Tea market raise Sh 1.7 billion at the auction 

The Mountain Journal  

KTDA managed factories made Sh 1.7 billion at the Mombasa Tea Auction after the sale of 5,445,627 kgs of made tea, last week the market fetched h 2.1 billion after the sale of 6,604,127 kgs. 

 In the weekly auction, only Kirinyaga based Mununga and Kimunye tea factories achieved the best prices of above  Sh 387 ($3) per kg, as the Enerege factory in the west of the rift garnered the least price of Sh 239.94($1.86) per kg.

The Kenya tea market, according to experts, remains  suppressed as buyers shifted to the alternative markets to divert from the tea levy of Sh 2.28 per kg at the auction.

In the market, other best performing factories were Rukuriri  Sh377 per kg, Kiegoi Sh 376 per kg, Gathuthi Sh 374 per kg, Imenti Sh 370 per kg, Ngere Sh368 per kg, Kathangariri Sh 367 per kg, Ndima Sh 366 per kg, Kangaita Sh 365 per kg among others.

 In the west of the rift, Momul led the pack after it auctioned 118,480 kgs at the average price of  Sh 314 ($2.44) per kg.

KTDA Holding Chairman Enos Njeru said in the auction 1.9 million kgs were returned  to the warehouses after the buyers and tea brokers failed to agree on the set prices at the auction.

Photo/ KTDA Holding Chairman Enos Njeru .

“ I am pleased as small scale holders, despite the challenges emerging in the tea sector, have continued producing quality green leaf for processing in their respective factories,” said Mr Njeru.

EATTA Managing Director George Omuga said 9 million kgs of tea traded in the auction sourced from Kenya, Uganda 877,645 kgs, Rwanda 554,484 kgs, Burundi 20,348kgs and Tanzania 4,640kgs.

“In the average prices, Rwanda continued achieving the best price of $2.77 per kg,  Kenya $2.23 per kg, and Uganda $1.26 per kg,” said Omuga in a report.

Tea Board of Kenya CEO Willy Mutai in a report said in the auction TDA factories offered 5.7 million kgs at Sh 318.63( $2.47) per kg followed by the independent producers 2.7 million kgs at Sh 224.46 ($1.74) per kg.

“ In orthodox tea KTDA factories 392,000kgs at  Sh 439.89 ($3.41) per kg while the independent producers 74,000 kgs each at Sh366.36 ($2.84) per kg,” said Mutai.