Farmers earn Sh882 million at tea auction

Workers use tea harvesting machine on a farm in Kericho. [File, Standard]

Small-scale tea holder factories earned Sh882.4 million from the sale of 3,543,878kg at the Mombasa Tea Auction.

The payment to the 70 factories reflected a rise compared to the previous week, where the tea sellers only earned Sh772.7 million.

A report from the Tea Brokers East Africa Limited (TBEAL) shows that Mununga made Sh26.4 million after selling 69,968kgs, Gathuthi earned Sh10.5 million through a sale of 32,160kgs, Kiegoi pocketed Sh14.8 million after selling 46,730kgs, while Rukuriri and Gacharage made Sh18.2 million and Sh7 million respectively after selling 57,968kgs and 22,434kgs.

Others firms included Kathangariri which made Sh25 million (80,160kgs), Kimunye Sh48.5 million (156,967kgs), Imenti earned Sh16.3 million (53,232kgs), Mungania Sh12.3 million (40,240kgs) and Ngere Sh31.7 million (103,703Kgs). These were some of the factories that achieved the premium price of between Sh352 and Sh306 per kilogramme at the auction.

"The product at the auction fetched an average price of Sh305 per kg. In the East of the rift, the price was Sh370, while in the West of the rift, the price stood at Sh240," read the report in part.

The report further stated that factories that offered the highest volumes at the auction were Kimunye with 156,967kgs, Ngere (103,703kgs), Kionyo (122,053kgs), while Momul, Michimikuru and Tirgaga had 140,425kgs, 139,856kgs and 101,936kg respectively.

The report further indicated that Kapko Factory in the West of the rift achieved the lowest price of Sh158 per kilogramme of the 26,456kgs they had, thereby earning Sh4.1 million only.

Ngere Tea Factory Chairman James Githinji said the farmers within the Ngere catchment have been plucking quality tea, in a bid to fetch the best prices in the local and export markets.

"The board has been working hand in hand with the farmers to ensure we achieved the highest quality to satisfy the market," said Githinji.

In Embu, KTDA Zone six board member Enos Njeru said Rukuriri, Mungania and Kathangariri tea factories achieved the best prices in last week's weekly market.

"The agricultural team visits the farmers to ensure production of the best quality," said Mr Njeru.

The Tea Board of Kenya (TBK) Director Charles Kirigwi, urged the growers to continue producing quality tea if they are to fetch better prices.

"Kenya tea is of high grade therefore it attracts buyers from the international markets," said Kirigwi, an official representing East of rift.

In the auction, four countries offered 6,285,129 kilos, where Kenya auctioned 4,900,028kgs, from the KTDA factories and independent producers, Uganda had 846,525kgs, Tanzania offered 19,120kgs, while Rwanda had 470,556kgs as Burundi brought in 48,900kgs.

In the buyers category, 48 companies participated led by Aditya Birla which bought 12,060 packages, Global tea 11,420 packages, Mitchell Cotts acquired 9,160 packages, Mombasa Coffee bought 8,320 packages while James Finlay got 7,100 packages.