Low quality teas and mismanagement have led to over 100 million kilos of tea stockpiled at the Mombasa Tea Auction, far above international requirements. The auction, second only to Colombo in Sri Lanka, is struggling to sell off tea from previous years, with traders and government pointing fingers at market mismanagement and industry cartels. Kenya’s Deputy President has accused the Kenya Tea Development Agency of mishandling funds meant for farmers, leading to poor returns. Excessive foreign travel expenses by the agency have raised concerns about fiscal responsibility.
With an oversupply of low-quality tea, Kenya suspended the minimum reserve price, causing a drop in the value of Kenyan tea compared to Rwanda’s higher-priced product. Rwandan tea has seen increased demand and profitability, while other regional teas also face challenges due to logistical issues during the pandemic. Despite efforts by the East African Tea Traders Association, the auction’s participation has decreased, impacting tea trade from African countries.