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Nairobi — Tea prices at the Mombasa auction have increased marginally selling at USD 2.40(Shs 278) per kilo from USD 2.38 (Shs 276) recorded in the previous sale, a rise linked to improved demand and declining volumes.
During a similar period in 2021, a kilo of tea was sold at USD 1.83, tea prices have been on the rise since November on the back of the minimum reserve price regime introduced by the government.
Data from the East African Tea Trade Association show that the volumes of tea sold during the 16th week however declined to 12.6 million kilos with 20.14 percent of packages remaining unsold.
“There was a fair demand for the 190,455 packages (12,594,146.50 kilos) for sale with 152,090 packages (10,205,574 Kilos) being sold with prices closely the following quality,” EATTA said.
Prices have been on a steady rise in the previous four weeks after two consecutive drops which resulted from reduced demand and increased effect of the Ukraine-Russia war.
It later picked up offering a reprieve to tea farmers who are expecting their mini- bonus later month.
Kenya Tea Development Agency (KTDA) will pay farmers a mini bonus of Sh3 billion this month
During the auction, EATTA said there was increased interest from Yemen, other Middle Eastern countries, Sudan and Kazakhstan.
There was improved activity from Afghanistan while the UK reduced participation with selective support from Iran.
Russia remained absent for the sixth consecutive tension with local packers out-priced.