The government has defended the newly introduced tea levy, saying the move is meant to revive the tea sector and help improve earnings for farmers across the country.
In a statement released on Friday, the government said the levy will support programmes aimed at making Kenyan tea more competitive in the global market while also improving research, infrastructure and market access.
The levy was introduced through the Tea (Levy) Regulations 2026 under the Tea Act of 2020 and officially took effect after the publication of Gazette Notice No. 82 on April 1, 2026.
According to the regulations, exporters will now pay a levy of 0.8 per cent based on the auction value or customs value for direct tea sales. Imported tea products will also attract a 100 per cent levy on the import value of each consignment.
However, the government clarified that the levy will not be deducted from tea farmers. Instead, it will be paid by tea exporters and importers at the point of export or import.
Officials said the money collected will go towards stabilising tea prices and supporting farmers, with part of the funds also being used for research, infrastructure development and strengthening regulation within the tea sector.
The government noted that Kenya’s tea industry has continued to face several challenges, including low prices, limited access to international markets, weak branding and reduced investment in research.
Authorities believe the levy will help Kenya open up new tea markets in regions such as China, West Africa, Russia, North America and parts of Asia.
The funds are also expected to support value addition by encouraging the export of packaged and branded Kenyan tea instead of relying mainly on bulk exports.
At the same time, the government said more focus will be placed on fighting fake Kenyan tea brands in foreign markets and dealing with exploitation of tea farmers within the value chain.
The statement further revealed that value-added tea packed in containers of less than 10 kilograms, tea extracts and tea aromas will not attract the levy. The exemption is meant to encourage local tea processing and packaging.
Meanwhile, the Tea Board of Kenya has responded to concerns raised by tea exporters over contracts signed before the levy came into effect.
The board said exporters who bought tea or signed contracts between January 1 and April 30, 2026, may apply for refunds on the levy paid, provided they submit proof of purchase, levy payment and prior agreements with international buyers.
According to the government, the move is aimed at protecting traders from losses linked to agreements made before the new levy started.
