A blow to the Kenyan tea industry .. Sudan closes its doors and losses in billions

The tea industry in Kenya faces an unprecedented crisis after Sudan imposed a sudden ban on Kenyan tea imports, which led to severe financial losses and caused increased concern in economic and political circles.

As a result of this decision, shipments valued at about 1.3 billion Kenynn are seized in the ports, threatening the livelihood of thousands of workers in this vital sector.

According to the Kenyan newspaper “Standard”, 207 containers loaded with tea stopped to Sudan in the port of Mombasa, which represents about 20% of the Kenyan shipments directed to Sudan, while other shipments face customs obstacles in the Sudanese ports.

Also, some shipments are still stuck in the sea pending the entry permit, which increases the complexity of the situation and negatively affects the flow of trade between the two countries.

Sudan is the third largest Kenyan tea market in the world, as it imports about 10% of Kenya’s total production annually. Therefore, this ban constitutes a painful blow to the industry, as the exporting companies find it difficult to recover their financial dues or redirect goods into alternative markets.

Also, the remaining tea stored for long periods may affect its quality, and then increases the volume of possible losses.

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Financial losses

According to the Kenyans.co.ke site, Kenyan exporters incurred “unprecedented losses” as a result of this ban, amid fears that the continuation of the crisis will lead to a widespread demobilization of workers in tea farms and its factories.

Young farmers, who depend on export, face a critical financial situation, especially in the absence of alternative markets capable of absorbing the surplus quickly.

In front of the size of the losses, the sources made an urgent appeal to the Kenyan President William Roto to intervene immediately, amid demands for the government to use diplomatic channels to alleviate the crisis.

According to a BBC report, pressure on the Kenyan authorities is increasing to start direct talks with Khartoum to ensure the resumption of tea exports as soon as possible.

In a statement to keenyans.co.ke, one of the exporters said, “We are in a very difficult situation. If there is no quick solution, the tea industry in Kenya may face a widespread economic crisis.”

The causes and repercussions of the Sudanese ban

This ban came after Sudan’s suspension of all imports from Kenya, in protest against Nairobi’s recently hosting a meeting of the Rapid Support Forces, which signed an agreement with its political and armed allies to establish a parallel government in Sudan.

This meeting sparked the dissatisfaction of the Sudanese government, which responded to the imposition of a commercial embargo on Kenya.

Some analysts believe that Sudan may also seek to support its local production from tea, or that it is trying to protect its economy from external pressure. However, the closure of the Sudanese market in front of Kenyan tea may lead to high prices in Sudan itself, which may negatively reflect on consumers there.

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Will Kenya succeed in containing the crisis?

This crisis highlights the impact of political decisions on the economy, especially in vital sectors such as tea, which is one of the most important exports of Kenya.

As the losses continue, the question remains: Will the Kenyan government be able to restore the Sudanese market before the crisis worsens? So far, things remain unclear, while exporters are awaiting any official move that may save the industry from a crisis that threatens its future.