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Kenya’s tea production fell by 11.5% in the first seven months of 2025 to 322.29 million kilograms, downfrom 364.13 million kilograms during the same period in 2024.
The decline was largely attributed to extended dry and cold weather conditions that suppressed yieldsacross major tea-growing regions.In July alone, production dropped by 4.37% year-on-year to 39.04 million kilograms. The East of Rift regionsaw a sharper decline of 9.8%, while the West of Rift recorded a smaller 2.8% decrease. Factoriesmanaged by the Kenya Tea Development Agency (KTDA) experienced the steepest fall of 13.7%.
Rainfall levels averaged below 12 millimeters per day in some tea zones, coupled with lowtemperatures ranging between 8°C and 21°C, resulting in reduced crop performance.
The impact of lower output extended to the Mombasa auction,where tea sales dropped 25.6% year-on-year to 25.41 millionkilograms in July. The average auction price declined to US$2.05 per kilogram from US$2.21 a year earlier, while prices inKenyan shillings averaged Kes 264.89 per kilogram, reflecting
a 7.7% decrease.
Despite the price drop, market absorption improved to 55% from 40% in the previous year due to widerquality differentials. Smallholder teas fetched a higher average of US$2.32 per kilogram but remainedbelow the US$2.77 recorded in July 2024.
Demand from key markets such as the UK, Russia, and Sudan remained weak, though Pakistanmaintained steady purchases, accounting for 36% of Kenya’s tea exports at 20.06 million kilograms.
In July, tea exports rose 5% year-on-year to 55.57 million kilograms. However, cumulative exports for thereview period declined 7% to 330.19 millionkilograms, influenced by reduced global demand, shippingdelays along the Red Sea, and lower European buying.
It is projected that total tea production in 2025 will reach about 553 million kilograms, down from 594 millionkilograms in 2024.
To boost export earnings, the first-ever auction for orthodox teas was introduced,featuring 2,925 packages, about 91,800 kilograms, expected to attract bids between US$3 and US$10 perkilo.
Source: Africa Business News (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka
Forbes & Walker was set up in 1881 as a partnership between James Forbes and Chapmen Walker. Although there is no actual record of the date on which it was established the very first cash book, still in the possession of the Finance Director, indicates the brokerages were earned from 1st August 1881. In Sir Thomas Villiers' book “Mercantile Lore” the date of establishment of Forbes & Walker has been put down Read More...