Tea farmers demand withdrawal of Kenya’s 0.8% tea levy amid falling returns

KENYA – Tea farmers in Kericho have called on the Tea Board of Kenya (TBK) to withdraw the newly introduced 0.8 percent tea levy, arguing that the additional charge will reduce farmers’ earnings at a time when the industry is grappling with low returns and rising production costs. 

Led by Kericho Governor Erick Mutai, the farmers said the levy places an unnecessary financial burden on the sector and urged the regulator to prioritise improving tea prices and expanding export markets instead of introducing new deductions. 

“The levy was imposed at the tea auction in the name of funding research. We ask, what research is this when our farmers are already suffering,” said Mutai. 

The Tea (Levy) Regulations, which came into effect on May 1, 2026, impose a 0.8 percent levy on tea exports based on the auction or customs value. The regulations also introduced a 100 percent levy on imported bulk tea. 

Speaking during a Kericho Cooperatives meeting, Mutai called for the immediate withdrawal of the levy, saying farmers need improved returns rather than additional costs. 

“The addition of tea levies must stop. It is hurting our farmers. The tea levy must be scrapped so that our tea is sold competitively at the Mombasa Tea Auction and our farmers receive better returns on their investment,” he said. 

The governor also criticised the Kenya Tea Development Agency (KTDA) over the marketing of tea produced by factories in the western Rift Valley. He said tea growers in the region continue to receive lower bonuses than their counterparts in eastern Rift. 

“Farmers in the West of Rift earn bonuses as low as Sh13 per kilogramme while those in the East of Rift receive much higher payments. As we speak, large volumes of tea from the West of Rift remain unsold at the Mombasa Tea Auction. For the first time, Rwanda, a much smaller tea-producing country, has overtaken Kenya in terms of payments to farmers,” Mutai said. 

He further urged KTDA to diversify Kenya’s export destinations beyond traditional Middle Eastern markets, noting that conflicts in parts of the region have disrupted tea exports. 

“There have been endless meetings and conferences to discuss tea issues. Those discussions must now come to an end. We need to see results that improve the livelihoods of our farmers,” he added. 

The Tea Board of Kenya has defended the levy, stating that it is intended to replace funding lost after the previous tea levy was abolished in 2016.  

According to the board, the levy is payable by exporters rather than farmers, with proceeds ring-fenced to support research, regulation, infrastructure development and initiatives aimed at improving farmers’ incomes. 

During the first six months of 2026, Kenya earned KES55 billion (US$424.02 million) from tea exports after offering approximately 186.2 million kilogrammes of tea at the Mombasa Tea Auction. 

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