By Ken Muthomi - Reporter
Kenya, 9 May 2026 - The Ministry of Agriculture, through the Tea Board of Kenya, has come out to defend the new tea levy, stressing that it is aimed at addressing the long-standing challenges in the tea sector and enhancing returns to farmers.
In a statement, the board said that the levy was introduced through the Tea (Levy) Regulations 2026, which seek to provide a sustainable funding model for various tea industry programmes, including infrastructure development and regulatory frameworks.
The levy, provided for under Section 53 of the Tea Act, 2020, was activated through Gazette Notice No. 82 published on 1 April 2026, following stakeholder consultations conducted between 2021 and 2025, according to the Board.
Under the new regulation, tea exports attract a levy of 0.8% of the auction value or customs value for direct sales, payable at the point of export, which translates to approximately KSh 2.28 per kg of made tea.
The board has, however, clarified that this levy is paid at the export and import stage and is payable by exporters and importers and not directly from the tea farmers.
“The regulation is in accordance with Section 53(5) of the Tea Act, which provides that the tea levy shall be applied in income and price stabilisation for tea growers, research, infrastructure development, and regulation,” the statement read.
According to the board, half of the levy will be pumped towards stabilizing tea growers’ incomes and prices, 20% to fund research, 15% to infrastructure, and another 15% to regulating the sector.
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The levy will be fundamental in addressing longstanding challenges affecting the country’s tea sector, which include low tea prices, weak market promotion, declining tea quality, limited value addition, and insufficient research.
Exemption of the levy will only apply to value-added teas packed into packets or containers holding not more than 10kgs, tea extracts and tea aromas, and Kenya tea value-added in EPZ/SEZ for local consumption, according to the board.
“It is imperative to note that similar levies are charged in other tea-producing and consuming countries to promote the development of their tea industries,” the board stated.
Tea remains one of Kenya’s leading foreign exchange earners and among the country’s top agricultural export products, alongside horticulture and coffee, with the country being known as the leading exporter of black tea.
In 2025, tea exports generated approximately KSh 186.91 billion (over $1.3 billion), representing a 2.87% increase in export earnings from 2024.