Kenya Tea Development Agency tips tea prices to dip from dry spell

Kenya Tea Development Agency Holdings Chairman Peter Kanyago said global tea prices have remained relatively low compared to the previous year, leading to reduced net earnings.PHOTO:COURTESY

Kenya’s tea earnings for the 2016-2017 financial year are likely to drop following prolonged dry spells that led to depressed tea output.

Kenya Tea Development Agency Holdings Chairman Peter Kanyago said global tea prices have remained relatively low compared to the previous year, leading to reduced net earnings.

“While there are still a few months remaining in the year, there is a slim likelihood that we shall beat last year’s record,” said Kanyago.

Mr Kanyago, who was speaking at this year’s induction for newly elected directors, however, added that the tea business is cyclical in nature. “One year could be great, the next is depressed,” he said.