By Dennis Gichuiri
The Tea Board of Kenya has defended the newly introduced Tea Levy Regulations 2026, saying the levy is meant to strengthen the tea sector, support farmers and improve Kenya’s competitiveness in the global tea market.
Speaking during a media briefing at Tea House in Nairobi, Tea Board of Kenya Chairman Ndung’u Gathinji said the levy was introduced through a lawful and consultative process aimed at ensuring sustainable financing for the tea industry.
Gathinji said the tea sector remains one of Kenya’s most important economic pillars, supporting millions of livelihoods and contributing significantly to foreign exchange earnings and rural economic development.
“As a Board, our strategic focus remains positioning Kenya tea as a globally competitive, sustainable and high-value agricultural value chain that supports tea farmers and contributes meaningfully to the national economy,” he said.
The chairman clarified that the export levy stands at 0.8 percent and not 8 percent as alleged in some sections of the media and among stakeholders.
According to the regulations published under Legal Notice No. 56 in the Kenya Gazette Supplement of April 1, 2026, the levy took effect on May 1 and applies to tea exports based on auction value or customs value for direct sales.
The levy will be paid by exporters at the point of export.
However, the regulations exempt value-added teas packed in containers not exceeding 10 kilograms, tea extracts and tea aroma, as well as teas processed within Export Processing Zones and Special Economic Zones for local consumption.
Gathinji said the exemptions were deliberate measures aimed at promoting local value addition, branding and export diversification in line with the government’s Bottom-Up Economic Transformation Agenda.
“The levy is not intended to be a punitive tax measure to consumers. It is a strategic investment mechanism aimed at supporting the long-term sustainability and competitiveness of the tea industry,” he said.
He noted that similar levies are already being charged in other tea-producing and tea-consuming countries to support growth and development within the sector.
According to the Tea Board, the funds collected from the levy will support infrastructure development, market expansion, research and innovation, quality assurance systems, sustainability compliance and farmer support programmes.
Part of the funds will also be directed towards promoting value addition and strengthening the global competitiveness of Kenyan tea.
The chairman revealed that funds earmarked for infrastructure development will be disbursed directly to tea-growing county governments as conditional grants based on tea production levels.
County governments, in consultation with stakeholders, will then identify and prioritise projects including feeder roads, tea buying centres and other infrastructure supporting tea farming communities.
The Board also insisted that the regulations were developed through extensive public participation and stakeholder consultations conducted between 2021 and 2025.
According to Gathinji, the consultations involved tea farmers, factories, exporters, brokers, packers, county governments, government agencies and other players in the tea value chain.
“We remain committed to continued stakeholder engagement to ensure smooth implementation and responsive administration of the levy framework,” he said.
The Tea Board acknowledged concerns raised by some international buyers and stakeholders following implementation of the levy but assured the industry that further engagements and sensitisation forums would continue.
Gathinji maintained that Kenya tea continues to enjoy a strong reputation globally because of its quality, adding that the Mombasa Tea Auction remains the largest tea auction in the world.
He urged industry players and the media to support constructive engagement and accurate reporting on the Tea Levy Regulations and broader reforms in the tea sector.
“Together, let us safeguard, strengthen and grow the Kenya tea industry for present and future generations,” he said.
