Tea prices rise at Mombasa auction after court suspends levy

  • KTDA-managed factories recorded improved prices following the suspension of the contentious tea levy.
  • Mount Kenya factories dominated the top prices, with Mununga leading at Ksh 439 per kilogram.
  • Delayed rains continue to affect tea production, leaving some factories operating below capacity.

Kenya Tea Development Agency (KTDA) managed factories sold tea worth Ksh 1,086,258,987.99, weighing 2,835,223 kg, at the Mombasa Tea Auction on Monday.

A week after the High Court suspended the contentious tea levy, factories in the east of the Rift Valley (Mount Kenya) achieved better prices. They sold above Ksh 387 per kg ($3.00), except Michimikuru Tea Factory, which sold at Ksh 368.94 ($2.86) per kg of made tea.

The East African Tea Trade Association (EATTA) report reflected that Mununga Tea Factory achieved the highest price of Ksh 439 ($3.41) per kg, followed by Githongo at Ksh 437 ($3.39), Rukuriri at Ksh 430 ($3.34), Ngere at Ksh 429 ($3.33) and Njunu at Ksh 429 ($3.33), among others.

KTDA Holdings chairman Enos Njeru said that during the week, Rukuriri sold 67,536 kg, Mungania 82,288 kg and Kathangariri 45,400 kg, despite the locality experiencing delayed rains.

“There is reduced production owing to the impact of the delayed rains; thus, factories are operating below capacity,” said Njeru.

READ:

Bura Irrigation Scheme expands into sugarcane farming

EATTA Managing Director George Omuga appreciated the production of quality teas by the farmers, saying the buyers are interested in the best.

“Owing to the impact of the delayed rains, the buyers are interested in all the production offered at the market,” said Omuga.

Other factories that achieved better prices are Kathangariri and Mungania, at Ksh 424.41 ($3.29) per kg.

In the market, the factories that offered the highest volumes were Ikumbi at 96,276 kg, Mungania at 82,288 kg, Ndima at 79,976 kg, Mununga at 77,356 kg and Kiru at 74,640 kg, among others.

Kenya auctioned the largest volume of 5,366,343 kg, followed by Uganda at 911,920 kg, Rwanda at 180,978 kg and Burundi at 13,434 kg.

“Rwandese tea was bought at Ksh 438 ($3.40) per kg, Kenya Ksh 318 ($2.47) per kg, Uganda Ksh 170 ($1.32) per kg, and Burundi Ksh 181 ($1.41) per kg,” the report reflected.

In the market, 49 buyers participated, with Global Tea buying the largest volume of 938,760 kg, LAB International 845,820 kg and James Finlays 652,864 kg, among others.

By correspondent

Get more stories from our website: Sacco Review. 

For comments and clarifications, write to: Saccoreview@shrendpublishers.co.ke

Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates

Stay ahead of the pack! Grab the latest Sacco Review newspaper!

Sharing is caring!

Leave a Reply

Don`t copy text!