Kenya Tea Development Agency ( KTDA) has announced that Kenya is now the world's largest exporter of tea, local media reported on Monday.

The east African country had overtaken Sri Lanka after exporting 123 million kg of tea last year, local newspaper Daily Nation quoted KTDA Managing Director Lerionka Tiampati as saying.

However, the KTDA official said, as Kenya's number one foreign exchange earner, tea industry also faces great challenges.

Firstly it is threatened by surpluses in the world market, leading to low prices. Other challenges include high cost of production, labor and over-reliance on Pakistan as a key importer.

Tiampati said the labor expenses in the sector were 12 percent higher than India and Sri Lanka. "It is also higher than China's," he added.

Source: Xinhua