Sh1.3bn Kenyan tea held at Karachi port as dollar shortage hits Pakistan

Published Mar 10, 2023

Tridge summary

Kenya's tea worth Sh1.3 billion is being held at the Port of Karachi in Pakistan due to a dollar shortage, which has led to a lack of Letters of Credit for traders. This has negatively affected sales in Kenya and led to a price increase in the Pakistani tea market. The situation is expected to improve soon due to talks between Pakistan and the World Bank. Kenya is also exploring the possibility of barter trade with rice imports from Pakistan to help Pakistan, its largest buyer of tea. Last year, Pakistan imported 234 million kilogrammes of tea, 82 percent of which was supplied by Kenya.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Kenya’s tea worth Sh1.3 billion is held at the Port of Karachi as Pakistan struggles with a shortage of dollars that has restricted banks from issuing traders with the Letter of Credit, which is required before offloading. Traders say at least 200 containers with 4.8 million kilogrammes of tea are being held at the port, hitting sales back in Kenya and impacting negatively on prices. The Pakistani traders are also unable to purchase more from Kenya as they lack Letters of Credit to issue to the sellers to guarantee them payment. Read: Kenya faces tough tea export future in Pakistani cuts Kenya Tea Development Agency (KTDA) chairman David Ichoho said the situation in Pakistan is set to improve in the coming days following talks with China and the World Bank, aimed at bailing the Asian nation out of the current financial woes. “I am told that part of the teas being held at the port is being released to the market and we expect the situation to improve in coming days,” said Mr ...

Source: Businessdailyafrica