Agriculture Cabinet Secretary Mutahi Kagwe has moved to reassure tea farmers that the newly introduced export levy on tea will not affect the income they receive from their produce.
Speaking on the matter, Kagwe explained that the 0.8 percent levy, introduced by the Tea Board of Kenya, is aimed at strengthening the position of Kenyan tea in the highly competitive global market. He said the funds collected through the levy will be used to support marketing, branding, and promotional activities designed to increase the visibility and demand for Kenyan tea abroad.
The Cabinet Secretary emphasized that the levy will be borne by tea exporters and traders involved in international sales, not by farmers. He therefore urged growers not to worry about a reduction in their earnings, insisting that the government remains committed to protecting farmers’ interests and improving returns from the tea sector.
Kagwe noted that Kenya continues to be one of the world’s leading tea exporters, and maintaining a strong presence in international markets is essential for the industry’s long-term growth. He added that the levy is expected to raise more than KSh 1.4 billion annually, resources that will be invested in initiatives aimed at expanding market access and increasing the competitiveness of Kenyan tea.
The CS further pointed out that the levy rate is modest compared to charges imposed by some other major tea-producing countries, including Sri Lanka, arguing that the measure is in line with international practices within the tea industry.
His remarks come amid concerns from some stakeholders who feared that the additional charge could eventually be passed on to farmers. However, the government maintains that the levy is structured in a way that protects tea growers while helping to secure the future of one of Kenya’s most important export crops.
