Kenya tea prices rise to new record

Tea is one of the country’s key foreign exchange earners. Photo/FILE

Kenyan tea prices jumped to a new record high at this week's auction on renewed demand, brokers said on Wednesday.

The average price for Best BP1s leapt to $5.02 per kg from last week's record of $4.47 per kg and another high of $4.31 per kg at the previous sale.

"Brighter BP1's met very strong competition and gained $0.34 to $0.66," a regular market report by the Africa Tea Brokers said.

Tea prices in the world's biggest exporter of black tea have hit record highs this year as buyers stock up over fears that drought in the country would affect production.

Forecasts of better than average rains due to begin in October have failed to dampen prices at the Mombasa auction for the best teas, although prices for some lower quality grades fell.

"There was good but irregular demand for the 77,529 packages (4.9 million kgs) on offer with many teas remaining unsold (19.81 per cent)," the report said.

Best BP1s fetched $5.06 - $5.01 per kg up from $4.72-$4.22 per kg, at the last sale, while top PF1s changed hands at between $3.58-$3.334 per kg down from $3.70-$3.50 per kg last week.

"Kazakhstan was dominant especially on best BP1s while Pakistan Packers, Yemen and other Middle Eastern countries showed more interest with Egyptian Packers quieter at the start but was more active towards the close," it said.