Tea Auction Closes Over COVID-19 Pandemic

Kenya’s only tea auction Monday closed its door on March 23, 2020, over the government’s rule limiting mass gatherings. A move that the East Africa Tea Traders Association (Eatta) said was a safety measure to curb the spread of coronavirus.

“Further to our circular dated March 20, further developments have come to light with respect to the spread of the COVID 19 virus. It is in this regard that Eatta has taken a decision to postpone Auction-Sale 12, the Secondary auction of Monday, March 23 and the Primary auction of Tuesday, March 24,” said Eatta managing director, Edward Mudibo.

The closure of the auction risks cutting 95 percent of the country’s tea supply to the export market and pointing to a knockout on farmers’ earnings.

The auction attracts brokers, buyers, and officials who add up to more than 50 people.

Farmers will be the most affected by the action taken by Eatta with fears of tea surplus in the market, making it difficult for factories to process and store tea supplies from growers, affecting farmers’ earnings.

Farmers affiliated to Kenya Tea Development Agency (KTDA), which controls over 60% of the total tea market in the country, normally earn a monthly payment and a bonus paid at the end of every financial year.

“We have been struggling to break even and we thought even with the coronavirus, the trade will continue and we would maintain our workforce, but this seems not to be the case,” said Mr. Apollo Kiarii, the chief executive officer of Kenya Tea Growers Association adding that the closure of the auction is one of the worst hits on the sector in a long time.

As at the last sale held last week, the price of tea has plummeted to the lowest level in the last one year with a kilogram of the commodity trading as Sh185 on average.