Average tea prices at the Mombasa auction fell with a kilo selling at $1.65 (KSh178.12, driven by low demand and a huge supply.
This price was last seen in 2017.
According to the East African Tea Trade Association (EATTA), the price of the commodity declined to KSh181 last week, down from KSh187.
“Out of 13 million kilos available for sale, 10.3 million were sold while 20 per cent remained unsold,” said the EATTA.
On the other hand, Tea exports rose 18.9 per cent in the first quarter of this year as compared to a similar period in 2020, according to the Tea Directorate.
“Demand has also been affected to some extent by reduced consumer purchasing power due to the effect of the global economic recession that is perpetuated by the Covid-19 pandemic as well as the devaluation of some foreign currencies against the US dollar,” said the Kenya Tea Directorate.
More than 620,000 small-scale farmers affiliated with Kenya Tea Development Agency (KTDA) expect a mini bonus in July, a payment that will be combined with the green leaf supply for June 2021.
The payment will range between Ksh 2 and Ksh 5 per kilogram of green leaf delivered for six months between July 2020 and December 31, 2020.
