Tea levy not a burden, but a tool for growth, says Kagwe

Senate majority leader Aaron Cheruiyot and Agriculture Cabinet Secretary Mutahi Kagwe during the International Tea Day celebrations held at Momul Tea Factory in Kericho County on May 21 /HANDOUT

Agriculture Cabinet Secretary Mutahi Kagwe has defended the proposed Tea Levy Regulations, 2026, saying the measure is not meant to burden farmers or businesses but to strengthen and sustain Kenya’s tea industry through reinvestment of export earnings.

Kagwe said the levy will ensure that part of the proceeds from tea exports is channelled back into developing, protecting and enhancing the competitiveness of the sector.

“The Tea Levy Regulations, 2026, are not intended to impose unnecessary 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,” Kagwe said.

He was speaking during the International Tea Day celebrations held at Momul Tea Factory in Kericho county.

The event, held under the theme “Fostering Growth and Inclusion,” brought together farmers, manufacturers, traders, researchers, development partners and government agencies to celebrate the contribution of tea to Kenya’s economy.

Kagwe praised the tea sector for its role in supporting millions of livelihoods and earning foreign exchange for the country, noting that Kenya remains a global leader in tea exports.

“Tea remains one of Kenya’s most strategic agricultural commodities and a key pillar of our economy. It supports millions of Kenyans directly and indirectly and remains among our leading foreign exchange earners,” he said.

He commended stakeholders for their resilience despite global price fluctuations, rising production costs, climate change challenges and market uncertainties affecting the industry.

However, Kagwe warned that the sector must urgently embrace reforms to remain competitive in global markets.

“These realities call upon us to embrace innovation, diversification, strategic reforms and stronger collaboration across the entire tea value chain,” he said.

Kagwe was accompanied by Principal Secretary Paul Ronoh, Senate Majority leader Aaron Cheruiyot among other officials.

The CS highlighted ongoing government efforts to expand Kenya’s tea markets beyond traditional destinations, including increased focus on Asia, the Middle East, Europe, Africa and North America.

“We are pursuing deliberate strategies to diversify markets so as to reduce overreliance on a few traditional buyers,” he said.

He also stressed the importance of value addition, urging stakeholders to move away from bulk exports toward higher-value products such as specialty teas, green teas, purple teas, tea bags and branded consumer packs.

“Through value addition, we shall increase earnings, strengthen the Kenya Tea brand and create more employment opportunities for our people,” Kagwe said.

On climate change, Kagwe warned that environmental challenges pose a major threat to tea production and called for greater investment in climate-smart agriculture, reforestation and sustainable land use.

He also praised youth-focused initiatives within the sector, saying young people must be actively integrated into tea production, technology, processing and agribusiness.

“Allow me to commend the inclusion of youth-focused activities aimed at repositioning tea as a modern and opportunity-rich sector for the younger generation,” he said.

Kagwe further addressed concerns over the Tea Levy Regulations, insisting that the funds will be collected at export level and used strictly for industry development, including marketing, research, quality assurance and regulation.

He urged stakeholders to avoid unnecessary legal disputes over the reforms, saying consultations had already been undertaken.

“We shall continue engaging stakeholders transparently to ensure accountability, effective implementation and equitable benefits across the tea value chain,” he said.

The CS praised Momul Tea Factory for launching innovations including orthodox tea processing, specialty tea products, premium packaging, tea bags and an e-commerce platform, saying such initiatives are key to boosting Kenya’s global competitiveness.