A past tea auction in Mombasa. [Photo/ businessdailyafrica.com]
Prices at the Mombasa tea auction have hit a seven-month high following uncertainty by traders ahead of the October 26 presidential election.
According to statistics released by the East African Tea Traders Association (EATTA), a kilogram of tea was sold for the price of Sh 310 on average at the auction this week compared to Sh297 last week.“The average prices have been good enough and they are reflective of good demand as traders want to have enough stocks,” said Edward Mudibo, EATTA managing director.Several traders expect that the commodity will continue to sell at Sh300 per kilo as elections are just around the corner.The Tea Directorate has linked the rise in prices to the uncertainty of the outcome of the presidential poll.Mudibo says a majority of individuals have been trading for more than Sh400 which has helped improve the commodities’ price performance at the auction.There is a lot of anxiety surrounding the outcome of the presidential poll and traders are keenly waiting to see how it unfolds.