- Tea and coffee farmers earned a combined Ksh 2.3 billion from the latest Mombasa Tea Auction and Nairobi Coffee Exchange auction.
- KTDA factories realised Ksh 1.6 billion after selling 5.05 million kilogrammes of made tea, with Mununga, Kimunye and Rukuriri recording the top price of $3 (about Ksh 398) per kg.
- Coffee farmers earned Ksh 688.6 million from the sale of 12,120 bags, with certified specialty coffee attracting strong demand and Mitondo factory fetching the highest Grade AA price of Ksh 55,853 per bag.
Tea and coffee farmers pocketed a combined Ksh 2.3 billion during the latest weekly auctions, continuing a trend of improved returns for growers.
Kenya Tea Development Agency (KTDA) factories earned Ksh 1.6 billion after 5,052,717 kgs of made tea were sold through the Mombasa Tea Auction.
Mununga, Kimunye and Rukuriri were the only factories that achieved the highest price of $3 per kg, as others settled for lower bids. Mununga fetched Ksh 398 per kg for 103,714 kgs, Kimunye Ksh 395 per kg for 72,220 kgs, and Rukuriri Ksh 391 per kg.
Rukuriri’s price is notable as the factory’s first at the $3 per kg mark since May 1, when the Ministry of Agriculture and Livestock introduced a tea levy of Ksh 2.28 per kg.
“There is a general outcry among the stakeholders in the industry owing to suppression of the premium tea, thus a major loss to the growers,” said KTDA Holdings Chairman Enos Njeru.
The reduced prices point to a lower bonus payout this year compared with last year.
Coffee sector
In the coffee sector, farmers from estates and cooperatives earned Ksh 688.6 million from the auction of 12,120 bags of coffee across various grades.
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According to a Nairobi Coffee Exchange (NCE) report, brokers offered 1,161 bags of grade AA, 5,270 bags of grade AB and 3,042 bags of grade C. Buyers showed strong interest in specialty lots carrying Rainforest Alliance, Fairtrade, Café Practices and EU Deforestation Regulation (EUDR) certifications.
“The factories that achieved the best prices for their grade AA were Mitondo (Ksh 55,853 per bag), followed by Kiairia (Ksh 55,206 per bag), Konyu (Ksh 54,818 per bag) and Murang’a-based Karuhiu Utheri (Ksh 54,689 per bag),” the report stated.
Ten coffee brokers presented coffee at the auction. New KPCU offered the largest consignment at 3,187 bags (Ksh 191.8 million), followed by Alliance Berries Limited with 1,996 bags (Ksh 115.1 million), Kirinyaga Slopes with 1,674 bags (Ksh 104.5 million), Meru County with 1,474 bags (Ksh 82.5 million), and CEBBA with 1,349 bags (Ksh 64.6 million).
Kiambu Coffee, Bungoma Union, Baringo Kawa, Mt Elgon, Nandi, Murang’a County, Ahadi Coffee and Meru South did not make any offers at the auction.
Coffee Value Chain Expert Henry Kinyua said the brokers who presented certified coffee were Alliance Berries, Kirinyaga Slopes, CEBBA and New KPCU.
Seventeen dealers participated in the auction, led by Ibero Kenya with 5,340 bags, followed by C. Dormans with 2,581 bags and Louis Dreyfus with 1,125 bags, among others.
By Boniface Gikandi
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