Price of Kenyan Tea Rises to a Historic High at Mombasa Auction

The price of tea at the Mombasa Auction has hit a record high price of Ksh443 ($3.41) per kilo - a 30-year record high. 

According to data published by the East African Tea Traders Association (EATTA), the current prices mark a 29% price growth compared to a similar time in 2023. 

The price increase is reported to have come as a result of increased demand for Kenyan tea - particularly from the European and American markets. 

The Central Bank of Kenya (CBK) last week told Parliament that they were expecting an increase in dollar earnings from the sector - on account of the favorable global prices. 

At Ksh443 per kilo, the current retail price is the highest ever recorded over the past 30 years, only coming close to the prices recorded in July 2015 when the commodity recorded a record high of $3.39 (Ksh440 by current rates). 

In 2023, tea farmers benefited from increased tea exports attributed to the increased demand for Kenyan tea in traditional markets - as well as the weakening shilling against the dollar which raised earnings for exporters. 

The volumes sold at the Mombasa Auction rose from 450.33 million kilos in 2022 to 522.92 million kilos in 2023.

Despite the increased tea prices, farmers will lose the benefit of the weaker shilling as the shilling has greatly recovered in 2024 - traded at around Ksh130 against the dollar - compared to last year when it averaged Ksh150.