Market News

Tea prices jump to three-week high

tea

A tea picker in Nandi: Kenya is in line for billions of shillings worth of investments as emerging economies turn their focus on the country, generally targeting growth pedestals like real estate, telecommunication, agriculture and the manufacturing sectors. Liz Muthoni

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Summary

  • Tea prices at the Mombasa auction rallied to a three-week high to end a sustained slide witnessed in the last one month.
  • A market report from the auction shows a kilogramme on average fetched Sh205 up from Sh202 realised in the previous sale as the volumes offered for sale continue to grow.
  • Last week’s volumes increased to 9.7 million kilos from 9.1 million kilos previously.

Tea prices at the Mombasa auction rallied to a three-week high to end a sustained slide witnessed in the last one month.

A market report from the auction shows a kilogramme on average fetched Sh205 up from Sh202 realised in the previous sale as the volumes offered for sale continue to grow.

Last week’s volumes increased to 9.7 million kilos from 9.1 million kilos previously. The volumes have been going up in the last three sales.

Tea regulator projects that the price of the commodity, which has for the better part of the year been at below $1, will rise to $2.

The dropping prices in the last couple of auctions are attributed to low demand in the world market resulting from disruptions caused by Covid-19.

Tea exports to Kenya’s major markets dropped by 2.7 million kilos in the 10 months to October compared with the same period last year.

Tea Directorate said the volumes exported to different countries dropped to 371.8 million kilogrammes in the review period from 374.5 million in corresponding time last year.