Uganda Tea Prices Rebound 21 Percent at Mombasa Auction

MOMBASA, Kenya – Uganda’s tea sector is showing renewed signs of recovery, with auction prices rebounding 21% and absorption rates strengthening.

Sector players say this offers cautious optimism to growers and processors after years of volatility. Data from the Mombasa tea auction indicates that Ugandan tea prices have been steadily improving, even as stakeholders push for structural reforms and government intervention to secure long-term stability.

Victoria Ashabahebwa, chairperson of the Uganda Tea Association, said the sector is beginning to recover on the back of coordinated efforts by industry players and government support.

“Uganda teas experienced the best absorption at the Mombasa Auction in 2025, hitting 92%, which is a 3% improvement from the 89% recorded in 2024,” Ashabahebwa said.

According to her, Uganda tea’s absorption has remained steady at above 90%, and prices are also on a recovery path, though at a slow pace.

She noted that average prices rose by 17 cents (about 625 shillings) per kilogram, from 85 cents (about 3,125 shillings) in 2024 to $1.02 (about 3,876 shillings) in 2025, a 21% increase that outpaced gains in competing markets.

“The main grades category had a cumulative average price of $1.09 (about 4,142 shillings), while the secondary portion had a cumulative average price of 91 cents (about 3,458 shillings). In 2024, the main grade portion averaged 94 cents (about 3,455 shillings), and the secondary portion averaged 69 cents (about 2,536 shillings),” she explained.

The recent gains have been reinforced by strong performances in early 2026 auction sales, with some Ugandan tea brands beginning to rival traditionally dominant Kenyan producers.

“We saw in the just-concluded Sale 13 of 2026 some of the top-performing Uganda tea factories catching up with some of the Kenya plantation factories,” Ashabahebwa said.

She added: “Brands like Kabale, Kisoro, Kigezi, Kyamhunga, Bwindi, Tea Maria and Global Village had prices hitting above $1.48 (about 5,624 shillings), which was previously the low-end price for some Kenyan plantation marks. This is a very good sign of price recovery for Uganda teas.”

She attributed the progress to collective action following a multi-stakeholder meeting held on May 3, 2024, under the East African Tea Trade Association, where industry players agreed on reforms to improve competitiveness.

“Recommendations were made and tasks assigned to all stakeholders, who committed to play their part. We are proud that about 90% of those resolutions have been achieved,” she said.

Ashabahebwa also praised the government’s role in revitalizing the sector, noting that the Minister of State for Agriculture, Fred Bwino Kyakulaga, had fulfilled key commitments, including facilitating a high-level meeting with President Yoweri Museveni in 2025.

Government’s intervention plan

Speaking at a tea producers’ retreat in Fort Portal, Kyakulaga acknowledged the financial strain within the sector and outlined steps being taken to address long-standing obligations.

“When the former NAADS was rationalized into the Ministry of Agriculture, we inherited obligations to our nursery bed operators amounting to 70.3 billion shillings. I am proud to report that the ministry has already paid 50 billion shillings, leaving a balance of 20.3 billion shillings,” Kyakulaga said.

He added that the government is working with the Ministry of Finance, Planning and Economic Development to clear the outstanding balance and restore confidence among stakeholders.

“We have engaged the Ministry of Finance to release this balance, because every operator deserves closure and recognition for their contribution,” he said.

However, Kyakulaga acknowledged additional claims from nursery operators, including 25.2 billion shillings from those who supplied seedlings without formal contracts and 141 billion shillings in compensation claims for losses.

“These claims must be verified to ensure that every operator is treated fairly and every shilling is accounted for,” he said.

The minister also pointed to a major government commitment made in August 2025, when the president pledged 310 billion shillings to rejuvenate the tea sector.

“152 billion shillings was allocated for tea factories, 46 billion shillings for fertilizers, and 112 billion shillings for tea seedlings suppliers. This is not just about settling debts, it is about restoring confidence, strengthening partnerships and unlocking the full potential of Uganda’s tea industry,” Kyakulaga said.

Industry stakeholders say such interventions, combined with market reforms, could accelerate the price recovery. George Omuga of the East African Tea Trade Association recently emphasized the need for policy adjustments to sustain the gains in the sector.

“Bilateral agreements with the government of Kenya, when done, will ease non-tariff barriers affecting the tea sector. Market access programs should be established, and we recommend no VAT on local sales to encourage domestic consumption,” Omuga said.

He added that boosting local demand could reduce volumes at the auction and, in turn, support higher prices.

“This reduces the quantities at the auction and may, in turn, drive auction prices up. Industry regulation is also a priority for us to address issues of quality and standards,” he said.