Kenya launches first orthodox tea auction to diversify exports, boost farmer earnings

KENYA – Kenya has launched its first-ever auction for orthodox teas, marking a significant milestone in the country’s efforts to diversify its tea portfolio and increase earnings for farmers.  

The new initiative allows specialty teas to be sold alongside traditional black cut-tear-curl (CTC) teas that have long dominated the Mombasa auction. 

Agriculture Cabinet Secretary Mutahi Kagwe, who presided over the launch, called it “a giant milestone for the country’s 650,000 tea farmers and a bold new chapter for our tea industry.” 

The inaugural sale featured 2,925 packages, about 91,800 kilos of orthodox tea, with bids expected between US$3 and US$10 per kilo, far higher than the current US$2.28 per kilo average for bulk CTC teas. 

“We are making history today,” Kagwe said. 

“Orthodox and speciality teas are the future, and they offer farmers better earnings and Kenya a stronger place in world markets.” 

According to Tea Board of Kenya (TBK) Chief Executive Officer Willy Mutai, Kenya has achieved sufficient volumes of orthodox teas to sustain sales at the auction. Producers were required to catalogue their teas by August 28, 2025, in preparation for the inaugural sale. 

TBK has already licensed 34 factories to handle pure orthodox teas, including Matunwa in Nyamira, Siomo and Ndarwetta in Bomet, and Choimim in Nandi. Other factories such as Githuki, Imenti, Tumaita, Kimunye, Besonik, and Chelal have also established separate production lines for orthodox teas, despite primarily running continuous compression (CDC) operations. 

The East Africa Tea Traders Association (EATTA), which operates the auction, has created a dedicated trading line for orthodox teas and introduced an African orthodox tea grading system presented on the global stage.  

The government projects that the auction will increase the proportion of value-added tea exports from the current 5 per cent to at least 50 per cent. The entire process will be conducted electronically, signaling Kenya’s shift toward modernisation in one of its key agricultural sub-sectors. 

Kagwe also revealed high-level talks to reopen the Iranian market, which was once a key buyer of Kenyan Orthodox tea but has faced trade hurdles in recent years. He urged traders to seize emerging opportunities in speciality markets long dominated by Sri Lanka, India and China. 

Orthodox tea, processed using traditional full-leaf methods, produces a range of teas including black, green, oolong, and white. Leaf grades vary by size, with whole leaves commanding the highest quality. 

The Mombasa tea auction is the world’s second-largest black tea auction by volume after Colombo, Sri Lanka, handling exports from Kenya and neighboring countries including Uganda, Tanzania, Rwanda, Burundi, the DR Congo, Malawi, Madagascar, and Mozambique. 

The launch comes as Kenya’s tea production fell 12.39 per cent to 283.25 million kilograms in the first half of 2025 from 323.30 million kilograms in the same period of 2024 due to prolonged dry conditions.  

Exports declined 9 per cent to 274.6 million kilograms, while local tea sales rose 12 per cent in June but dipped 2.6 per cent cumulatively in the first half of 2025. 

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