Agriculture Cabinet Secretary Mutahi Kagwe has defended the newly introduced tea levy, saying the policy is designed to strengthen Kenya’s tea sector through better marketing, research, branding and value addition initiatives aimed at securing higher earnings for farmers.
Speaking during a meeting attended by tea sector stakeholders, Kagwe clarified that the levy would only apply to tea exports passing through the Port of Mombasa and would specifically target overseas markets.
The CS said the funds collected would support sustainable financing of critical programmes intended to improve the competitiveness of Kenyan tea globally.
“The levy is meant to support farmers and enhance value addition so that Kenyan tea can fetch better prices in international markets,” Kagwe said.
According to the Agriculture Ministry, the levy will finance promotion and marketing of Kenyan tea, branding initiatives, research and development, as well as quality assurance and regulatory activities within the sector.
Kenya remains one of the world’s leading tea exporters, with tea serving as one of the country’s top foreign exchange earners alongside horticulture and tourism. However, the sector has recently faced pressure from fluctuating global prices, rising production costs and concerns over limited value addition.
Kagwe argued that increased investment in branding and processing would help Kenya move away from exporting bulk tea at lower prices and instead strengthen its position in premium global markets.
The CS also warned tea factory directors against mismanagement of farmers’ funds, calling for greater accountability and transparency in the handling of resources within the tea sector.
He stressed that the success of the reforms would depend on prudent use of the funds collected through the levy.
Tea sector reforms have become a key focus of the government as it seeks to improve farmer earnings and stabilise one of Kenya’s most important agricultural industries.
Principal Secretary Paul Rono and Senate Majority Leader Aaron Cheruiyot were also present during the meeting and praised the government’s efforts to reform and modernise the tea industry under President William Ruto’s administration.
Read: Counties Set to Receive Ksh10.5B Share in New Fuel Levy Road Funding Plan
>>> KEBS Rolls Out New Levy Targeting All Manufacturers Across Kenya
Leave a comment