This archive report was first published on 26 July 2021.
On July 7, 2021, Agriculture Cabinet Secretary Peter Munya inducted the new KTDA Board, marking a significant step towards reforming the tea sector.
As part of these reforms, the KTDA introduced a price reserve to stabilize tea prices, which had declined below production cost, negatively impacting smallholder tea farmers.
According to auction data, the volumes of tea sold by KTDA-managed factories dropped by 89% in auction number 28, held on December 7, 2021, with an absorption rate of 8% of offered teas. However, the average price improved by 25% from $2.04/Kg to $2.57/Kg for specific gardens that sold, a growth of $0.52 (KES 56) per Kilogram.
In auction number 29, held last week, the absorption rate of offered teas improved to 19%, with the average price appreciating by 22% from $1.99/Kg to $2.43/Kg for specific gardens that sold, a growth of $0.44 (KES 47) per Kilogram compared to auction 27.
Commenting on this development, KTDA Board Chairman David Ichoho stated that his board is committed to ensuring smallholder tea farmers receive fair returns despite the challenging market environment.
The Chairman added that the board is working with the government and stakeholders to ensure farmers benefit from their tea investments.
“The positive response from the market is an indication that we are on the right track, and I thank the government for its efforts through tea reforms,” the Chairman said.
Additionally, the board has disbursed a mini bonus of KES 1.31 billion, which will be paid together with the June green leaf monthly delivery.
