This archive report was first published on 3 July 2020.
On July 3, 2020, tea prices at the Mombasa auction remained at a three-year low, a trend that has persisted despite a slight increase in the latest sale.
According to the East Africa Tea Trade Association (Eatta), the average price of a kilo of tea rose marginally to Sh190 from Sh186 in the previous sale, but still fell within the three-year low bracket.
Although the value rebounded this week, the prices have been falling for the past 10 weeks, resulting in reduced earnings for farmers in the just-ended financial year.
Low prices have led to traders withdrawing huge volumes of tea from the trading floor, with 23% of the total tea offered for sale being withdrawn in the latest auction.
Of the 12.5 million kilos available for sale, 9.6 million kilos were offloaded, while the balance remained unsold.
Tea price had opened the year at a high of Sh224 per kilo but has been declining since February, attributed to decreased demand due to the Covid-19 pandemic, which has disrupted the market.
Tea exports to Kenya's top three markets declined significantly in the first quarter, with exports to Pakistan dipping by 15%, and Egypt and the UK recording a decline of 10% each.
