Factories managed by the Kenya Tea Development Agency (KTDA) recorded a slight improvement in the prices of tea at the Mombasa Tea Auction this week, selling at an average of $2.43 per Kg compared to $2.29 at the previous auction.

At the auction held on August 2, KTDA-managed factories offloaded 84 per cent of all teas offered at the market, down from 87 per cent sold the previous week as the market continues to embrace the minimum price regime introduced in July.

The teas sold at $1.90 before the introduction of the minimum reserve price, which signified that the market was warming to the new price regime.

The new KTDA Holdings board’s introduction of the minimum reserve price was due to the need to improve farmers’ earnings that had for a long time taken a beating from low prices.

Tea picker. PHOTO/KTDA

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Last week KTDA Holdings Acting CEO Wilson Muthaura noted that the improved price and absorption of KTDA teas was welcome and reflected that tea buyers appreciate the need for sustainable tea farming.

Prices of tea at the Mombasa Tea Auction were declining since 2018 and had this year slid below $2 and farmers faced huge losses as low selling prices cannot cover production costs.

KTDA-managed tea factories are seeking ways of reducing operational costs, including instituting energy-saving measures and installing more efficient tea processing machines.