Rwanda bypasses Kenya auctions with direct tea exports to Pakistan

The initiative is expected to increase export earnings and improve returns for tea farmers by giving Rwandan tea direct access to a market where demand remains strong.

For years, much of Rwanda’s tea has been sold through auctions in Mombasa, Kenya. Traders often buy the tea and blend it with other varieties before reselling it in international markets.

Trade and Industry Minister Prudence Sebahizi said Rwanda has started working with investors in Pakistan to establish direct trade links.

"Rwandan tea is usually sold in Mombasa, where groups of traders largely determine the price," Sebahizi said Tuesday. "We have now begun working with investors in Pakistan so that Rwandan tea can be sold directly there without passing through other markets first."

The minister said the new arrangement is expected to raise the price received for Rwandan tea and help preserve its identity in export markets.

According to government figures, Rwandan tea currently sells for between $2.83 and $3.55 per kilogram at the Mombasa auction. In Pakistan, prices range from $4 to $7 per kilogram, reflecting stronger demand.

Tea is one of Rwanda’s leading agricultural exports and a major source of foreign exchange earnings.

Data from the National Agricultural Export Development Board show Rwanda exports between 38,000 and 40,000 metric tons of tea each year.

In the 2023-24 fiscal year, the country exported 38,467 metric tons of tea worth about $114 million, according to NAEB.