Egypt Explores Barter Arrangement for Kenyan Tea to Conserve Foreign Reserves

Nov 7, 2023 | Business, News | 0 comments

Egypt, one of Kenya’s prominent trade partners for its black tea exports, is actively considering a barter arrangement as a means of securing this popular commodity without dipping into its foreign reserves. As the world’s leading exporter of black tea, Kenya has been approached to explore this innovative trade approach.

Kenyan Treasury Secretary Njuguna Ndung’u revealed that Egypt had recently inquired about the possibility of exchanging its products for Kenyan tea. This barter arrangement would allow the two nations to trade in a mutually beneficial manner, potentially reducing their reliance on foreign currency transactions.

Egypt, as the second-largest purchaser of Kenyan tea, plays a significant role in supporting Kenya’s tea industry. By exploring alternative trade mechanisms like barter arrangements, both countries can enhance their trade relations and foster economic cooperation.

While specific details and products under consideration are not yet disclosed, the move highlights the creative and adaptable nature of international trade, particularly when it comes to essential commodities like Kenyan tea. Egypt’s keen interest in this approach showcases the value of Kenya’s tea production and the potential for innovative solutions to meet global demand while preserving foreign reserves. Egypt’s foreign ministry has yet to issue a formal response on the matter.