Nairobi — The Tea Board of Kenya has defended the newly introduced tea export levy, saying the charge will help finance market diversification, infrastructure development and value addition initiatives aimed at strengthening the competitiveness of Kenya's tea industry.
The levy, introduced under the Tea Levy Regulations, 2026, took effect on May 1 following publication through Legal Notice No. 56 of April 1, 2026.
Speaking during a media briefing in Nairobi, Tea Board Chairman Ndungu Gathinji said the levy had been widely misunderstood, clarifying that exporters would pay 0.8 percent and not eight percent as had been reported in some quarters.
"Allow me to clarify an important factor that has, unfortunately, been misrepresented in sections of the media. For exports, the tea levy has been imposed at the rate of 0.08 percent and not the 8 percent that has been arranged in some commentaries," he said.
Keep up with the latest headlines on WhatsApp | LinkedIn
"The export levy is payable at the point of export by the exporter. The Tea Levy Regulations, 2026, provides for a levy of 0.8 percent on tea exports based on auction value or customs value for direct sales."
The Board maintained that the levy is intended to create a sustainable financing mechanism for the tea sector rather than impose an additional burden on consumers.
Officials said proceeds from the levy will support infrastructure development in tea-growing counties, research, quality assurance, branding, sustainability programmes and international market promotion.
The government is also pursuing expanded market access in key destinations including China, United Kingdom, the European Union, United Arab Emirates and the African Continental Free Trade Area.
Officials argued that inadequate financing had previously limited trade missions and global promotional campaigns targeting international buyers.
The Board further noted that value-added tea exports packed in containers below 10 kilograms, tea aromas and products processed within export processing zones and special economic zones for local consumption would be exempt from the levy as part of efforts to encourage local processing and branding.
The levy has, however, faced resistance from some industry players, who have questioned both its legality and potential impact on exporters already grappling with rising operational costs and increased competition in global markets.
