The Government has defended the proposed 0.8 percent tea levy, assuring farmers that the new charge is designed to strengthen Kenya’s tea industry and increase returns to producers without reducing their earnings.

Government Defends New Tea Levy as Plan to Strengthen Kenya's Global Tea Brand

Agriculture and Livestock Development Cabinet Secretary Sen. Mutahi Kagwe said the levy will be paid by tea buyers rather than farmers, dismissing concerns that it would lower payments received by tea producers.

Speaking on the proposed reforms, the Cabinet Secretary said the levy is intended to address long-standing market distortions that have prevented Kenya from fully benefiting from the global value of its tea.

According to the Ministry, several countries, including Pakistan, India, Egypt, the United Arab Emirates, Iraq, Iran, Russia and China, import Kenyan tea in bulk before blending, repackaging and marketing it under their own brands.

The Government believes this practice has limited Kenya’s ability to build a strong international identity for one of its most valuable agricultural exports while allowing importing countries to capture a larger share of the value chain.

To address the challenge, the Government plans to strengthen the global recognition of Kenyan tea through a Geographical Indication (GI), a certification system that protects products linked to a specific country or region and promotes them as unique premium brands in international markets.

Officials say the initiative will help position Kenyan tea as a distinct global brand, enabling exporters to command higher prices while improving returns for tea farmers.

CS Kagwe said the proposed levy will finance activities aimed at increasing the competitiveness of Kenyan tea in international markets through branding, research, infrastructure development and market promotion.

He also dismissed concerns that the levy could reduce export demand, noting that Kenya’s tea continues to enjoy strong demand in international markets.

According to the Cabinet Secretary, 96 percent of the tea offered during last week’s auction was successfully sold, demonstrating continued confidence among international buyers despite ongoing discussions surrounding the proposed levy.

The Ministry said revenue collected from the levy will be invested directly in strengthening the tea sector.

Under the proposed framework, 50 percent of the funds will be allocated directly to farmers, while 20 percent will support tea research aimed at improving productivity, quality and resilience.

The remaining funds will finance infrastructure development, international marketing campaigns and other industry development programmes intended to increase the global competitiveness of Kenyan tea.

Kenya remains one of the world’s leading exporters of black tea, with the crop serving as a major source of foreign exchange and supporting the livelihoods of hundreds of thousands of smallholder farmers.

The Government says strengthening the country’s tea brand and increasing value addition are key priorities in ensuring farmers receive better returns while protecting Kenya’s position in the highly competitive global tea market.

Industry stakeholders are expected to continue consultations on the implementation of the levy as the Government seeks to balance farmer interests with long-term investments aimed at expanding market opportunities and increasing the value of Kenyan tea exports.

https://farmerstrend.co.ke/wp-content/uploads/2026/08/Government-Defends-New-Tea-Levy-as-Plan-to-Strengthen-Kenyas-Global-Tea-Brand-1024x683.jpghttps://farmerstrend.co.ke/wp-content/uploads/2026/08/Government-Defends-New-Tea-Levy-as-Plan-to-Strengthen-Kenyas-Global-Tea-Brand-150x150.jpgFarmersTrendFarming NewsAgriculture Ministry Kenya,Farmers Trend News,Geographical Indication tea,Kenya tea exports,Kenya Tea Industry,Kenyan tea branding,Kenyan tea news,Mutahi Kagwe,tea auction Kenya,tea farmers Kenya,tea levy Kenya,tea marketing Kenya,tea research Kenya,tea value addition KenyaThe Government has defended the proposed 0.8 percent tea levy, assuring farmers that the new charge is designed to strengthen Kenya's tea industry and increase returns to producers without reducing their earnings.Agriculture and Livestock Development Cabinet Secretary Sen. Mutahi Kagwe said the levy will be paid by tea buyers...New Generation Culture in Agriculture