Green gold has rarely been so poorly named: with an average price of less than $2 per kilo, prices have reached their lowest level since 2014, according to the East African Tea Trade Association (EATTA), the umbrella organization representing the interests of the sector in the sub-region.
In the port city of Mombasa, one of the world’s largest tea auctions, EATTA reported on Friday that the average price had even dropped to $1.80 per kilo during the last weekly sales. A worrying low price for the country’s tea sector, the world’s largest exporter of black tea (95% of production is sold internationally), which is one of the main sources of national currency along with tourism, flower exports and remittances from the diaspora. As a reminder, in 2018, the average price per kilo of tea was estimated at $2.58, with a production cost of around $2 according to Edward Mudibo, EATTA’s Executive Director, quoted by Reuters.