Tea Board Defends 0.8% Export Levy, Says Move Will Protect Kenya Tea’s Global Competitiveness

By Irene 

The Tea Board of Kenya Board of Directors, led by Chairman Ndungu Gathinji, has defended the newly introduced Tea Levy Regulations 2026, describing the levy as a strategic intervention aimed at protecting the identity, value, sustainability and competitiveness of Kenyan tea in the global market.

Speaking during a press briefing Gathinji said Kenya’s tea industry remains one of the country’s most important economic pillars and requires strong regulatory and financial support mechanisms to safeguard its future amid changing global economic and trade dynamics.

“Kenyan tea must protect its identity, value and competitiveness in the global market,” Gathinji stated while urging stakeholders across the tea value chain to support the implementation of the levy.

The Board clarified that the tea export levy stands at 0.8 percent and not 8 percent as had been alleged in sections of public debate and media discussions.

According to the Tea Board, the levy is imposed on tea exports and is intended to finance key activities that directly support the growth and sustainability of the tea sector.

Gathinji explained that the funds generated through the levy would be used to strengthen tea marketing and international promotion, support research and development, improve infrastructure in tea-growing regions, enhance quality assurance systems, and improve regulation of the industry for the long-term benefit of tea farmers and stakeholders.

He emphasized that the levy should not be interpreted as a punitive tax but rather as a long-term investment in Kenya’s tea industry, which continues to face increasing global competition, market volatility, climate-related challenges and shifting international consumer preferences.

“The objective is to secure the future of the tea industry and ensure Kenyan tea continues to command premium recognition in the international market,” he said.

The chairman noted that Kenya tea remains globally respected because of its quality and consistency, adding that protecting this reputation requires deliberate investment in market expansion, sustainability compliance and innovation.

He said the regulations were developed under the Tea Act and followed years of consultations involving tea farmers, factory representatives, exporters, brokers, county governments and other industry players.

According to the Board, the Tea Levy Regulations 2026 are expected to provide sustainable financing that will enable the industry to undertake aggressive market diversification and branding strategies at a time when competition from emerging tea-producing countries continues to grow.

The Board also highlighted plans to invest in tea value addition and packaging to reduce overreliance on bulk tea exports and increase earnings from processed and branded Kenyan tea products.

Gathinji said the levy would also support infrastructure development in tea-growing counties, including feeder roads, tea collection centers and logistics systems that directly impact tea transportation and productivity.

Part of the funds, he noted, would be channeled to county governments through structured support mechanisms tied to tea production levels.

The Tea Board further said investments in research and development would help address emerging challenges affecting tea farmers, including climate change, pests, diseases and evolving global quality standards.

Industry stakeholders attending the engagement were informed that research institutions and sector players would work together to promote innovation aimed at improving tea yields, quality and farmer profitability.

The Board also defended the need for stronger regulatory systems, saying improved traceability and compliance measures are becoming increasingly important in global export markets where consumers and buyers are demanding greater transparency and sustainability standards.

Gathinji urged all stakeholders, including exporters, factory owners, buyers and farmers, to view the levy as a collective investment in the future of the tea industry rather than a short-term financial burden.

He warned that failure to strengthen the sector through coordinated investment could weaken Kenya’s position in the international tea trade at a time when global markets are becoming more competitive.

The chairman reiterated that Kenya’s tea sector supports millions of livelihoods directly and indirectly and remains one of the country’s leading foreign exchange earners.

“As a board, we remain committed to ensuring that Kenya tea remains globally competitive, sustainable and beneficial to farmers and the national economy,” he said.

The Tea Board called on the media and stakeholders to support factual public awareness on the levy and the broader reforms being introduced in the tea sector, saying accurate information would help build confidence and ensure smooth implementation of the regulations.

The Board maintained that the success of the tea industry depends on collective efforts among government agencies, tea farmers, exporters, county governments and private sector players working together to strengthen the future of Kenyan tea.