Challenges facing the Kenyan tea industry in exporting of value-added (Branded) tea

Abstract

The broad objective of the study was to establish the challenges facing the Kenyan tea industry in exporting of value-added (branded) tea. The study further sought to establish the extent of world market access and acceptability of branded tea from Kenya; to establish the effect of domestic export procedures in enhancing the competitiveness of Kenyan branded tea in the world markets; to establish the effect of Sanitary and Phyto sanitary measures (SPS) in enhancing the competitiveness of Kenyan branded tea in the world markets; and to establish the nature of risks facing the marketers of branded tea in Kenya. The study applied a descriptive research design. The target population of the study comprised of 12 tea producers, 136 tea packers, and selected key informants from the Ministries of Agriculture and Trade & Industry, Export promotion council and Tea board of Kenya. To enhance effectiveness of this study in the light of a population of 136 tea packers and 12 tea producers, the researcher used a sample size of 30 % of the population of tea packers and a census for the tea producers, which led to a sample of 52 respondents drawn from both categories proportionately. The researcher used questionnaires and interview guides in collection of primary data. Descriptive statistics and factor analysis techniques were the principal data analysis techniques. The two techniques were performed using Statistical Package for Social Sciences (SPSS). The findings were presented using tables. The findings of the study established that the challenges facing the Kenyan tea industry in exporting of value-added tea (Branded) arise due to lack of domestic support either from the government, relevant agencies/institutions, or from the players within the tea industry itself; restrictions to market access; stringent Sanitary and Phyto-sanitary measures and the standards set by importers of tea on the basis of climatic conditions of the source country; unexpected changes in prices in the world tea markets; and terms-of-trade losses.