Falling tea prices in Kenya

In a rather unsavory turn of events, tea enthusiasts in Rift Valley might need to reconsider their life choices, or at least their beverage preferences, as the region’s tea factories are playing the price adjustment card. Brace yourself for impact: farmers are about to earn a mere Sh19 per kilogram of those coveted tea leaves. Yes, you read it right—Sh19! It’s not a typo; it’s the bitter reality.

The drama unfolds with factories firing off correspondences faster than you can steep a teabag. Chemusian Tea Estate Ltd is the messenger of doom, declaring a price drop effective December 1, 2023. Why? Blame it on the tea market’s perpetual downward dance, as if it’s practicing for a tea leaf tango competition.

Kuresoi Tea Factory is not one to be outdone in this gloomy waltz. They’ve cut their green leaf price from Sh28 to Sh25, making us wonder if tea leaves are now the new currency in Rift Valley. Meanwhile, Kisyet Tea Limited joins the price-cutting party, reducing payouts to a paltry Sh24 from a relatively less paltry Sh27. Their excuse? The ever-dropping beats of the Mombasa auction.

Hold onto your teacups, there’s more. Greenfields Tea Factory Limited takes a different spin, adjusting their payout to Sh25 gross, inclusive of a one-way ticket for the tea leaves. Why? Apparently, the international tea markets have decided to throw a global tea party, and it’s not as uplifting as you might think.

These tea factories, not ones to miss a brewing storm, promise to keep an eye on the tea market’s soap opera and adjust their payouts accordingly. It’s like waiting for the plot twists in your favorite TV series, only this time, it involves your daily cuppa.

Speaking of twists, the Mombasa auction has taken its own dramatic turn. Tea prices are now sashaying at an average of $2.4 (Sh367), a far cry from the dazzling high of $2.74 (Sh419) back in February 2022. The Kenyan shilling, trying to be the unsung hero, weakens and tries to salvage the situation by boosting local currency revenue. Nice try, shilling, but we still need more zeros in those payouts.

Hold onto your saucers because, according to the World Bank’s latest Commodity Markets Outlook, global tea prices are expected to do a limbo and decline by two percent next year. The culprits? Too many tea leaves in the pot, courtesy of India and East Africa, and a lackluster demand from tea enthusiasts, especially those sulking in Iran.

So, dear tea aficionados, as you sip your cup of comfort, remember that behind the scenes, there’s a tea market tango, a price-cutting cha-cha, and a global tea party that might leave a bitter taste in your brew. Stay steeped, folks!

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Bye-bye M-PESA for Unregistered Users

Safaricom, Kenya’s top telecom company, has made a change in its M-PESA…

Increasing Corporate Dollar Deposits:

Business corporations have significantly increased their share of dollar deposits in banks,…

Confidence in Kenya’s Sukuk Bond Success:

Standard and Poor’s (S&P), a global credit ratings agency, expresses confidence in…

MultiChoice Snubs Canal+’s $2.5B Offer

MultiChoice, the popular pan-African broadcaster valued at $2.15 billion, has politely declined…