The East African tea industry is facing its most difficult year in recent memory. Prices at the Mombasa tea auction, the region’s central trading hub, have fallen steadily through 2025. Smaller producers such as Rwanda and Burundi are absorbing the hardest blows. While price swings are not new to the global tea market, the current slump is deeper and more sustained than usual, threatening both farmer incomes and the region’s export competitiveness.

East Africa’s Tea Sector Faces Price Pressures: Rwanda and Burundi Most Exposed

The Numbers Tell the Story

Data from the Mombasa auction paints a grim picture.

  • Rwanda’s average auction price dropped to US$1.61 per kilogram between January and August 2025, compared to US$2.84 per kilogram during the same period in 2024. That is a 43.3% decline, the steepest among all East African origins.

  • Overall Mombasa auction prices hovered between US$2.10 and US$2.40 per kilogram this year, down from last year’s highs.

  • Rwanda and Burundi teas have taken the sharpest hits, with buyers showing limited interest in their bulk offerings.

The auction reports show the same trend week after week—heavy supplies, fewer buyers, and sluggish bidding. The result is weaker average prices across the board.

Why Prices Are Falling

Several factors have converged to create the perfect storm for East Africa’s tea market in 2025.

  1. Weak buyer demand
    Major importers and blenders are buying selectively. Global oversupply, coupled with slower consumption growth in traditional markets, has pushed prices lower.

  2. Quality mix
    While premium teas still command respectable bids, the large share of plain or medium-grade teas has dragged down overall auction averages.

  3. Currency and inflation pressures
    Depreciating currencies in key buyer markets have reduced purchasing power. Importers are bidding cautiously to manage exchange risks.

  4. Market concentration
    Smaller origins like Rwanda and Burundi depend heavily on a few buyers. When those buyers cut orders or shift to larger producers, smaller suppliers feel the pain first.

The situation is similar to trying to balance on a stool with one short leg—the structure holds for a while, but sooner or later, it tips.

Impact on Farmers

The decline in prices is not just a spreadsheet issue; it hits farmers directly.

  • Lower auction prices mean smaller factory payments to smallholders and cooperatives.

  • Reduced earnings discourage investment in farm inputs like fertilizer and pruning, which lowers yields and quality.

  • Sustainability at risk—without timely support, many growers could abandon tea for other crops.

For a farmer who already struggles with rising costs of labor and inputs, earning less for every kilogram of leaf is a heavy blow. Some cooperatives are already delaying payments, a red flag for long-term viability.

The Data Gap: Auction vs. Export Figures

Not everyone agrees on how severe the crisis is.

The Rwanda National Agricultural Export Board (NAEB) reports higher average export prices than what auction data suggests. Their figures include direct exports and specialty teas sold outside the auction system.

This difference matters.

  • Auction data reflects what buyers pay in real-time, often for bulk, non-branded teas.

  • National export statistics include value-added or specialty products, which fetch higher prices.

Both stories are true, but they describe different parts of the same market. The challenge is ensuring farmers benefit from the higher-value segments rather than remaining tied to low-paying bulk sales.

What Needs to Change

The tea sector has survived many price cycles, but resilience will depend on strategic action, not luck. Here is what stakeholders should focus on:

  1. Improve transparency
    Farmers deserve clear, timely reconciliation between auction prices, factory sales, and final payments. Transparent reporting builds trust and accountability.

  2. Diversify marketing channels
    Relying on the Mombasa auction alone is risky. Governments and cooperatives should encourage private contracts, specialty markets, and certifications like Fairtrade or Organic.

  3. Invest in value addition
    Branding, packaging, and local processing can help East African producers retain more value. Selling packaged tea with country-of-origin branding can earn two to three times more than bulk exports.

  4. Short-term farmer support
    Governments should consider temporary relief measures, such as input subsidies, affordable credit, or fertilizer grants, to prevent farm abandonment.

  5. Promote regional collaboration
    Rwanda, Burundi, Kenya, and Uganda could benefit from a coordinated approach—shared marketing platforms, joint research, and harmonized quality standards.

A Warning and a Window of Opportunity

The Mombasa tea auction remains the heartbeat of East Africa’s tea trade. But when prices for Rwandan and Burundian teas fall by over 40 percent in a year, that heartbeat starts to stutter.

This downturn should be treated as a warning, not a death sentence. It is a chance to rethink how East Africa markets its tea, supports its farmers, and captures value beyond the auction floor.

The sector has the people, land, and expertise to bounce back. What is missing is a united, market-driven response to shifting global realities.

So, what is your next step? For policymakers, it is to act fast. For exporters, to innovate and differentiate. And for farmers, to stay informed and push for transparency. Because the cup of East African tea deserves to be valued for more than its weight—it should represent fair reward for every hand that grows and picks it.

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