Kenya continues to grapple with stagnant tea stocks, driven by the high volumes of the commodity carried over from previous years, which could potentially impact farmers' earnings in the just concluded financial year.

At the latest auction in Mombasa, the world's second-largest trading market for black tea, over half of the tea offered was withdrawn after buyers rejected it due to prices deemed too high relative to its value.

Data from the auction revealed that 54 percent of the tea, equivalent to 119,280 packages, was pulled from the auction floor.

Kenya, the world's second-largest exporter of black tea, has been struggling with significant stockpiles since the government introduced a minimum price of $2,43 two years ago for teas that are produced by the Kenya Tea Development Agency (KTDA).

Critics argue that linking the minimum price to production costs rather than the intrinsic value of the tea was a misstep.

Industry experts also note the challenge of setting a uniform market price due to the varying quality of teas from different regions.

The Kenya Tea Development Agency (KTDA) has been managing over 100 million kilograms of carryover tea stocks, some dating back two years, as the minimum price discourages buyers from purchasing the pricier product.

In response to the growing crisis, the Kenyan government held an urgent meeting with traders and the KTDA a fortnight ago to assess the situation and seek solutions.

However, the resolutions from this meeting have yet to be implemented, while traders continue to call for the immediate suspension of the minimum price.