Business 9 August 2026 Daily Monitor (Uganda)
Kigezi Tea Farmers See Hope as Green Leaf Prices Double
Tea farmers in Uganda's Kigezi region are experiencing a significant boost as the price of green tea leaves has doubled, offering much-needed relief after a period of sharp declines. Source: https://www.monitor.co.ug/uganda/news/national/kigezi-tea-farmers-upbeat-as-green-leaf-prices-double-5552536
Tea farmers in the Kigezi region are experiencing a wave of optimism following a substantial increase in the price of green tea leaves. The price per kilogram has risen from Shs250 to Shs450, a welcome development for growers who had faced challenging times.
This price hike comes as a relief to a sector that struggled significantly in late 2023. Auction price collapses in Kenya had previously driven the farmgate price down to as low as Shs200 per kilogram, prompting many farmers to abandon or even uproot their tea plants. Some, like Francis Byamukama, shifted to other crops like maize and bananas, finding tea cultivation financially unsustainable due to high input and labor costs.
Industry stakeholders, including Caleb Kipande of the Southwestern Uganda Tea Nursery Bed Operators Association, view the price recovery as a vital incentive. While they hope for prices to reach Shs600 per kilogram, the current increase is seen as a significant motivator, encouraging farmers who had considered leaving the industry.
Kanungu District alone accounts for approximately 15,000 tea farmers, supported by several processing factories. The establishment of new factories in districts like Kisoro, Kabale, and Rukungiri aims to reduce the transport burden on farmers. However, the issue of soaring input costs, particularly fertilizer prices which have risen from Shs120,000 to Shs180,000 for a 50kg bag, remains a considerable challenge.
Naboth Amutuheire, General Manager at Kayonza Tea Factory, confirmed the price increase, attributing it to improved market conditions in Kenya. He noted that about 95 percent of previously abandoned tea gardens are now being rehabilitated. Despite this positive trend, factories face working capital shortages, impacting their ability to procure inputs, service loans, and pay workers.
Industry leaders are appealing for government intervention, including tax holidays for processors and exporters, and investment in rural infrastructure like roads and a stable electricity grid. There is also a call for the government to settle outstanding debts to nursery bed operators, which would help farmers and laborers.