This archive report was first published on 12 August 2019.
Published on August 12, 2019, by George Omondi, a seasoned business journalist.
International buyers are increasingly focusing on quality, with Rwanda's tea leading the pack in terms of price at the Mombasa Tea Auction.
Weekly price offers for Rwandan teas have been on the rise in the last three months, surpassing those from Kenya Tea Development Agency (KTDA) outlets.
Broken pekoe-1 (BP1) tea from Gisovu factory in Rwanda attracted a highest bid of Ksh550 ($5.5) per kilo, compared to Ksh428 ($4.28) per kilo for the same grade from Githongo factory in Kenya.
According to William Tindi, an executive at the African Tea Brokers, the quality of tea is the key factor driving the price difference.
“Buyers may bid high or low depending on quality,” Tindi said.
The Mombasa auction is a significant platform for tea traders, with Kenya accounting for three-quarters of the produce traded.
However, despite being a leading tea exporter, Kenya's tea is losing its attractiveness, with only one of KTDA's 65 processing factories able to cross the Ksh400 ($4) per kilo price offer.
