Nairobi — The government has urged both the Tea Board of Kenya (TBK) and Kenya Tea Development Agency (KTDA) to provide details of all unsold tea held at the Mombasa auction to avoid a possible delay in payments to farmers.

This is after reports indicated that 20 million kilograms of tea produced in 2023 and earlier remain unsold and are stored in Mombasa warehouses, accruing high warehousing charges.

Additionally, 95.2 million kilograms of fresh teas were unsold as of the end of June 2024.

In a letter addressed to both KTDA and TBK by Prime Cabinet Secretary Musalia Mudavadi, the information regarding stocks of unsold tea currently being held in Mombasa will enable the government to find a lasting solution arising from the surplus of the commodity in order to stabilize the industry.

"I request your Office to provide the following information on Shelf life of the unsold tea, Space occupied, Stocks of unsold tea currently being held in Mombasa, Lessors of the warehouses, and Who will ultimately bear the cost of warehousing," noted Mudavadi.

The Prime CS also demanded information regarding the level of KTDA's indebtedness to the farmers per factory as of 30 June 2024.

"The accumulation of unsold tea hampers producers' ability to pay farmers on time, significantly affecting their income. This situation has resulted in accumulation of unsold teas at the auction, severely impacting prices and causing a market glut," he added.

Tea prices at the Mombasa auction were on a downward trend in 2022, forcing the government to establish a minimum reserve price of USD 2.6 for teas from the east of the rift and USD 2.4 for teas from the west of the rift.

This initiative was aimed at stabilizing the market and addressing the declining tea prices at the Mombasa auction.

Tea is one of the country's leading foreign exchange earners, second only to tourism, with an estimated annual value of Sh 188,737 million as per the Economic Survey, 2024.