Commodities

Rwanda tea fetches higher price than Kenya's

tea

Traders at Tea Trade Centre in Mombasa. Overall Rwandan tea was of better quality than Kenya, thus the high value. FILE PHOTO | NMG

Rwandan tea outperformed Kenya’s at the Mombasa auction last year on the account of high quality that saw increased demand from buyers.

Data from Tea Directorate indicates a kilogramme of Rwandan tea on average fetched Sh287 against Kenya’s Sh262 last year.

The Rwandan price, however, came down from a high of Sh323 that the neighbouring state fetched the previous year while Kenya’s tea also declined from Sh300 to Sh262 in 2018.

Rwanda, according to brokers at the auction, produces some of the best teas regionally, which attract a premium price from buyers at the auction.

“Rwandan tea normally fetches good price at the auction because of good quality that results from best agronomical practices that they have invested in,” said one of the tea brokers.

“To them (Rwanda) quality is more important than the volumes that they bring at the auction,” he added.

Over seven countries sell their tea through the weekly Mombasa auction, destined for international market. The auction is managed by the East African Tea Traders Association.

Earnings from Kenyan tea exports are projected to rise by Sh5 billion this year resulting from low volumes and high auction price.

The Tea Directorate says the volume of the beverage will this year drop from a high of 450 million kilos that realised in 2018 to a low of 435 million.

The decline in supply, says the directorate, will see the average auction price surge to Sh280 per kilo up from Sh260 achieved in 2018.

Tea prices have been on the decline in the last quarter of the year, with an average price in the last auction held last week remaining within a two-year low range.

Eatta had attributed a string of poor prices on Kenyan tea to increased volume in the market due to high production from farmers.