Kenya’s tea prices fall 10.6 percent in first 8 months

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Herbal Tea
Tea

The average price of Kenya’s tea declined 10.6 percent in the first eight months of 2023, as compared to a similar period in 2022 due to global recession, the Tea Board of Kenya (TBK) said on Wednesday.

The institution said in a report released in the Kenyan capital of Nairobi that the average price of the tea per kilo during the period stood at 2.26 U.S. dollars, a decline from 2.54 dollars in a similar period in 2022.

“The auction prices have been depressed since the second quarter of 2022 owing to less demand occasioned by continued economic recession facing global markets,” the TBK said, attributing the recession to the effects of the ongoing Russia-Ukraine crisis and the recent armed conflict in Sudan.

During the period, the volume of Kenya’s tea exports also declined 10 percent to 271 million kilos, down from 303 million in a similar period in 2022.

The TBK, however, expected the export volumes to rise after countries that had kept off Kenyan produce resumed buying after several months of absence.

According to the TBK, exporters in Sudan resumed buying the tea in August, while Russia and Iran increased shipments from Kenya.

Kenya’s main tea markets are Russia, Pakistan, Egypt, Sudan, Britain, and the United Arab Emirates. Tea is among the leading foreign exchange earners for the country, alongside horticulture, coffee, and tourism.

Kenya earned 993 million dollars from tea in 2022, a rise from 979 million dollars in the previous year.

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