The price of the commodity has been dipping in the last two sales on the account of higher volumes offered for sale at the auction.
The volume of tea at the auction last week rose to 7.9 million kilogrammes from 7.7 million in the previous sale.
Tea prices at the Mombasa auction declined marginally last week, eroding the gains witnessed in June when the beverage hit a three-month high.
A market report by East African Tea Traders Association (EATTA) shows that on average a kilogramme of tea fetched Sh281 last week down from Sh285 in the previous sale.
The price of the commodity has been dipping in the last two sales on the account of higher volumes offered for sale at the auction.
The volume of tea at the auction last week rose to 7.9 million kilogrammes from 7.7 million in the previous sale.
“Out of 137,592 packages (8,960,000kg) available for sale, 123,173 packages (7,960,652kg) were sold with 11 per cent remaining unsold,” says EATTA in the report.
The price of the commodity had hit a high of Sh300 last month, marking the second time the value of the beverage had crossed Sh300 mark since the beginning of the year.
Tea production for 2017 is however still expected to drop by double digits due to the effects of drought.
The Agriculture and Food Authority says production of green leaf will drop from 473 million kilogrammes in 2016 to about 420 million kilogrammes this year.
The beverage earned Kenya $1.226 billion (Sh127.3 billion) last year, which was a drop of 1.7 per cent from the $1.247 billion (Sh129.4 billion) the commodity recorded in 2015.
