Key points
- Massive backlog of unsold tea in Mombasa warehouses.
- Government demands answers from TBK and KTDA.
- Delayed payments to farmers causing financial hardship.
- Tea industry facing a critical moment with potential long-term consequences.
Kenya’s tea industry is facing a severe crisis due to a mounting pile of unsold tea leaves at the Mombasa auction. The government has stepped in, demanding answers from key industry players about the extent of the problem and its potential solutions.
According to reports, a staggering 20 million kilograms of tea produced in 2023 remains unsold, and an additional 95.2 million kilograms of fresh tea is currently sitting idle in Mombasa warehouses. This surplus has led to increased storage costs and delayed payments to farmers.
Prime Cabinet Secretary Musalia Mudavadi has written to the Tea Board of Kenya (TBK) and Kenya Tea Development Agency (KTDA) demanding detailed information about the unsold tea, including its shelf life, storage location, ownership of the warehouses, and the responsibility for warehousing costs.
The government is concerned that the glut of unsold tea is causing a downward spiral in prices and preventing farmers from receiving timely payments. This situation is particularly dire given the significant role of tea in Kenya’s economy, as the country’s second-largest foreign exchange earner after tourism.
In an effort to stabilize the market in 2022, the government introduced a minimum reserve price for tea, but the problem persists. As the crisis deepens, there are growing calls for a comprehensive strategy to address the oversupply and protect the livelihoods of tea farmers.
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