Coffee prices continue to perform well in the market, recording a fourth straight gain as tea recorded a marginal increase at the Mombasa auction.
Data from the Nairobi Coffee Exchange shows the price of the beverage increased to $282 (Sh33,473) from $265 (Sh33,236) in the previous sale.
This marks the fourth time that coffee prices have been rallying since the auction resumed from a month-long recess in June.
The coffee prices at the auction have been helped by high demand from roasters who are now restocking ahead of the uncertainty ahead of the August 9 General Election.
The auction is now receiving some good quality short-season crop after the main one came to an end shortly before the auction took a break in May.
At the Mombasa auction, the price of tea increased marginally to $2.22 (Sh264) from $2.21 (Sh262) in the latest sale held this week as the demand for the beverage at the auction remains low.
Data from the East African Tea Trade Association (Eatta) shows the quantity of tea during the sale was more than 150,000 kilogrammes when compared with the previous trading.
The volume of tea withdrawn from the auction declined by 26 percent from a high of 31 percent last week.
The weak tea prices have been attributed to low demand as Pakistan buyers cut volumes in the wake of financial turmoil in Islamabad. Pakistan is Kenya’s largest buyer of the commodity, accounting for nearly 40 percent of the total beverage produced locally.
Pakistan's foreign currency reserves continue to fall rapidly - putting pressure on the government to cut high import costs and keep funds in the country.
Auction organizer- the East African Tea Trade Association had earlier warned that should Pakistani buyers cut down on volumes, the prices at the weekly trading will decline because of reduced demand.