Tea prices have surged in the first two auctions of the year, supported by buyers’ shift towards quality purchases. Data from East Africa show that volumes sold in the initial sales were lower than in 2025, but higher prices per kilo are set to benefit farmers.
In the first sale, 8,243,508 kilogrammes were sold, down from 9,341,786 last year, out of 9,575,196 kilos offered, compared with 10,761,243 kilos the previous year.
During the second sale, sales fell by more than three million kilos compared with 2025. Of the 9,575,196 kilos offered, 7,476,411 were sold at an average of $2.19 (Sh282.5) per kilo, up from $2.12 (Sh273.5) for 10,127,435 kilos sold during the same period last year. Meanwhile, 8,698,588 kilos were offered in the second sale, down from 11,962,894 kilos offered last year.
Teas from the East of the Rift continued to command premium prices due to quality, creating disparities in bonuses.
A Kenyan farmer picking tea.
Photo credit: File | Nation Media Group
Farmers in the West of the Rift saw sharp drops, with some factories paying Sh12–Sh13 per kilo, compared with Sh26–Sh57 in the East, highlighting significant gaps.
East Africa Tea Trade Association (EATTA) managing director George Omuga said the tea auction is moving in the right direction, focusing on quality over quantity.
“We urge farmers to prioritise quality, not quantity. This year, however, data show that volumes offered in the market have been lower than any other year,” said Mr Omuga.
He added: “Last year, 48 per cent of tea remained unsold, compared to 25 per cent this year. We have made significant progress in ensuring most tea is sold, which benefits farmers.”
In 2025, EATTA launched a campaign to reduce fertiliser subsidies to tea farmers, arguing that they were contributing to oversupply, and redirected funds to marketing Kenyan tea.
Mr Omuga said flooding the market depresses prices, underscoring the need to rethink the fertiliser subsidy. “We have already achieved sufficient supply, which has affected auction prices. The government should consider subsidising inputs that improve quality and access to markets,” he said.
He added: “When supply exceeds demand, prices per kilogram fall, reducing farmers’ earnings. Redirecting fertiliser subsidy funds towards quality improvement and direct market sales would help farmers fetch better prices.”
Data from East Africa show that tea volumes sold in the initial sales were lower than in 2025, but higher prices per kilo are set to benefit farmers.
Volumes of unsold tea have fallen by more than half compared to 2024, thanks to improved quality. Approximately 428.2 million kilogrammes were sold this year, from 573.7 million kilogrammes offered in the past 50 weeks, compared to 462.1 million sold in 2024 from 893.8 million kilogrammes offered.
