KTDA tea sales volumes rise by 20Million Kgs

By Monica MUEMA

Tea sales by KTDA-managed factories have risen 13.3% in the eight months to February 2023 compared to a similar period last year despite a tough market characterized by dollar shortages in key export destinations.

In the eight months from July last year to February this year, the factories had cumulatively sold 169.7 million kilos of tea compared to 149.8 million kilos for a similar period in the previous year.

Key markets for the agency including Pakistan and Egypt have been impacted by shortages of US Dollars impacting the offtake of the beverage from Kenya.

KTDA-managed factories produce high quality tea that fetches a premium price. We of course have a reserve price that reflects this quality and also ensures tea farming is a sustainable venture.

Strengthening of the US Dollar against local currencies in major consuming countries like Pakistan has put more pressure on their purchasing power,” KTDA Sales and Marketing General Manager Francis Muthamia said.

Following these challenges, the Agriculture ministry and KTDA recently successfully lobbied for classification of tea to an essential commodity in Pakistan meaning that tea importers in that country will be allocated dollars to import tea.

This is among other marketing efforts by the Agency that have resulted to the positive growth recorded during the period despite the challenging market.

The KTDA board introduced a reserve (basement) price of USD2.43 per kilo of made tea in July 2021, informed by a deteriorating market that had seen selling prices nearly slip below the cost of production.

Coupled with other reforms, the reserve price has since supported a recovery of the price of teas for KTDA-managed factories and led to improved payment to farmers.