The Mombasa Tea Auction

EATTA Membership

Strengths of the auction system

  • Everything is public. Weekly prices are set in an open forum, with great transparency about who is buying and at what prices.
  • Everybody pays the same price for the same tea. Large multinational companies have no ability to negotiate lower prices.
  • Smaller producers can participate: It is possible for any producer to market their tea to the local, regional and international market otherwise it would be very difficult and very expensive to do this.
  • Smaller buyers can participate: All producers sell a proportion of their tea at auction, so even the smallest buyers can have access through division of lots and hence smaller quantities can be bought.
  • It is highly efficient:  It is a very effective way of moving large volumes of tea from producers to buyers and helps producers’ cash flow.

What makes Mombasa Auction Centre Attractive?

  • It is dollar denominated making it convenient for the international tea buyer
  • It is the only multi origin auction centre handling tea from ten producer countries. This is a benefit as it offers the buyer variety of tea thereby more attractive
  • It is free from VAT since the tea sold through the auction does not attract taxes.
  • It is the auction Centre that most embraces innovation; including the electronic bill board tea sales payment system, live streaming that allows remote access to the auction proceedings by the producer from the comfort of their farm. The next move is the development of an electronic auction platform to enhance efficiency and transparency.
  • Payment for tea is assured and made by the tea buyers within 9 working days.
  • Access to the port thereby allowing efficient delivery to overseas customers
  • It runs every week throughout the year, except during the week of Christmas.

Exporter requirement

Member Functions

Tea Producers

Tea Producers

These are companies involved in the planting, farming, harvesting and production of tea.

Tea Brokers

Tea Brokers

Tea Brokers who auction in the Mombasa Tea represent producers who are located in different member countries. Collectively, the brokers form the Tea Brokers' Association, which functions under the Constitution Rules and Regulations of the East African Tea Trade Association (EATTA). 

Tea Buyers

Tea Buyers

Companies involved in buying tea, either in auction or by private sale, for the purpose of exporting that tea to various tea consuming countries around the world. This category also includes Buyers trading in the domestic market.

Tea Packers

Tea Packers

Companies involved in buying teas for the purposes of blending in order to create diverse qualities, and then packing Into convenient smaller wed units suitable for selling through retail outlets.

Tea Warehouses

Tea Warehouses

The Warehouseman's function, in keeping physical custody of the tea, is to safeguard the interests of both the Producer and the Buyer. In this respect, the Warehouseman acts at one time as the agent of the Producer and at another time the Buyer's agent.

Associate Member

Associate Member

 

Principles, Code of Conduct and Ethics

The East Africa Tea Trade Association (EATTA) Code of Conduct and Ethics is a commitment that is made by all of its Members to pursue their business activities in full compliance with all laws and to uphold the highest ethical transparent and professional standards, treating all our partners with integrity thus earning the trust of our customers, business partners, suppliers, Government and the community in general. These core values govern our operations and what we stand for and by observing the letter and the spirit of this Code we are affirming our source of pride as Members of the EATTA.

(i) Honest and Ethical Conduct

Each Member of the EATTA will maintain a high standard of conduct and character in both their professional and personal interests and will act honestly and ethically and will not be party to any illegal or improper activities. Members will ensure that those who work with them uphold the same standards through dialogue and training. 

(ii) Compliance with the Code of Conduct and EATTA Regulations

The EATTA Code and Rules and Regulations are supported by the Management Committee and are set to assure all industry stakeholders that they are bound by these Rules and confirm that business will be conducted with integrity. All Members therefore should understand and familiarise themselves with the Rules and Regulations of the EATTA and Members have an obligation to follow the standards of this Code and requirements therein.

(iii) Compliance with Government Laws, Rules and Regulations

All Members of the EATTA are committed to full compliance with all Government Laws, Rules and Regulations that may apply to their activities.  Any illegal activity, including fraud and corrupt practices is strictly forbidden and if proven will result in immediate cancellation of membership and notification to the relevant authorities and all parties concerned.

 (iv) Conflicts of Interest

A conflict of interest arises when a Member’s personal interest interferes with the interests of the EATTA and thus making it difficult for such a Member to perform their duties objectively and effectively. Members are requested not to use their positions or other means to obtain any improper personal benefit for themselves, for their families, or for any other person.  Members must declare to the EATTA Management Committee in writing that they have no conflict of interests. Any concerns as to possible conflicts should be declared in writing to the EATTA Management Committee for consideration.

(v)  Internal Reporting of Concerns

All Members are encouraged to forward their concerns of any knowledge of a potential suspected or actual violation of this Code to the Management Committee of the EATTA. Failure to do so is itself a violation of the Code.   Such concerns will be investigated confidentially and the EATTA will under no circumstances tolerate any form of retaliation or discrimination against any such Member.

