NAIROBI, Oct. 8 (Xinhua) -- Kenya has abolished the minimum price for its tea sold at the region's main auction market in the port city of Mombasa in a bid to make the product globally competitive and boost exports, the East African Tea Trade Association (EATTA) said on Tuesday.
George Omuga, managing director of the EATTA, an association of tea exporters, brokers and packers, said in a statement released in the Kenyan capital of Nairobi that the country scrapped the minimum price following consultations among stakeholders.
In 2021, Kenya set the minimum price of a kilo of tea sold for the export market at 2.34 U.S. dollars in order to cushion farmers from losses. However, the regulation had unintended consequences as buyers shunned tea produced in the East African country, leading to stockpiling at the auction.
Following the abolition of the reserve price, EATTA, which runs the auction where tea from East African Community countries is sold, urged players in the value chain to ensure transparency.
"Observe ethical tea pricing practices to ensure that teas are not sold at prices that are below production costs," Omuga said.
Kenya's tea export earnings rose 18 percent in the first half of 2024 to hit 102.4 billion shillings (about 793.8 million U.S. dollars), boosted by increased shipments to major markets such as Pakistan, Egypt, Britain, Russia, and Saudi Arabia.
Tea is one of Kenya's main foreign exchange earners, alongside horticulture and tourism, with the country earning 1.4 billion dollars from tea in 2023.
