Uganda’s tea sector is earning renewed recognition on the international market, with 19 out of the 37 Ugandan tea brands trading above $1 (about shillings 3,650) per kilogramme at the Mombasa Tea Auction.
The latest market report by Venus Tea Brokers Ltd for Sale 23/25 shows a gradual upward trend in the performance of Ugandan teas, signalling a shift in market perception and improving quality from previously underperforming factories.
Kyamuhunga, trading under the brand KYTC, fetched $1.14 (about shillings 4,332); Bwindi, trading under the brand name KFCL, fetched $1.13 (about shillings 4,294); Mabale, trading under the brand MGTF, fetched $1.13 (about shillings 4,294); and Kahuna, trading under the brand name TMTL, fetched $1.10 (about shillings 4,180).
On average, however, Uganda’s tea fetched $0.99 per kilogramme (about shillings 3,613), a price point that, while close to the symbolic dollar mark, still raises concerns among farmers over profitability and sustainability.
“There is a global demand shift from black tea to specialty tea. We need to respond to this shift and hit a gold mine,” said Kennedy Rwaboona, a tea farmer based in Muhanga Town Council, Rukiga district.
Rwaboona’s sentiments reflect growing awareness within the farming community of evolving consumer preferences globally.
Specialty teas, such as herbal infusions, green teas, and organically grown varieties, are gaining traction in Western and Asian markets, often fetching premium prices.
Factory-level progress
A standout performer in this auction season was Mabale Tea Factory, a long-time struggler that has reversed its fortunes. Farmers and sector leaders lauded the factory’s remarkable turnaround.
“Mabale really has improved. I thank the current board and management for a job well done,” said Rev. Baker Magaragariho, a veteran agronomist and chairperson of the Rubirizi Tea Growers Association.
Adding to the praise, another farmer said, “What could be the magic behind this unprecedented improvement of late? We applaud Mabale for this achievement. For several years, they have been among the bottom three.”
This success story, insiders say, may be attributed to improved factory management, better plucking standards, and increased compliance with export grading protocols.
Growing demand, but low volume
According to Victoria Ashabahebwa, the chairperson of the Uganda Tea Association (UTA), the rise in auction prices mirrors improved factory standards and sustained market interest in Ugandan tea, albeit with some structural limitations.
“Compared to the same time last year, factories are fetching better prices. Demand for Ugandan tea is still growing. The volumes are, however, still very low, serving the same buyers, giving us a temporary competitive edge,” Ashabahebwa said.
The comment underscores a critical bottleneck in Uganda’s tea sector: limited export volumes, which constrain market leverage and long-term price sustainability.
While higher prices are good news, stakeholders said they are not yet backed by increased scale, meaning any significant market disruption could quickly erode these gains.
Ashabahebwa noted, “This is not a strategy, the market forces are applied. The removal of old teas from the auction last year has allowed the newer teas to compete fairly.”
Uganda’s place in the global tea trade
Uganda is Africa’s fourth-largest tea producer after Kenya, Malawi and Tanzania. It exports most of its tea through the Mombasa Tea Auction, which is dominated by Kenyan volumes.
Over the years, Ugandan teas have been perceived as lower-grade and have often trailed Kenyan teas in pricing.
However, the latest auction results suggest a slow but steady reversal in this trend. Enhanced quality control at the factory level, better agricultural practices, and diversification into value-added teas are beginning to bear fruit.
Still, farmers and industry experts agree that Uganda must strategically pivot to specialty and value-added teas, invest in branding, and explore direct export channels to markets like the European Union, the Middle East, and North America to move away from sole reliance on Mombasa.
Despite the encouraging auction prices, many stakeholders say these short-term wins must be backed by long-term structural changes, especially in farm-gate prices, infrastructure, extension services, fertiliser subsidies and climate-resilient agronomy.
Tea growers continue to complain about poor roads, lack of timely payments, expensive agro-inputs, and minimal government support, which erode their profitability even when market prices rise.
“Even when we hear that tea is trading above a dollar, it doesn’t mean farmers are celebrating. The benefits don’t trickle down enough,” one farmer said during a community dialogue in Kanungu district.
Experts also point to the need for regional branding. While Kenyan tea enjoys global recognition through names like “Kericho Gold” and “KTDA Tea”, Uganda lacks strong international brand identity for its teas.
The fact that 19 Ugandan tea brands breached the $1 (sh3,650) per kilogram mark at Mombasa is a morale booster for the sector and shows potential for higher returns. But the gains remain fragile according to Ashabahebwa.
“We urgently need targeted interventions to build a more sustainable future for the tea industry. Key concerns include the quality of our tea, access to fertilisers, and working capital for producers. KTDA’s high volumes at the Mombasa auction remain a persistent challenge that continues to suppress prices. We call on the government to make a firm commitment to supporting the sector. The proposed interventions are designed to enhance the value of our tea and strengthen our competitiveness in the international market,” said Ashabahebwa.
Without structural improvements in the tea value chain, from production to processing, logistics to marketing, these occasional wins may not be enough to transform the lives of Uganda’s over 1.2m people dependent on tea.
Farmers said that if they receive a sh40b fertilizer subsidy, each farmer could buy fertilizers for one season to rejuvenate their gardens. Currently, they said that most tea gardens are overgrown and of poor quality and noted that fertilizers are crucial for farmers to re-engage in tea cultivation.
Due to the “unviability” of the tea business, many farmers said they have been forced to abandon or uproot their gardens due to plummeting farm gate prices of green tea leaves, which have dropped to sh150 per kilogram from sh200 at the beginning of the year and sh250 last October. Currently, in some cases, prices have plunged to sh120 per kilogram.
