254 News Blog Business Speaker Wetang’ula highlights economic fallout for Kenya if India-Pakistan hostilities escalate
Business

Speaker Wetang’ula highlights economic fallout for Kenya if India-Pakistan hostilities escalate

National Assembly Speaker Moses Wetang’ula has cautioned that the rising tensions between Pakistan and India could have major economic consequences for Kenya.

In a statement issued on Thursday, June 5, the Speaker said the disagreement, which might potentially reignite hostilities between the two nations, could have a substantial impact on the country’s export sector, particularly as Pakistan is the top importer of Kenyan tea.

Wetang’ula said this after meeting with Ibrar Hussain Khan, the Islamic Republic of Pakistan’s High Commissioner to Kenya, on Thursday, during which they discussed the topic.

The tea sub-sector is vital to Kenya’s economy, generating approximately Ksh180.57 billion (USD1.22 billion) in exports per year.

According to figures from Kenya’s Tea Board, the country shipped 206.27 million kg of tea valued at Ksh 70 billion to Pakistan.

This accounted for 34.7% of Kenya’s total tea exports in 2024, positioning it as a top destination for Kenyan tea exports.“Pakistan remains a strategic trade partner to Kenya, particularly as our largest importer of tea,” Wetang’ula said.

“Any escalation of hostilities in the region could have far-reaching economic implications for both countries and the global community.”

The conflict between India and Pakistan is largely due to an unresolved boundary dispute in the Kashmir area, which is currently administered by both countries.

Wetang’ula emphasized the need for the two countries to find measures to restore peace and diplomatic concord.

He maintains that this will not only protect economies but also vulnerable communities, particularly women and children, who bear the brunt of the burden during conflict.

“I also expressed concern about the human cost of war, especially on vulnerable populations who often bear the greatest burden in times of conflict,” the speaker said.“

Nonetheless, I was encouraged by the ongoing steps toward de-escalation and dialogue between the concerned parties,” he said.

Wetangula’s warning comes just three weeks after President William Ruto met with Chinese investors on Tuesday, May 13, to discuss methods to increase Kenyan tea in the Chinese market.

The investors, led by Fuzhou Benny Tea Industries chairman Zhang Chaobin, promised to establish tea factories in select tea-growing regions of the country in order to increase Kenyan tea consumption.

Exit mobile version