Kenya produced 37.7 million kg of tea in January, up 48 percent from a year earlier, aided by wet weather in the first half of the month.

A report by the Africa Tea Brokers Limited indicates that crop production has increased in Nandi but this is expected to decline with the onset of the annual pruning in Kericho.

The Tea Board of Kenya said on Wednesday that January's production was also 27 percent higher than the same month of 2008, but 9 percent lower than the record 41.6 million kg produced in January 2007.

Kenya exported 39.2 million kg in January 2009, up 12 percent from a year earlier. Egypt was the leading buyer with 20 percent of exports, followed by Britain, Pakistan, Afghanistan and Sudan.

The board projects production to rise more than 15 percent this year, from 315 million kg of tea in 2009.

Kenya is one of the leading exporters of black tea in the world and the crop is the second biggest source of hard currency after horticulture.

However despite the increased production tea volumes at this week's auction at the Mombasa Tea Trade Centre have dropped by over 12,900 kilograms.

According to the weekly tea report from the Africa Tea Brokers (ATB) Limited participating countries have committed more than 7 million kilograms of tea with Kenya leading in the amount of tea on offer at more than 4.7 million kilograms of main grade tea..

Uganda has committed slightly more than 900 000 kilograms while Tanzania is offering 290,000 kilograms.

Other countries making offerings this week are Rwanda, Burundi, DRC and Malawi.

Zambia, Mozambique and Madagascar have not committed any tea for this week's auction.

The report says tea growing in Tanzania's East Usambara region is declining with hot, dry and dusty weather conditions being reported while in western Uganda, the crop is also declining with useful rainfall.