Kenya waives taxes on tea packaging materials to boost value addition, farmer incomes 

KENYA – The Government of Kenya has waived taxes on packaging materials used in the tea sector as part of a broader strategy to improve farmer productivity and boost incomes through value addition.  

The announcement was made by Cabinet Secretary (CS) for Agriculture and Livestock Development, Mutahi Kagwe, during a recent stakeholders meeting. 

CS Kagwe emphasized the government’s commitment to revitalizing the tea industry, noting that the removal of taxes on packaging materials would significantly reduce value addition costs and allow farmers to benefit more from their produce.  

He reiterated the government’s focus on supporting the tea sector by working with stakeholders to access new international markets for Kenyan tea. 

“We want to make changes in the tea industry for farmers to benefit from their tea. We have removed taxes related to packaging materials, a major contributor to high costs on value addition,” said CS Kagwe. 

To help farmers increase earnings, Kagwe encouraged them to produce high-quality tea by adhering strictly to proper leaf plucking practices. He stressed the importance of harvesting only two leaves and a bud to ensure top-grade tea, which commands better prices both locally and abroad. 

“Farming is business and we must look at it from a business point of view. If you go to three leaves and a bud your quality will come down. Four leaves or more leads to even lower quality and reduced value,” he added. 

CS Kagwe also warned against the practice of tea hawking, citing its negative impact on the quality of Kenyan tea. He vowed to crack down on this practice to protect the integrity of the product and ensure farmers deliver directly to processing factories. 

In terms of market expansion, Kagwe revealed that Kenya is working to reclaim the Iranian Orthodox tea market and strengthen its position in Pakistan.  

He further announced that the country will open an orthodox tea auction window under the Integrated Tea Trading System (ITTS) in June, supervised by the East African Tea Trade Association (EATTA) and the Tea Board of Kenya. 

Additionally, the Ministry of Agriculture will partner with county governments to enhance agricultural extension services. The initiative includes training agripreneurs to guide farmers on soil health, input use, modern farming practices, and value addition techniques to raise productivity and tea quality. 

Farmers will also benefit from ongoing training programs that promote the use of new technologies and help them adapt to changing market trends. 

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