Rwandan tea has continued to dominate trading at the Mombasa Tea Auction, fetching the highest prices among teas sold at the regional market.

Industry players attribute Rwanda's strong performance to its consistent quality, efficient supply chain and growing popularity among international buyers, who continue to seek premium teas despite uncertainties in the global market.

Data from the latest auction shows that Rwandan tea sold at an average price of $2.81 per kilogramme, significantly higher than Kenyan tea, which traded at $2.20, and Uganda’s, which fetched $1.26 per kilogramme.

Kenyan tea has struggled to maintain competitiveness especially after introduction of an export levy by the government in May this year.

The new fee has particularly affected teas marketed through the Kenya Tea Development Agency (KTDA) from the West and East Rift regions. Although transit tea remains exempt from the levy, Kenya recorded one of the highest volumes of unsold stocks at the auction this year as buyers increasingly sought cheaper alternatives from competing countries.

Traders say the higher cost of Kenyan tea has reduced its competitiveness in key export destinations, raising concerns among farmers, exporters and industry stakeholders.

Meanwhile, Southern African tea-producing countries, Tanzania, Malawi and Mozambique, continue to stay away from the Mombasa auction, preferring to market and sell their teas through brokers and direct trade arrangements with international buyers.

Analysts warn that unless Kenya addresses rising export costs and logistical bottlenecks, the country risks losing market share to regional competitors who can offer tea at lower prices.

This week, the auction recorded its highest volume of unsold tea this year, raising fresh concerns across the industry. Stakeholders blame the situation on the export levy and persistent logistics challenges linked to the ongoing conflict in the Middle East, which has disrupted global shipping routes.

According to the latest Mombasa Tea Auction weekly report, Sale 22 recorded a sharp increase in unsold tea after only 9.19 million kilogrammes out of the 12.52 million kilogrammes offered for sale found buyers. This translates into unsold 27 percent of the tea, the highest level recorded since the beginning of the year.

The trend has been steadily worsening over recent weeks. Sale 20 registered 22 percent unsold tea while Sale 21 recorded 23 percent.

”The impact has been particularly severe for KTDA-managed tea factories, which account for more than 60 percent of all tea traded through the auction.

Tea Buyers Association chairman Peter Kimanga warned that the levy will ultimately reduce farmers' earnings by increasing costs throughout the tea value chain."Since May 1, KTDA, which handles the largest percentage of tea from Kenya, has been paying substantial amounts in export levies every week. If the government does not suspend the levy, those costs will inevitably be transferred to farmers through lower returns and reduced bonus payments," said Mr Kimanga.

He said that tea exporters are paying about Ksh80,000 ($618) per container in export levy charges before the tea leaves the country.

Mr Kimanga noted that Pakistan, one of Kenya's largest tea export markets, had already raised concerns regarding the levy."Pakistan has protested the levy because it only affects Kenyan tea. Buyers will naturally compare prices and opt for tea from other countries. Kenyan tea remains one of the best in quality, but it risks becoming too expensive in the market," he said.

The requirement that all levies be paid before tea is exported has strained exporters, many of whom are already grappling with rising operational costs linked to freight, insurance and financing.

The government has defended the levy, saying it forms part of broader reforms intended to increase earnings for tea farmers.

Agriculture Cabinet Secretary Mutahi Kagwe said the measures are aimed at doubling smallholder farmers' earnings and increasing green leaf prices to Ksh100 ($0.77) per kilo by 2027.

© Copyright 2026 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).