EATTA insuperable history dates back to 1956, when a handful of tea producers, buyers and
brokers
came
together and founded the Association. They decided that the practice of consigning all the Kenya
and
East Africa’s teas to the London Auction in the United Kingdom was not a very wise thing to
continue
doing. “Why should Kenya not have its own auction system?” This was the pondering question in
the
minds of the determined pioneers of the tea trade.
They established Kenya Tea Export Auction, as was then known. However, the amount of tea offered
at
the auction was very small. The new auction mostly dealt with the secondary grades. Kenya’s
annual
production of tea was just 10 million kilos then and the bulk of it was still finding its way to
the
London Auction. This however never killed the morale of the local auction initiators.
The auction was done after every two weeks at Plantation House, along Haile Selassie Road,
Nairobi,
which remained the venue of the tea business until 1969 when EATTA members resolved to have it
relocated to Mombasa. The relocation of the auction from Nairobi to Mombasa was itself not
without
some controversy and strong opposition from a section of the members. For this reason, the
process
to relocate took nearly two years.
EATTA has continued to grow since then with current volumes traded rising to 10 million kilos
weekely.
EATTA has also proved its mettle as an effective self-regulator by successfully enforcing
quality
standards instead of depending on the government. The importance of the Mombasa Auction
continues to
grow. Containerized shipments introduced in the late seventies, created further interest from
international tea buyers who soon realized the advantages of quick and safe shipment to
destination.
Thereafter, the conversion of packing to easily palletized paper sacks stretch-wrapped and
containerized for shipment has been an additional incentive to exporters.
The introduction of bidding in US dollars in October 1992 has also proved a further strong
incentive
to producers offering tea in the Mombasa Auctions and additional quantities not only from Kenya
but
also from the other EATTA-member countries mentioned earlier. This allows payment for teas sold
in
US dollars ten working days from the date of sale and obviates any devaluation in local rates
and
ensures rapid payment in a stable currency.
