Tea Levy Drives Mombasa Auction Unsold Volumes to 2026 High

The Mombasa tea auction's Sale 22 recorded the worst unsold proportion of 2026, with approximately 27% of the 12.52 million kilogrammes put on offer finding no buyers, as more than 10.5 million kilogrammes accumulated in Mombasa warehouses since Kenya's new tea export levy came into force in May. Industry players are now calling on the Tea Board of Kenya to withdraw the Tea (Levy) Regulations 2026.

Sale 22 Records 2026's Highest Unsold Tea Volumes

The Tea (Levy) Regulations 2026 were gazetted on April 1 and entered into force on May 1, introducing a 0.8% levy on the auction or customs value of all tea exported from Kenya. Of the 12.52 million kilogrammes placed on offer at Sale 22, only 9.19 million kilogrammes found buyers, leaving 3.33 million kilogrammes unsold. Warehoused stocks in Mombasa climbed to over 10,554,071 kilogrammes. International tea buyers have reportedly been diverting purchasing volumes toward Rwandan and Burundian teas, which carry no comparable export levy.

What Comes Next

The Tea Board of Kenya faces mounting pressure to convene an emergency stakeholder forum with KTDA, factory managers, and exporters to assess the levy's impact and explore possible modifications.