Tea factories net Sh1.3b at Mombasa auction

Smallholder tea factories have collectively earned Sh1.3 billion from the sale of 5,096,813 kilograms of tea at the Mombasa Tea Auction, marking an increase in both earnings and volume from the previous week.

Last week, the Kenya Tea Development Agency (KTDA)-managed factories earned Sh1.22 billion from the sale of 4,803,888 kilos.

A report by the Tea Brokers East Africa Ltd (TBEAL), dated November 18, highlighted a robust market performance attributed to improved weather conditions.

Factories that achieved premier prices, ranging between Sh345 and Sh305 per kilo, included Mununga, Gathuthi, Imenti, Kimunye, Kiegoi, Rukuriri, Gacharage, Githongo, Kangaita, Mungania, and Kathangariri.

The Ngere Tea Factory posted significant sales, offering 214,516kg, which fetched Sh64.9 million. Kimunye Factory earned Sh33.8 million from 105,084kg, while Rukuriri secured Sh32.9 million from a similar quantity.

Embu-based factories also performed well, with Kathangariri making Sh31.2 million for 102,576kg and Mungania earning Sh22.2 million after auctioning 72,711kg.

Kanyenya ini fetched Sh31.4 million from 116,236kg. KTDA Zone Six Board Member Enos Njeru confirmed that the auction received more tea due to increased rainfall, emphasising that continuous production of quality tea attracts better prices and more buyers.

“The farmers affiliated to Rukuriri, Kathangariri, and Mungania factories posted impressive returns from the auction owing to the production of quality tea,” said Njeru.

Tea value chain expert Peter Kamore noted the improvement follows heavy rains across the country. In the market, 13 tea factories offered over 100,000kg of tea, indicating a consistent supply across the tea belt.

“In most of the factories, the collection of green leaf is daily, owing to the increased production of the commodity,” Kamore stated.

In the west of the rift region, Momul Factory continued to post better prices, auctioning 54,624kg for Sh13.3 million, while Kapsara sold 14,640kg at Sh183 per kilo.

The auction offered a total of 9.2 million kg (138,240 packages) from multiple sourcing countries: Kenya (7.8 million kilos), Uganda (894,560kg), Burundi (108,125kg), and Rwanda (56,298kg).

Major buyers included Global Tea, Chai Trading, LAB International, and Mombasa Coffee. Out of 133,280 packages purchased, 33,560 packages remained unsold.