Making Kenya’s efficient tea markets more inclusive

Kenyan smallholder tea farmers generally received prices closer to those in international markets. This reflects the country’s liberalized market structure for tea and the lack of distortions resulting from domestic policies. The close alignment between domestic and international prices may also be due to the efficient organization of smallholders who process and market their tea under the Kenya Tea Development Agency Ltd. (KTDA). However, MAFAP analysis shows that tea prices were vulnerable to short-term shocks due to Kenya’s reliance on only a few key trade partners.

Type Policy Briefs
01 Jul 2013