Kenya’s tea production fell by 11.5% in the first seven months of 2025 to 322.29 million kilograms, down from 364.13 million kilograms during the same period in 2024.

The decline was largely attributed to extended dry and cold weather conditions that suppressed yields across major tea-growing regions. In July alone, production dropped by 4.37% year-on-year to 39.04 million kilograms. The East of Rift region saw a sharper decline of 9.8%, while the West of Rift recorded a smaller 2.8% decrease. Factories managed 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 low temperatures 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 million kilograms in July. The average auction price declined to US$2.05 per kilogram from US$2.21 a year earlier, while prices in Kenyan 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 wider quality differentials. Smallholder teas fetched a higher average of US$2.32 per kilogram but remained below the US$2.77 recorded in July 2024.

Demand from key markets such as the UK, Russia, and Sudan remained weak, though Pakistan maintained 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 the review period declined 7% to 330.19 million kilograms, influenced by reduced global demand, shipping delays 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 million kilograms 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 per kilo.

Source: Africa Business News (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka