a critical opportunity. In addition, the movement is aligned with Kenya’s strategic vision of improving commercial relations with nations in the Middle East, a region with a growing demand for high quality food products.

The reopening of Kenya’s tea trade to Iran is not simply an economic opportunity; A broader diplomatic effort reacts to promote regional cooperation and improve Kenya’s position as an agricultural exports leader.

Strengthening bilateral relations with Iran could provide Kenya with greater influence in the Middle East and Central Asia, which are important regions for trade and investment.

Moreover, the measure would indicate Kenya’s commitment to promote a more diversified and resistant export market for its agricultural products. As the world recovers from the interruptions caused by the COVID-19 pandemic, such trade agreements are becoming increasingly vital for countries that seek to expand their presence in global markets.

As Kenia and Iran explore new commercial routes, partly in the tea sector, the growth and prosperity potential is immense. The reopening of tea exports to Iran could reinforce Kenya’s position as the world’s world exporter of the world, while serving as a bridge for greater cooperation between the two countries.

The next steps in the dialogue between Kenya officials and Iranian business leaders will probably determine the future trajectory of this important commercial relationship, with both nations ready to benefit from an expanded presence of the market.