Farmers urge Tea Board of Kenya to withdraw new levy

Farmers say that the tea levy will reduce their earnings. [File, Standard]

Tea farmers in Kericho have called on the Tea Board of Kenya (TBK) to withdraw the newly introduced 0.8 per cent tea levy.

They said the additional charge will further reduce farmers' earnings at a time when the sector is already facing low returns and rising production costs.

Led by Kericho Governor Erick Mutai, the farmers argued that the levy is an unnecessary burden and urged the regulator to focus on improving tea prices and expanding markets instead of introducing new deductions.

"The levy was imposed at the tea auction in the name of funding research. We ask, what research is this when our farmers are already suffering," said Dr Mutai.

The Tea (Levy) Regulations, which took effect on May 1, 2026, impose a 0.8 per cent levy on tea exports based on the auction or customs value, alongside a 100 per cent levy on imported bulk tea.

Speaking during Kericho Cooperatives meeting at Kericho Primary School, the governor demanded immediate withdrawal of the levy, saying farmers need better returns rather than additional charges.

"The addition of tea levies must stop. It is hurting our farmers. The tea levy must be scrapped so that our tea is sold competitively at the Mombasa Tea Auction and our farmers receive better returns on their investment," he said.

The governor also faulted the Kenya Tea Development Agency (KTDA) for what he described as poor marketing of tea from factories in the western Rift Valley.

"Farmers in the West of Rift earn bonuses as low as Sh13 per kilogramme while those in the East of Rift receive much higher payments. As we speak, large volumes of tea from the West of Rift remain unsold at the Mombasa Tea Auction. For the first time, Rwanda, a much smaller tea-producing country, has overtaken Kenya in terms of payments to farmers," he said.

Mutai urged KTDA to diversify Kenya's export markets beyond the traditional buyers in the Middle East, saying conflicts in some of the region's markets have continued to disrupt tea exports.

"There have been endless meetings and conferences to discuss tea issues. Those discussions must now come to an end. We need to see results that improve the livelihoods of our farmers," he said.

The Tea Board of Kenya has defended the levy, saying it is intended to restore funding lost after the previous tea levy was abolished in 2016.

According to the board, the charge is payable by exporters—not farmers—and the proceeds will be ring-fenced to support farmers' incomes, research, regulation, and infrastructure development in tea-growing counties.