New tea levies spark debate as MPs push for farmer sensitisation
The National Assembly’s Committee on Delegated Legislation has called for increased public sensitization on the proposed Tea Regulations, 2026, amid concerns that new levies could be misunderstood by farmers and industry players.
The committee, chaired by Samuel Chepkonga, met officials from the Tea Board of Kenya at Bunge Towers on Tuesday, May 26, 2026, to scrutinize the proposed Tea (Registration and Licensing) Regulations, 2026, and the Tea (Levy) Regulations, 2026.
The regulations seek to streamline operations in Kenya’s tea sector, improve accountability, and boost the global competitiveness of Kenyan tea.
Appearing before the committee, Tea Board of Kenya Chief Executive Officer Willy Mutai defended the proposed reforms, saying they were aimed at revitalizing the tea industry and ensuring export earnings are reinvested into the sector.
Under the proposed framework, all stakeholders in the tea value chain, including farmers, factories, brokers, exporters, transporters, commercial nurseries, and tea dealers, will be required to register and obtain licenses.
Factories will also be required to undertake local value addition and trade through transparent electronic trading platforms to improve traceability and accountability in the industry.
The regulations further seek to curb illegal green leaf hawking and limit the influx of low-quality tea imports into the Kenyan market.
A key area of contention, however, is the proposed levy framework. The Tea (Levy) Regulations, 2026 propose a 0.8 percent levy on tea exports, a one percent charge on Kenyan tea sold at auction, and a 100 percent levy on imported tea products.
For blended teas, the levy would apply only to the customs value of the Kenyan tea component. Tea imported into Export Processing Zones (EPZs) or Special Economic Zones (SEZs) and later diverted into the local market would also attract the 100 percent levy.
Committee members expressed fears that the new charges could negatively affect tea farmers at a time when global tea earnings remain under pressure.
Committee Vice Chairperson Gichimu Githinji said farmers needed proper information on the intended benefits of the levy to avoid misinformation.
“I did not have that information that the measure is not meant to burden farmers or businesses but to strengthen and sustain Kenya’s tea industry through reinvestment of export earnings,” Gichimu said.
He added that farmers should be informed if proceeds from the levy would be used to improve roads and infrastructure in tea-growing regions.
“If the levy will ensure that part of the proceeds from tea exports is channelled back into developing roads and tea-growing infrastructure, then that is what farmers need to be informed about,” he said.
In response, Mutai insisted the levies were strategic investments intended to support the long-term growth of the sector.
“The Tea Levy Regulations, 2026, are not intended to impose burdens on tea farmers or businesses, but rather to ensure that some of the proceeds from tea exports are ploughed back into the development, protection and competitiveness of the tea sector,” he said.
According to the Tea Board, funds collected by the Kenya Revenue Authority on its behalf would be used for global branding and marketing of Kenyan tea, research and development, infrastructure projects such as roads and tea collection centres, as well as industry regulation and oversight.
Gichimu urged the Tea Board to intensify public awareness campaigns to counter propaganda and misinformation surrounding the proposed regulations.
“This information is not out there with the farmers. Take time and pass the information to them. We know there are others who might take advantage of misinformation and spread propaganda to farmers,” he said.
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Francis Muli
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