Kenya Annual Tea Production Surge 28.5% Recording a High of 1.4 billion Kilos

Kenyan Smallholder Tea Farmers Receive KSh 27 billion Bonus

Green leaf production by factories affiliated to the Kenya Tea Development Agency (KTDA)  recorded an increase of 28.5 percent for the year ended June 30.

The 28.5 percent reflects an increase of 1.448 billion kgs compared to 1.127 billion kgs over a similar period last year.

KTDA attributes the increase to continued favourable weather across tea-growing regions and improved crop husbandry practices among tea farmers.

In addition to the better payments and services offered to tea farmers.

“This growth came amid a tumultuous second half of the year that saw global tea prices plummet on the back of product oversupply in the market as well as disruptions occasioned by the Covid-19 pandemic,” KTDA said.

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However, the price of a unit of KTDA tea in 2020, fell by 6.8 percent to an average twelve-year low of $2.42 per kg compared to $2.59 per kg in 2019. 

This is the lowest that the KTDA average price has been since 2008 when the average price per kg of tea at the auction was $2.17.

In the last three auctions for the year ended June 2020, the average price for a kilo of tea at the auction dropped below USD 2; a scenario last seen in 2007.

The 54 tea factory companies, which own the 69 factories that are managed by KTDA, will proceed to close their financial books for the year and also declare the final payment to each of their tea factory farmers.

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