Tea Buying Process
To buy Kenyan tea as a foreign entity, you generally have two paths: the Mombasa Tea Auction (the world’s largest black tea auction) or Direct Sourcing. Since 2024/2025, Kenya has tightened regulations via the Tea Act, making the process more structured and digital.
OPTION 1: The Auction Path (Mombasa Auction)
This is how the “big players” (like Lipton or Tata) buy. It is managed by the East African Tea Trade Association (EATTA).
The Workflow:
- Local Incorporation: Auricare International is already incorporated and compliant to buy tea on behalf of foreign clients.
- Licensing: Auricare International is a licensed Tea Buyer/Exporter from the Tea Board of Kenya (TBK) and ready to undertake consignments.
- EATTA Membership: Auricare International is registered and in good standing with EATTA.
- The Performance Bond: Auricare International as a requirement to bidding, has undertaken a Performance Bond (bank guarantee) equivalent to a percentage of the estimated purchase value to the TBK.
- Tasting & Bidding: Auricare International will undertake to receive, sample and bid on teas on behalf of foreign clients. Teas are sampled in “Tea Rooms” a week before. Bidding is done via the Integrated Tea Trading System (iTTS).
- Mondays: Secondary grades (Dust/Fannings).
- Tuesdays/Wednesdays: Primary grades (BP1, PF1).
Prompt Date: Auricare International will buy and deliver FOB or foreign clients can open a letter of credit or deposit funds within five days. The exchange requires payment in full within 10 working days (the “Prompt Date”) before the tea is released from the warehouse.
Option 2: The Direct Sourcing Path
This is faster and preferred by specialty or boutique buyers (e.g., those buying Purple Tea or Orthodox leaf).
The Workflow:
- Find a Licensed Exporter: Auricare International already operates as a Licensed Tea Exporter in Mombasa and Nairobi and act as foreign buyer’s “boots on the ground.”
- Direct Contract: Auricare International on behalf of foreign clients will negotiate a price directly with a factory (like a KTDA factory) or a private estate for supply of tea.
- Value Addition Requirement: Under the Tea Act 2020, there is a push for “Value Addition.” Auricare International will undertake on behalf of foreign clients to fulfil the mandate that at least 5% of the tea be packaged or processed further in Kenya.
- Logistics: Auricare International will undertake on behalf of foreign to handle the Phytosanitary Certificate (from KEPHIS), the Certificate of Origin, and the SGS quality inspections.
