By Brian Said Iha,July 23 2026
Agriculture Cabinet Secretary Mutahi Kagwe has defended the newly introduced Tea Levy, dismissing claims that it is hurting Kenya’s tea industry and announcing that national tea uptake has risen to a record 93 percent.
Speaking in Kirinyaga County on Thursday, Kagwe said the high uptake demonstrates that Kenya’s tea remains competitive in the global market despite concerns raised by some stakeholders and international buyers over the Tea (Levy) Regulations, 2026.
The Cabinet Secretary noted that the current 93 percent tea uptake is the highest recorded in recent years, arguing that fears the levy would lead to reduced demand, lower prices or an oversupply of tea have not materialized.
Kagwe clarified that the 0.8 percent export levy is paid by tea buyers and exporters at the point of export through the Port of Mombasa and does not reduce the earnings received by smallholder tea farmers.
He explained that the levy is intended to strengthen the tea industry by generating funds that will be reinvested in programmes aimed at improving productivity, stabilizing prices and increasing farmers’ incomes.
According to the CS, half of the revenue collected from the levy will be directed towards farmer support and price stabilization initiatives, while 20 percent will fund research activities at the Tea Research Institute. Another 15 percent will support the operations of the Tea Board of Kenya (TBK), with the remaining funds allocated to other sector development programmes.
Kagwe also highlighted the government’s decision to introduce a 100 percent levy on imported made tea under the new regulations, saying the measure is intended to protect local producers from unfair competition and prevent cheap imported tea from flooding the Kenyan market.
During his visit, the Cabinet Secretary officially handed over the newly revived KSh 360 million Sencha Green Tea Processing Factory to tea farmers in Kangaita.
The factory, described as Africa’s only authentic Japanese Sencha tea processing plant, had remained idle since 2019 following a dispute over its ownership and management.
Kagwe said the reopening of the facility marks a major step in the government’s strategy of promoting value addition and reducing reliance on bulk tea exports.
He noted that specialty teas such as Sencha command premium prices of up to USD 10 (approximately KSh 1,290) per kilogramme in international markets, offering farmers an opportunity to earn significantly higher returns.
The Agriculture CS urged tea farmers to embrace value addition and innovation, saying the government remains committed to strengthening the tea value chain and ensuring Kenyan tea continues to maintain its reputation as one of the world’s leading exports.
He reiterated that reforms in the tea sector are designed to improve farmers’ livelihoods, expand market access and enhance the long-term sustainability of one of Kenya’s most important foreign exchange earners.
