Rwanda’s tea is outpacing Kenyan tea at the Mombasa auction by a significant margin, fetching an average of Sh354.75 per kilogram compared to Kenya’s Sh299.28 per kilogram — a gap that has industry stakeholders sounding the alarm over the health of one of Kenya’s most important export commodities.
In the most recently concluded auction, Kenya put forward 9,424.6 tonnes of tea that collectively generated Sh2.8 billion, of which Sh2.1 billion came from Kenya Tea Development Agency (KTDA) factories. But the headline figures mask a more troubling reality — of the 10,300 tonnes offered by KTDA-managed facilities, only 6,600 tonnes actually found buyers, while 1,600 tonnes were withdrawn unsold after pricing negotiations between sellers and buyers broke down.
Rwanda, by contrast, exported 552 tonnes at the same auction and walked away with Sh196.1 million. Within Kenya’s own market, performance was sharply uneven — Mununga Tea Factory recorded the highest price at Sh399.9 per kilogram, while Kapsara Tea Factory sold at the bottom of the market, averaging just Sh254.13 per kilogram.
Industry leaders are placing much of the blame on a new levy of Sh2.28 per kilogram on exported tea, which the government introduced in May. The charge, projected to bring in roughly Sh1.2 billion annually, is widely seen as having made Kenyan tea more expensive for international buyers, pushing them toward cheaper alternatives from neighbouring producers.
Market observer Peter Kamore has called on the government to act before the damage becomes irreversible. “There is a need for an audit to save the tea industry from losing the market as the government can waive the levy projected at Sh1.2 billion per year,” Kamore said, urging policymakers to carefully weigh short-term revenue gains against the sector’s long-term viability.
Trade association officials have confirmed that the shift is already happening — buyers are increasingly turning to Rwanda, Uganda, and Tanzania as they look for better-priced tea. Kenya, which has spent decades building its reputation as one of the world’s leading tea exporters, now finds itself at risk of ceding hard-won market share to regional rivals who face no comparable levy burden.
The combination of unsold stock, a widening price gap with Rwanda, and restless buyers shopping elsewhere puts mounting pressure on both the government and KTDA to respond quickly. The decisions made in the coming months over the levy and broader market strategy could determine whether Kenya manages to halt its slide — or continues losing ground in a market it once dominated.
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