A tea-picker at work. PHOTO/FILE
Kenya’s tea industry, one of the country’s most valuable exports, finds itself in a heated debate over the wide price disparities between tea grown on either side of the Rift Valley.
Tea farmers from the eastern regions, particularly the fertile Mt. Kenya area and the broader Eastern Rift, are receiving higher prices and bonuses at the Mombasa auction, while their counterparts in the western parts of the country; including Kericho, Bomet, and Kisii are raising concerns over lower payouts.
This divide has sparked frustration, accusations of mismanagement, and calls for reform, but an approach grounded in sobriety and due diligence is necessary if an amicable solution is to be found.
At the heart of this controversy lies the stark price difference between the two regions. While the East enjoys a premium at the Mombasa tea auction, the Western Rift’s tea producers face a more challenging market, with prices lagging behind despite producing a substantial portion of Kenya’s tea.
Some argue that mismanagement by the Kenya Tea Development Agency (KTDA), which controls much of the smallholder tea production, is to blame for the situation. However, allegations of corruption or unfair practices need to be scrutinised with caution, as the situation is much more nuanced than a simple case of institutional failure.
One of the primary factors contributing to the price differences is the quality of the tea produced in each region. The Mombasa auction is a highly competitive market, and buyers are generally willing to pay a premium for tea that meets strict quality standards.
Tea grown in the Eastern Rift, particularly from the Mt. Kenya area, is renowned for its superior quality. This is largely due to the favourable environmental conditions in the region: cooler temperatures, higher altitudes, and consistent rainfall—that produce a tea known for its bright liquor, robust flavour, and aromatic characteristics.
These factors make Eastern Rift tea highly sought after by global buyers, especially in premium markets like the UK and Middle East. The ability to blend this tea with other types to create consistent, high-quality blends is a crucial factor in its attractiveness at auction.
In contrast, the Western Rift, with regions like Kericho and Bomet, has a warmer climate and lower altitudes, which often result in tea that lacks the same vibrancy and aromatic intensity.
While the tea from this region is still considered of good quality, it is not consistently able to meet the high standards set by buyers in the same way that tea from the East can. The difference in climatic conditions and the impact this has on the flavour and aroma of the tea are important considerations in understanding the price disparity.
The way tea is cultivated and harvested is also a significant factor in determining quality and, by extension, price. Tea from the East of the Rift tends to benefit from a more consistent and refined plucking process. Farmers in this region are more likely to follow the recommended practice of plucking “two leaves and a bud”: the youngest, most tender leaves, which is essential for producing high-quality tea.
In contrast, the Western Rift’s farmers are often focused on higher-volume production. This sometimes leads to irregular plucking practices, where older, less flavourful leaves may be included in the harvest. As a result, the quality of the tea can be inconsistent, which can depress auction prices, especially when competing with the consistently high-quality tea from the East.
Another factor contributing to the price disparity is the issue of carry-over stocks. In times of surplus production, particularly following poor sales or high stock volumes, factories in the Western Rift may struggle to sell off excess inventory.
KTDA chairman Chege Kirundi. PHOTO/FILE
This can force them to lower reserve prices to clear the stock, which in turn affects the overall price of tea from the region. This challenge is compounded by the volatility of the global tea market, where fluctuations in demand from key markets like Pakistan and the Middle East can heavily influence auction prices.
While the global market’s dynamics are outside of local producers’ control, the uneven distribution of tea stocks can exacerbate the regional price gap. This market unpredictability only reinforces the price disparities that have become a point of contention between the regions.
The KTDA’s role in managing the auction system has come under increasing scrutiny. Some farmers in the West of the Rift have alleged that local brokers or private factory owners may be engaged in practices that artificially depress prices, potentially by discouraging farmers from selling to the KTDA.
Accusations of mismanagement and a lack of transparency in the payment system further fuel the belief that the Western Rift is being unfairly treated.
One of the key grievances is the perceived lack of investment in infrastructure in some Western Rift factories, which raises operational costs and reduces the amount of money that can be paid to farmers.
In contrast, some Eastern Rift factories have made significant investments in infrastructure, such as energy-saving measures that lower production costs and improve profit margins, thus enabling them to offer higher prices to farmers.
This has created a sense of inequity, as farmers in the West of the Rift feel they are working under less favourable conditions, with less access to capital and resources, while their counterparts in the East benefit from higher investments and better market access.
The growing divide between Kenya’s tea-growing regions requires a careful, fact-based approach to resolve. While market forces such as climate, quality, and production practices will always play a role in determining tea prices, addressing structural inefficiencies within the tea sector is equally important.
The KTDA must take greater steps to ensure transparency in its operations, improve the management of tea auctions, and invest in infrastructural development in the Western Rift to level the playing field for farmers.
Additionally, there is a need for greater accountability from local brokers and private factory owners to prevent price manipulation and foster fair competition.
By increasing transparency, setting clearer timelines for payments, and exploring new avenues for value addition in tea processing, the industry can move towards a more balanced and equitable distribution of profits.
However, while these reforms are essential, it is also important for all stakeholders—farmers, the KTDA, and government regulators; to adopt a sober and diligent approach. Knee-jerk reactions and blame-shifting will not solve the underlying issues.
Instead, a long-term vision that considers both the environmental and structural challenges facing the tea sector is required. Only through collaboration and due diligence will Kenya’s tea industry remain competitive in the global market and ensure fair returns for all farmers, regardless of their region.
The road ahead is not easy, but with a concerted effort to address both quality and structural challenges, Kenya’s tea industry can find a path towards greater equity and continued success on the global stage.
