The ongoing threat of war between Russia and Ukraine could hurt Kenyan tea farmers the most in terms of global business, Financial Day can reveal.
The two countries could see a full-blown war explode in the near future after Russian President Vladimir Putin on Monday called an unscheduled ‘extraordinary’ meeting of his full security council.
The war has centered on the status of Crimea and parts of the Donbas, which are internationally recognized as part of Ukraine.
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The war is set to affect global trade, especially in the oil sector, since Russia is world’s third-largest oil producer. Already, the global oil prices are soaring, with the price of a barrel of oil expected to move from the current price of $94.20 to $150.
Kenyan tea farmers will not be spared either, owing to the fact that Russia is the fourth-biggest buyer of Kenyan tea, having taken up produce worth Ksh6.2 billion in the 11 months to November 2021.
As of August 2021, Pakistan was the leading export destination for tea produced in Kenya. The country in South Asia imported roughly 18.6 thousand metric tons of the product, accounting for about 40 percent of the total exports.
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Kenya is one of the main tea exporters globally, only behind China and Sri Lanka. In the African continent, the country is by far the main tea producer.
Already, the Kenyan Government has delved into the matter, accusing Russia of using unorthodox means to interfere with Ukraine’s sovereignty.
Kenya accused Russia of irredentism and expansionism, appealing for diplomatic channels to be used to resolve the matter as opposed to using force.
“Kenya, and almost every African country, was birthed from the end of empire. Our borders were not of our own drawing. They were drawn in the distant colonial metropoles of London, Paris and Lisbon with no regard for the ancient nations they cleaved apart,” said Ambassador Martin Kimani during a meeting of the United Nations (UN) Security Council on February 21, 2022.
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“Rather than form nations that looked ever backwards into history with a dangerous nostalgia, we chose to look forward to a greatness none of our many nations and peoples had ever known.”
Worse still, western powers have threatened to put sanctions on Russia, which include being denied the chance to trade using the dollar. This would deny it trade with global partners who use the dollar, such as Kenya.
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Kenya would also miss on wheat imports from Russia. Currently, 75 percent of wheat imported into Kenya comes from Russia and Ukraine, which are the biggest exporters of wheat in the world.
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