Tea and coffee markets record improvement at the auctions

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Tea and coffee sales generated Sh2.60 billion at last week's auctions that attracted local and international buyers. This was a slight increase from the previous week's sale that stood at Sh1.816 billion.

In the auctions conducted in Mombasa and Nairobi, the small stakeholders through their factories and cooperative societies earned well owing to the impressive market for their produce.

At the Mombasa Tea Auction, KTDA managed factories fetched Sh890 million after the sale of 259 tonnes that traded at an average of  Sh343.14 per kg of made tea, compared to  Sh1.018 billion made in the previous week.

KTDA Holding Chairman Enos Njeru said the performance at the auction was impressive based on the increased number of factories selling their tea above Sh343 per kg.

He said although the supply at the market has reduced as the majority of the farmers have pruned their tea bushes awaiting the application of fertiliser, the prices are improving despite the cost implications caused by the tea levy.

“If the tea levy of Sh2.88 per kg can be suspended, the growers will reap better results in the year 2026/2027,” said Njeru.

EATTA Managing Director George Omuga reported that in the weekly auction, 13 factories achieved above  Sh387 per kilo compared to the previous week, where seven factories registered impressive prices.

In the report, Omuga outlined that Imenti, Mununga, Gathuthi, Kiegoi and Rukuriri factories achieved the best prices of between Sh429.57 and Sh405.06 per kg of made tea.

“Ngere, Njunu, Kathangariri, Kinoro, Kangaita are among those that performed better in the auction,” said Omuga.

In the analysis, Momul Tea Factory in the west of the rift, achieved the price of  Sh340.56 per kilo for a supply of 95,700 kgs.

The report indicated that 30 tea factories managed to sell all the stocks offered at the auction as 306,397 kgs were returned to the warehouses as unsold tea, compared to 329,079 kgs in the previous week.

In the auction, Kenya sold 5,1333 tonnes at Sh290.25 per kg while Rwanda managed to trade 434 tonnes of tea at a rate of Sh380.55 per kg.

In the coffee sector, trading at the Nairobi Coffee Exchange (NCE), farmers through their cooperatives and estates netted Sh 1.168 billion following the auction of 21,223 bags of coffee.

NCE report stated that in the market, 1,819 bags of AA grade were offered, grade AB and C had 9,325 bags and 6,457 bags, respectively, attracting 18 local and international buyers.

“In the brokers category, New KPCU sold 6,406 bags, Kirinyaga Slopes 4,371 bags, Alliance Berries 3,883 bags  among other licensed brokers,” read part of the report.

NCE CEO Lisper Ndung’u stated that in the weekly market, 10 coffee brokers and dealers participated, an indication it was participatory by the stakeholders.

“Last week’s auction was impressive, hoping the farmers will continue trading before the coffee year comes to an end on September 30,” said Ndung’u.