Kenya Tea Development Agency (KTDA) managed factories have recorded earnings of Sh772 million from this week’s tea sales, even as the sector grapples with a decline in demand and falling prices in the global market.

Data from the Mombasa Tea Auction shows that factories under KTDA sold just over 10 million kilograms of tea, marking a dip in both volume and value compared to previous weeks. Average prices dropped to $2.34 per kilogram, down from last week’s $2.45, reflecting weaker demand from key international buyers, including Pakistan, Egypt, and the United Kingdom.

Industry stakeholders attribute the decline to a combination of global oversupply, rising shipping costs, and currency fluctuations that have made Kenyan tea less competitive in some markets. Additionally, shifting consumer preferences in Europe and Asia toward specialty and herbal teas have added pressure on traditional black tea exports.

Despite the slowdown, KTDA says it remains optimistic, citing strategic interventions such as product diversification, improved quality standards, and exploring new markets in the Middle East and North America. The agency has also been pushing for value addition through packaging and branding to capture higher returns for farmers.

However, smallholder tea farmers—who depend heavily on stable tea prices—fear reduced monthly earnings if the current trend persists. Some have already begun exploring alternative income sources, such as horticulture and dairy farming, to cushion themselves from the volatility of the tea market.

Analysts warn that unless demand recovers in the coming months, Kenya’s tea industry could face its most challenging year since the COVID-19 pandemic, with ripple effects on rural economies that rely on tea farming as a primary source of livelihood.