Dry weather hurts Kenya's Jan tea output

NAIROBI: Kenya tea production fell a record 4.5 percent to 35.9 million kg in January compared with the same month a year ago due to hot, dry weather, while exports also fell, the Kenya Tea Board (KTB) said on Thursday.

KTB data showed exports by the world's biggest exporter of black tea fell 14 percent to 33.6 million kg in January.

Sales at the Mombasa auction fell three percent to 22 million kg. Tea was the top foreign exchange earner in east Africa's biggest economy last year when it raked in $1.2 billion.

"Lower sales were attributed to less buying interest particularly by Egyptian packers during the last three auctions of the month owing to political unrest in Egypt," KTB said in a statement.

KTB said it expected Egypt to reclaim its place as lead importer of Kenyan tea in coming months after former President Hosni Mubarak stepped down following nationwide anti-government protests.

The average price for Kenyan tea at the Mombasa auction ticked up to $3.18 in January from $3.0 a year earlier.

Tea prices at this week's auction edged up on demand from Egypt and Pakistan.

Best BP1s sold for $3.52-$3.90 which was slightly higher than the $3.50-$3.86 fetched at last week's sale, Africa Tea Brokers (ATB) said in a report.