The Kenya Tea Development Authority (KTDA) has reported a 6.3% decline in green leaf deliveries over the past three months, forcing factories to operate below capacity. In the period between July and September this year, KTDA-recorded 212 million kilograms of green leaf, compared to 225 million kilograms in the same period last year. This decline is attributed to delayed rains across the tea-growing belts, which have reduced green leaf production.
The impact of the delayed rains is evident in various counties, with factories in Kiambu recording a 21.8% decline, followed by Kisii at 10.4%, and Lower Murang'a (Gatanga, Kigumo, and Kandara) at 10.3%. Other affected counties include Meru at 9.2%, Nyamira at 7.3%, and Kirinyaga at 0.9%. The least affected counties were Nyeri at 2.6% and Embu at 6.6%. Several factories have registered a sharp decline in production, including Kagwe at 32%, Theta at 31.2%, and Nduti at 23.7%.
The decline in tea production has affected not only small-scale farmers but also multinational companies managing tea estates in Kiambu County and parts of the Rift Valley. These companies have been forced to reduce their workforce due to the reduced output. In 2024, during the same period, farmers produced 250 million kg of green leaf, compared with 260 million kg in 2023. The KTDA report indicates that delayed rains and extreme cold over the past three months worsened the situation, reducing the volumes available for sale through direct overseas sales or the Mombasa Tea Auction.
Farmers across the counties have reported being unable to apply the provided fertilizers due to insufficient rain. James Mugo, a farmer in Kirinyaga, said he was forced to store the fertilizers provided by the KTDA due to insufficient rain to support the application as recommended by the agriculture extension officers. Mugo added that the production of green leaf has declined due to the effects of climate change and that the situation is expected to improve with the El Niño rains.
Reports from tea auctions also confirm a reduced supply of the commodity in the market. This week's factories offered 2,656,230kg, compared with the previous 2,712,903kg. The East African Tea Trade Association (EATTA) report shows that in September, factories supplied 10.1 million kg, and to date in October, they have sold 8.2 million kg through the Mombasa Tea Auction. The reduced supply has led to increased demand for premium tea, with prices appreciating between July and September.
EATTA Managing Director George Omuga said that with reduced supply, demand for premium tea is rising. He noted that the prices for premium teas have appreciated due to increased demand relative to supply from the processors. The decline in tea production has significant implications for the 650,000 farmers affected, causing a cut in factory output and affecting the available tea for marketing.
The tea industry is a significant contributor to Kenya's economy, and the decline in production is expected to have far-reaching consequences. The KTDA and other stakeholders are working to mitigate the effects of climate change on tea production, but the situation remains challenging. The El Niño rains are expected to improve the situation, but it remains to be seen how the tea industry will recover from the current decline.
Key points
- * Delayed rains have reduced Kenya's tea output by 6.3% in three months. * The decline in tea production has affected 650,000 farmers and forced factories to operate below capacity. * The reduced supply of tea has led to increased demand for premium tea, with prices appreciating between July and September.
