The tea sector, the top foreign exchange earner in east Africa's largest economy, has been hit this year by frost and drought in major tea growing areas, as well as a stronger shilling after the central bank raised its key rate to stem high inflation and exchange rate volatility.

Mombasa-based Africa Tea Brokers (ATB) said in its weekly report that there was less demand for the 115,881 packages (7.42 million kg) on offer compared with 123,079 packages (7.94 million kg) last week.

ATB said Best BP1s sold at $3.66-$3.05 per kg, the same as last week. Best Pekoe Fanning Ones fetched $3.40-$3.17 per kg compared with $3.46-$3.16 per kg attained a week earlier.

High demand at the auction came from Egyptian Packers, as well as more activity from Yemen and other Middle Eastern countries. There was less activity from Pakistan Packers and the United Kingdom, ATB said in the report.