Farmers and factories producing high-quality tea in Kenya are poised for financial gains as the tea auction system increasingly rewards superior quality. According to Tea Board of Kenya (TBK) CEO Willy Mutai, tea categorized as “Good” and “Medium” fetched significantly higher prices in October 2024, with smallholder factories under the Kenya Tea Development Agency (KTDA) achieving an average of USD 2.83 (approximately Ksh 366) per kilogram, compared to USD 2.78 (Ksh 360) in October 2023.
In contrast, “Lower Medium” and “Plainer” teas, along with secondary grades, experienced weaker demand, resulting in lower prices or withdrawal from auctions. Leaf grades attracted relatively higher prices than dust and secondary grades, reflecting buyers’ preference for premium quality.
October 2024 saw 32.58 million kilograms of Kenyan tea sold at auction, a decline from 38.63 million kilograms in October 2023. Despite good demand, high supply volumes and global economic shocks continued to suppress prices. The ongoing Russia-Ukraine conflict, internal unrest in Sudan, and shipment disruptions in the Red Sea compounded these challenges.
Demand was driven by selective but active buying from Pakistan packers and strong interest from Egyptian and South Sudanese packers. Specialty teas, primarily Orthodox varieties, accounted for 2% of total production, highlighting the growing market for premium niche products.
Kenyan tea production in October dropped to 50.06 million kilograms from 52.79 million kilograms last year, largely due to depressed rainfall. While the West of Rift recorded moderate rainfall, the East of Rift experienced significantly lower precipitation.
Despite this short-term dip, cumulative production for 2024 was 495.23 million kilograms, a 6.5% increase compared to the first ten months of 2023, driven by favorable weather conditions in the year’s early months due to the El Niño phenomenon.
Exports in October decreased by 9.04% to 43.63 million kilograms, with reduced shipments to key markets like Pakistan and Egypt. Nonetheless, Pakistan remained Kenya’s leading tea export destination, importing 13.10 million kilograms, followed by Egypt, the UK, and the UAE.
