- Tea prices improved sharply at the Mombasa auction.
- Githongo tea fetched a top Ksh670.8 per kilogramme.
- Coffee farmers earned Ksh877 million from 15,325 bags.
Kenya’s tea and coffee markets generated Ksh1.7 billion in last week’s auctions, with both sectors posting notably improved prices for farmers.
Tea auction
KTDA-managed factories received Ksh917.6 million from dealers after a successful transaction at the Mombasa Tea Auction, following the exchange of 2,849,659kg of made tea.
A report from the East African Tea Trade Association (EATTA) indicates that 27 factories from east of the Rift registered improved prices, after produce sold above Ksh388.32 ($3) per kg of made tea.
During the week, a kilogramme of BP1 grade from Githongo tea factory attained a price of Ksh670.8 ($5.2), a move that brought celebrations in the sector.
Factories achieving the best prices are Githongo, Ksh442.47 ($3.43); Mununga, Ksh438.6 ($3.40); Kiegio, Ksh433.44 ($3.36); Ngere, Ksh421.83 ($3.27); Imenti, Ksh425.7 ($3.30); Rukuriri, Ksh420.54 ($3.26); and Gacharage, Ksh415.38 ($3.22), among others.
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KTDA Chairman Enos Njeru said the sector was recovering following the improved prices in the weekly auction, compared to the months between May and June that registered a decline after the implementation of the tea levy imposed on buyers.
Njeru appreciated the continued production of quality tea at the farm level.
“In the auction, Githongo tea factory took the lead after its BP1 grade attained a price of Ksh670.8 ($5.2), which is proof of the buyers’ confidence in Kenya’s tea,” said Njeru.
EATTA Managing Director George Omuga said reduced offers at the market have forced demand for Kenya’s tea to rise, thus leading to better prices.
“In the past month, the offers from the factories have reduced at the auction, but the buyers have continued placing demand for the produce to satisfy their local and international markets,” said Omuga.
At Githongo tea factory, Omuga explained that 24,960kg was auctioned during the week at Ksh442.47 per kg.
Coffee auction
Meanwhile, at the Nairobi Coffee Exchange (NCE), coffee farmers affiliated to societies and estates earned a total of Ksh877 million following the auction of 15,325 bags of coffee across the grades.
The report outlined that buyers bought 1,132 bags of grade AA, 6,217 bags of AB, and 4,359 bags of grade C.
The NCE report also outlined coffee brokers’ performance, with New KPCU selling 4,333 bags and Alliance Berries Limited selling 3,828 bags. Kirinyaga Slopes auctioned 2,442 bags, among others.
By our correspondent
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