(vi) Enforcement

The Management Committee will oversee the administration of EATTA’s Code and to respond promptly and professionally to any submissions or allegations that may be forwarded by its Members. The Management Committee will convene a meeting within five working days to review any reported violation and will liaise with the appropriate Sub-Committee(s). Deliberations of these meetings will be minuted and shared with the appropriate Sub-Committee(s) and the Management Committee will take appropriate action.

(vii) Certificate of Compliance

This Code of Conduct makes clear the adherence to the law and ethical behaviour. However, compliance requires a commitment by each Member who must satisfy this pledge as it will signal the Member Company’s commitment to act in accordance with the Code.  We, ……………………………….………….(Name of Company) certify that we have read the Code of Conduct and understand that we individually and severally must adhere to its standards of conduct and report promptly any action that appears inconsistent with these standards.

Application for EATTA Membership - General Guidelines

The East African Tea Trade Association (EATTA) is a voluntary membership organization that brings together Tea Producers, Buyers, Brokers, Packers and Warehousemen, affording them a disciplined environment in which to interact commercially, and to promote the best interests of the trade in Africa. EATTA has been in existence for over 50 years.

A membership application form and certificate of acceptance list is attached for your information.

Please note that detailed rules and regulations regarding the tea auction and trading by members are articulated in the EATTA Rule book. A copy of the booklet is available at the EATTA Secretariat at a cost of Kshs. 250/=.

Tea Board of Kenya’s Registration Certificate by Kenyan based Producer, Buyer, Broker, Warehouse and Packer applicants must be attached prior to being considered by the EATTA.

The Tea Directorate can be contacted on the following address:

P.O Box 20064-00200 Nairobi;
Tel 020 2536886;
Email: or P.O Box 903486-80100,
Mombasa, Tel 2314668/2313059,
Email: .

Please contact Tea Board of Kenya prior to submitting your completed application form to EATTA.

Applicants for Membership must be introduced to the Company by a Member (Proposer) and the introduction by the Proposer must be seconded by another Member of the Company (Seconder) both of whom must have been active Member(s) for a minimum period of three years prior to the application for Membership.

Note that the annual subscription fee is paid on a pro rata basis and is therefore determined by the month your application for membership is considered.

Criteria and Requirements for Proposer and Seconder

The Proposer and Seconder shall submit to the Company under separate cover a recommendation letter of the applicant’s suitability for Membership and in the case that the applicant is a corporate entity, the Proposer and Seconder must confirm to the Board that the Directors and Shareholders of the applicant are personally known to the Proposer and Seconder respectively. A Member may only propose or second a maximum of three applicants in any one year.

The Proposer and Seconder will be held fully responsible and liable to the Company for the applicant for a period of two years from the date of acceptance of the applicant as a Member.

Definition of the Various Membership Categories

  • Producers – Any person, firm or company, actively engaged in the growing and/or manufacture of tea, or as agents for tea growers and/or tea manufacturers in Africa.
  • Brokers – Any person, firm or company, established in Africa for the purpose of negotiating the purchase or sale of tea between Members of the Company.
  • Buyers – Any person, firm or company, engaged in buying tea in Africa.
  • Packers – Any person, firm or company, actively engaged in buying tea in Africa for retail.
  • Public Warehouses – Any person, firm or company, established in Africa warehousing teas being sold in accordance with the EATTA General Trading Rules and EATTA Trading Regulations.
  • Private Warehouses – Any person, firm or company, established in Africa warehousing teas being sold in accordance with the EATTA General Trading Rules and EATTA Trading Regulations. This are warehouses where the owner of the warehouses holds his own tea, part of which is transit tea or Non-Kenyan EAC tea.
  • Associate – Any person, firm or company not falling within the above Member Categories and is in the support business of the Company.
  • Management Agent - Any firm or company established in Africa that is appointed by a tea factory limited company through a specific management contract or agreement to perform or offer professional services.

Membership applications are reviewed and approved by Rules, Legal and Auction Conditions (RLAC) Board Committee and recommended for approval by the Board at its quarterly meetings.

The next RLAC meeting is scheduled for 16th February 2024, 12th July 2024 and finally 22nd November 2024.

Please complete the form plus payment (banker’s cheque for the correct amount of subscription and entrance fees) and forward to the Secretariat at least 2 weeks before the RLAC meeting if you wish to be considered for membership.

East African Tea Trade Association

January 2024

Mozambique

Membership & Affiliation

Kenya Chamber of Commerce
Federation of Kenya Employers
International Tea Committee
 
 
 
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