By Jameson Mutua
The Tea Board of Kenya (TBK) has defended the implementation of the Tea (Levy) Regulations, 2026, saying the new levy is aimed at strengthening the long-term sustainability and competitiveness of Kenya’s tea industry rather than increasing costs for consumers.
Speaking during a media briefing at Tea House in Nairobi on Thursday, Tea Board of Kenya Chairman Ndung’u Gathinji sought to address concerns and misinformation surrounding the levy, particularly claims that tea exports would be subjected to an eight percent charge.
Gathinji clarified that the export levy has been set at 0.8 percent, not eight percent as reported in some sections of the media. He explained that the levy is payable by exporters at the point of export and is based on auction value or customs value for direct sales.
“The levy is not intended to be a punitive tax measure to the consumer. Rather, it is a strategic investment mechanism aimed at supporting the long-term sustainability and competitiveness of the tea industry,” he said.
The regulations, developed under Section 53 of the Tea Act Cap 343, were published through Legal Notice No. 56 on April 1, 2026 and officially took effect on May 1, 2026.
According to TBK, the regulations provide exemptions for value-added teas packed in containers not exceeding ten kilograms, tea extracts and tea aroma, as well as Kenya teas processed within Export Processing Zones and Special Economic Zones for local consumption. The Board said the exemptions are intended to encourage local processing, branding and export diversification in line with the government’s Bottom-Up Economic Transformation Agenda.
Gathinji noted that the tea sector remains one of Kenya’s most important economic pillars, supporting millions of livelihoods and serving as one of the country’s leading foreign exchange earners.
He said revenue generated from the levy would be directed towards key areas including infrastructure development, market expansion, research and innovation, quality assurance systems, sustainability compliance, value addition, branding and farmer support initiatives.
Under the new framework, funds allocated for infrastructure development will be channeled directly to tea-growing county governments as conditional grants determined by tea production levels.
Counties will work with stakeholders to identify priority projects such as feeder roads, tea buying centres and other infrastructure supporting farming communities.
The Tea Board also maintained that the regulations were developed through extensive public participation and consultations conducted between 2021 and 2025 involving farmers, factories, exporters, county governments and other industry stakeholders.
While acknowledging concerns raised by some stakeholders and international buyers, the Board pledged continued engagement through consultations, sensitization forums and technical support.
Gathinji said Kenya remains a dominant force in the global tea market, noting that the Mombasa Tea Auction continues to serve as the largest tea auction in the world and a strategic regional trading hub.
He called on industry players to support the implementation of the regulations and urged the media to ensure accurate and balanced reporting on issues affecting the tea sector.
“Together, let us safeguard, strengthen and grow the Kenya tea industry for present and future generations,” he said.
