[Photo: Kilimo News]
The East African Tea Trade Association (EATTA) says tea prices at the Mombasa auction continue to decline following the effects of the Russian war on Ukraine.
EATTA managing director Edward Mudibo says exporters to the Russian market who were absent at the auction last week, also failed to place any orders.
The decline in prices saw 17 percent of the teas withdrawn.
This is as reports show that Russia bought 29.61 million Kilograms of tea worth 6.25 billion shillings in 2021, from 25.14 million Kilograms worth 5.02 billion shillings in 2020.
“There was a reduced demand for the 192,659 packages for sale, with 17.67 percent of packages remaining unsold,” said Mudibo.
“Even if you are lucky to get tea to Russia, how would you get paid when there are sanctions that they cannot remit money from that country?” he further questioned.
Russia is facing sanctions by the US and European countries, including the exclusion of its capital – Moscow, from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) – a payment system that allows banks to transact with other financial institutions.
Russia’s war to Ukraine is also likely to affect other Kenyan exports.
Kenya exports to Russia and Ukraine its coffee, tea, edible fruits, plants, cut flowers, and melons among other products.
A newsmaker, reporter and anchor at Pearl Radio, Ndalilah Sharon is witty and savvy.
She is also a firm believer of Christ.