Cause of High Cost of Tea Production

Cause of High Cost of Tea Production

Tea is a major export product from Kenya. This discussion has come at the right time when many tea farmers have just received their bonus.

This is the time when prostitutes from major urban areas in Kenya migrate to tea growing areas to get a share of the tea payments windfall.

Putting that aside, let’s look at the cost of tea production in Kenya and the emerging trends. Currently, workers at the tea farms are agitating for increased salaries for their services.

It costs Ksh. 185 to produce one kilogram of tea for export. This is among the highest costs in the world. In India, it costs them Ksh. 166 to produce a single KG of tea. In fact in Malawi it is even cheaper at Ksh. 123 per kilogram.

High cost of electricity and labor are the major drivers of skyrocketing cost of tea production in Kenya.

This way Kenya cannot compete effectively in the global markets. The Ministry of Energy and Petroleum has been approached to do something about their high tariffs. What can be done?

The Kenya Tea Growers Association has reported that the tea pickers strike has cost tea growers Ksh. 400 million already.

 

 

 

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Editor-in-Chief

Geoffrey Kerosi, the Editor-in-Chief at Kerosi Dotcom. He is an economist, activist and blogger. His passion lies in story telling through digital media and film-making. No one he works for is responsible for the content produced and shared on this blog. Therefore, these are his own opinions and analyses.

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