Export
Major Export Products
Agricultural sector is the dominant sector in the Kenyan economy accounting for about a quarter of the Gross Domestic Product.
The sector is the largest contributor of foreign exchange through exports earnings from Tea, Coffee and Horticulture.
Agriculture also provides employment and livelihood to a large percentage of the population. An estimated 75% of the population depend on the sector.
The sector continued to perform well on average for the fifth year running despite delayed long rains and low volume of short rains in 2007.
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Tea
Tea is the leading export commodity in the country in terms of foreign exchange generation, accounting for almost 20% of total export earnings. Tea industry is a major source of employment with over 2 million people in direct tea farming, manufacturing, marketing and indirectly in retail outlets and transportation.
The area planted with tea increased marginally by 1.4 per cent from 147.1 thousand hectares in 2006 to 149.2 thousand hectares in 2007. During the same period tea production increased by 19.0 per cent from 310.6 thousand tonnes in 2006 to 369.6 thousand tonnes in 2007.
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Prices of agricultural commodities recorded mixed performance with prices of tea and coffee declining while those of maize, wheat, sugarcane and milk among others rising.
Handicrafts
Kenyan handicrafts have gained prominence internationally due to their high quality and originality, making the product a major export of this country.
The products are functional as well as decorative and include popular and high quality exports such soapstone,
handmade basketry, ethnic jewelry, wood carvings, Maasai beadwork/jewelry, clay/ceramic products, toys (wooden/cloth) and tie & dye textiles and garments.
Kenya is currently exporting the handicrafts in large volumes to major international markets such as Britain, France, Germany, Italy and U.S.A.
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The export of tea increased in volume from 318.9 thousand tonnes to 370.2 thousand tonnes in 2007 while the value of tea exports dropped from Ksh. 47.3 billion to 46.8 billion over the same period. This drop was largely attributed to strengthening Kenya shilling and low prices in the international market.
Small-scale tea growers, estimated at 300,000, process and market their tea through 54 tea factories under the Kenya Tea Development Agency (KTDA), while large scale tea growers (tea estates) process and market their tea through 38 tea factories operated on individual private basis.
Kenya is one of the largest producers of black tea in the world. Kenya's tea is grown in the highlands, west and east of the rift valley. The cool temperatures, abundant rain and rich fertile soils guarantee high quality tea which has over the years earned Kenya premium prices at the auctions.
Kenya's tea is marketed through the auctions.
Mombasa tea auction is the largest in the world. A small percentage of exported tea is sold directly to buyers. Kenya's tea is manufactured under CTC (cut tear crush) method which guarantees high cuppage. Kenya has over the years re-affirmed its position as the world's biggest exporter and producer of high quality black tea.
In 1996 Kenya was the biggest exporter of tea and is currently commanding a market share of over 15% of the world's total tea trade. During harvesting, great care is taken to ensure good quality. Two leaves and a bud are plucked during harvesting to ensure good quality tea. This is one of the most important quality control measures which even the smallest tea farmer is well conversant with.
The major export markets for Kenya's tea in order of size are Pakistan, Egypt, UK, Sudan, Afghanistan, Yemen, Russia, UAE, Kazakhstan, U.S.A. and Canada among others.
Kenya's tea is available in two forms namely packed and bulk tea. Kenya's tea is known for its unique high quality and is used to blend other low quality teas from other countries.
For more information visit www.teaboard.or.ke, www.ktdateas.com
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Coffee
In recent years, contribution of coffee to the economy in terms of foreign exchange earnings and employment has been steadily declining.
The decline can be explained by low coffee production, which has resulted due to the uncertainty of the outcome of recent policy changes, low world market prices and lack of credit. The coffee sector has been liberalised.
Kenya produces approximately 2.5% of the world's total production and commands a market share of over 3% of the global coffee trade.
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Kenya's coffee is of the species Arabica, which is a high quality mild coffee favored for blending the more common coffee of other origins.
The uniqueness of Kenya's coffee stems from the rich volcanic soils on which it is grown, pleasant climate, good plant breeds and the meticulous attention given by farmers.
Kenya's coffee is hand picked, graded, wet processed and sun dried before milling and grade as per sizes. The resultant green coffee beans are ceremoniously roasted to produce a pleasant aroma and ground ready for the brew.
Kenya's coffee is marketed through the auction at Nairobi. Recently Coffee Board of Kenya opened a Coffee Stock Market in Nairobi. Part of the production is marketed through private treaty with buyers.
The major export markets for Kenya's coffee are Germany, Belgium, Sweden, Netherlands, UK, Finland, USA and Saudi Arabia.
For more information visit www.coffeeboard.co.ke
Pyrethrum
Pyrethrum is an important crop in Kenya's economy for it offers livelihood to approximately 200,000 households with one million individuals. It is a major foreign exchange earner for the country ranking fifth after tea, horticulture, tourism and coffee.
For over 60 years, Kenya has been the leading world producer of natural pyrethrum whereby the country produces between 65% and 75% of all pyrethrum traded in the world in any given year.
Pyrethrum Board of Kenya (PBK) has the monopoly of buying dry pyrethrum flowers from the farmers, processing the flowers and marketing the processed pyrethrum products.
The local market consumes about 5% of the national pyrethrum production while 95% is usually exported to North America and Western Europe.
For more information visit www.kenya-pyrethrum.com
Horticulture
The horticulture sub sector has expanded rapidly in the last two decades largely due to the involvement of the dynamic private sector supported by appropriate government policies.
The sub sector has grown in the last 20 years and has overtaken coffee to become the second most important foreign exchange earner in the agricultural sector after tea. The sub sector has continued to attract and create employment on farms and related agro-industries, hence improving rural incomes.
The volume of horticultural exports increased by 17.8 per cent to 192.2 thousand tonnes exported from 163.2 thousand tones exported in 2006. During the same period the value of horticultural exports increased by 51.3 per cent from Ksh.43.1 billion in 2006 to Ksh. 65.2 billion in 2007. The increase was largely attributed to higher prices of cut flowers during the year.
The volume of fruits exported increased by 1.7 per cent from 15,405 metric tones to in 2006 to 15,671metric tones in 2007. Over the same period the volume of flowers exported increased by 5.4 per cent from 86, 480 metric tones to 91, 192 metric tones.
The volume of vegetables exported increased by 39.1 per cent from 61, 347 metric tones to 85, 323 metric tonnes. In 2007 earnings from export of flowers increased by 79.7 per cent from ksh.23.6 billion in 2006 to Ksh.42.4 billion.
During the same period earnings from the export of vegetables recorded an increase of 18.0 per cent from Ksh. 17.8 billion to Ksh. 21.0 billion while earnings from export of fruits slightly increased by 5.9 per cent from Ksh. 1.7 billion to Ksh. 1.8 billion.
Due to the diversity of the agro-ecological zones, a wide variety of horticultural products is grown in Kenya, key among them being:
• Cut flowers and cut foliage: e.g. roses, carnations, statice, alstroemeria, tuberose, arabicums, eryngiums etc.
• Tropical Fruits: namely, mangoes, pineapples, passion fruits, avocados, bananas, strawberries, tamarillo etc.
• Vegetables: such as french beans, brinjals, capsicums, cucumber, asparagus, chilies, courgettes, cauliflower, baby corn etc.
• A wide range of Asian or oriental vegetables e.g. okra, bittergourd etc.
World class standards of production are observed and the have codes of conduct for their members to regulate production practices to ensure proper use of the chemical to safeguard the consumer, the environment and the health of the workers.
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The Mission
