Browsing: tea auction

Kenya moves to save its dwindling tea fortunes

Kenya moves to save its dwindling tea fortunes

Investing

If there is anything that has put Kenya on the global map, then it is her teas. While the country has been forced to compete with Ethiopia and Uganda for crown coffee, South Africa and Tanzania for game safaris and Rwanda and Nigeria for ICT start-ups, it has easily overcome competition for its black tea.

During the year 2019, a total of 497 million kilograms of tea were exported, 23 million kilograms higher than the 474 million kilograms exported in 2018.  During the period, the tea sector contributed Ksh117 billion exports and Ksh22 billion in local sales towards the country's GDP. Kenyan tea competes with tourism, diaspora remittance and horticulture as the highest foreign exchange earner.

The sector also supports the livelihood of over five million Kenyans with approximately 70% of tea production in the country undertaken by small scale tea farmers.

However, the black gold has been on a

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A rising production and sale of Kenya tea has not gone un noticed with India getting jittery that the increase in volume will affect its own production

Panic as Coronavirus forces Africa’s largest tea auction shut

Industry and Trade

The East Africa Tea Trade Association, the organization that runs the famed Mombasa tea auction has announced that it was postponing indefinitely the planned auction of regional teas, sending the industry into chaos.

With the suspension, 600,000 small-scale farmers and employees. of factories across the region will not be processing tea leaves unless those destined for alternative markets rather than the Mombasa auction.

The postponement comes amid reports that key buyers have failed to turn up for trade at the auction resulting in massive price drops.

“Further developments have come to light with respect to the spread of COVID-19 virus. It is due to this that the East African Tea Trade Association has taken the decision to postpone auction-12, the secondary auction of Monday 23rd and Primary auction of Tuesday 24th April,” noted a statement by Edward Mudibo, the Managing director of EATTA.

According to the figures from the auction, …