Mombasa Tea Sale Rules Tighten for KTDA Operations

Organisers, brokers and buyers at the regional tea auction in Mombasa have been directed to deposit cash proceeds from sales directly into the bank accounts of 54 Kenya Tea Development Agency‑managed factories within 14 days of each transaction, in a move aimed at tightening compliance with the Tea Act 2020. The directive follows findings that some KTDA factories were participating in the auction through management agents in violation of statutory requirements, prompting the Tea Board of Kenya to insist on direct registration with the board and auction organiser to ensure oversight and monitoring of auction processes.

Tea Board chief executive Williy Mutai underscored that the auction organizer must establish an accessible electronic trading platform for all players in the tea value chain and that brokers and buyers must adhere to remittance timelines, with non‑compliance attracting penalties under the Act. The compliance push comes as the industry grapples with challenges including a glut of tea at the Mombasa auction and a significant drop in payments to growers, which fell from Sh89.29 billion to Sh69 billion in the 2024‑2025 financial year amid market pressures and exchange rate dynamics.

KTDA is pursuing value addition with a focus on orthodox tea to boost farmer earnings and tap new markets in countries including Japan, Russia, China and parts of Europe, even as black CTC tea continues to serve traditional export destinations such as Pakistan, the United Kingdom and Egypt.