MURANG’A, Kenya, June 9 – Tea farmers in Murang’a County have opposed a proposed 0.8 percent levy on tea exports, arguing that the additional charge could reduce the competitiveness of Kenyan tea in international markets.
The farmers say the levy will increase the cost of Kenyan tea exports, making products from competing tea-producing countries more attractive to global buyers.
The proposed Tea Levy Regulations, 2026, seek to introduce a 0.8 percent export levy on tea based on the auction value or customs value for direct sales.
Farmers warned that the new charge could ultimately be passed down the value chain, reducing returns to growers at a time when the sector is already facing rising production costs.
They further argued that any increase in export costs risks undermining Kenya’s position as one of the world’s leading tea exporters by making local tea more expensive compared to regional competitors.
If implemented, the government expects to raise about Sh1.4 billion annually from the levy to support development of the tea sector, including market promotion, research, quality assurance, and infrastructure projects.
However, growers are urging the government to explore alternative funding mechanisms that do not increase the cost of exporting tea or erode farmers’ earnings.
