This archive report was first published on 25 May 2020.
On May 18th and 19th, 2020, the Mombasa Tea Auction recorded a significant increase in the amount of tea offered for sale, with 12.4 million kilograms available compared to 7.4 million kilograms during the same period in 2019.
Of the tea offered, 11.1 million kilograms were sold, a notable increase from the 6 million kilograms sold in the same period the previous year.
However, the auction saw a decline in prices, with the average price per kilogram dropping to $1.87, down from $2.18 in the same period in 2019.
As the tea auction continues, brokers will retain their 1.25% commission on the value of tea sold, earning them approximately KSh1.4 billion annually in fees, following a recent ruling by the Competition Tribunal.
The Tribunal's decision also mandated the Tea Directorate to approve any changes in brokerage fees, with the exemption set to expire after two years from the date of the judgment.
