Market News

KTDA beats average auction price for the third week running

Kenya sells more than 95 percent of its tea to
Kenya sells more than 95 percent of its tea to the world market. FILE PHOTO | NMG 

The small-holder tea sector for the third week fetched a higher price last week compared with the rest of the industry.

At Sh234 per kilo, produce from Kenya Tea Development Agency (KTDA), which represents small-scale farmers, fetched the highest price compared with other local teas that brought in an average Sh206.

This marked the third consecutive time KTDA tea has registered an above par value even as the average price at the Mombasa auction remains subdued.

“Our tea is always of the highest quality because of the consistent quality management,” says KTDA, which accounts for the bulk of total production in the market.

The average price of tea (including other countries’ tea) declined marginally last week to sell at Sh182 per kilo from Sh184 in the previous sale.


Falling prices of the commodity have been attributed to increase in global production.

Kenya sells more than 95 percent of its tea to the world market, making it the number one exporter of black tea.

Global tea production in 2018 increased by 0.68 percent to 5.81 billion with Africa contributing 717 million kilos.

Global tea exports were 1.85 billion kilos while Africa’s contribution was 654 million kilos, accounting for 35 percent.

Mombasa auction trades tea from more than 10 countries in Africa that include Rwanda, Uganda and Burundi.

The auction is the largest black CTC tea auction centre in the world and accounts for 32 percent of global exports.

Tea is one of the largest forex earners in Kenya, contributing more than Sh114 billion in 2013, Sh101 billion in 2014, Sh120.6 billion in 2016, Sh129 billion in 2017 and Sh140 billion in 2018.