The weekly Mombasa Tea Auction held on the 18th and 19th May 2020 recorded 12.4 million kilograms of tea offered for sale. The amount of tea on offer increased from 7.4 million kilograms offered for sale during the same period last year.
Of all the tea offered for sale, 11.1 million kilograms were sold compared to 6 million kilograms sold in the same period last year.
The sale recorded a decline in prices, with a kilogram selling at an average of $1.87, compared to $2.18 for the same period last year.
Last week, the Competition Tribunal overturned an order from the Competition Authority of Kenya (CAK) seeking to stop brokers at the Mombasa Tea Auction from price-fixing. Therefore, brokers will continue getting a 1.25% commission on the value of tea that goes through the auction, earning them KSh1.4 billion annually in fees.
However, the Tribunal mandated the Tea Directorate to approve any changes in brokerage fees. The exemption will only be allowed for two years from the date of delivery of the judgment.