This archive report was first published on 6 October 2019.
Published on October 6, 2019, by Gerald Andae, a Business Daily Africa author.
The Kenya Tea Development Agency (KTDA) has seen its tea price plummet to second best in the world market, a position it held last year. Sri Lanka has taken the top spot, with KTDA paying an average of Sh41.27 per kilogramme compared to Sri Lanka's Sh48.72 for the same quantity.
Both countries recorded a decline in prices compared to the previous financial year. KTDA had paid Sh52 per kilo last year, while farmers in Sri Lanka earned Sh51.
KTDA managing director Lerionka Tiampati attributed the decline to low international prices during the review period, citing a glut and increased cost of production.
“With all the challenges, we remained at the top in payment of our farmers, emerging number two in the world market,” said Mr Tiampati.
Despite the decline, farmers affiliated to KTDA earned Sh69.7 billion in the review period, compared to Sh85.7 billion the previous year.
KTDA has been diversifying its tea production to include specialty tea, which fetches a premium price. However, efforts to increase local consumption have been unsuccessful, with tea exports accounting for 96 percent of Kenya's total tea output.
