Tea Board Defends New Levy Rules as Catalyst for Kenya’s Tea Sector Transformation

By Bruno Aero Family Media, | May 13, 2026

Nairobi, Kenya Tea Board of Kenya has defended the Tea Levy Regulations 2026, describing them as a transformative policy framework designed to strengthen Kenya’s tea industry through improved infrastructure, enhanced accountability, market expansion, and long-term sector sustainability.

Tea Board of Kenya CEO Mr. Willy Mutai in a meeting with stakeholders,

Speaking during a media sensitization meeting held Wednesday at Tea House in Nairobi, the Board’s Chief Executive Officer, Willy K. Mutai, said the regulations are part of wider reforms aimed at boosting efficiency, increasing farmer earnings, and positioning Kenya competitively in the global tea market.

“The tea sector remains one of the country’s most strategic agricultural value chains. It supports millions of livelihoods, contributes significantly to foreign exchange earnings, and plays a critical role in rural economic development,” said Mutai.

The Board noted that the new levy framework is expected to support the development of critical tea infrastructure and strengthen services across the tea value chain, while enhancing transparency and improving returns to farmers.

A major pillar of the reforms is market diversification and value addition. According to the Board, Kenya is targeting expanded tea exports to emerging and established markets including China, West Africa, Russia and CIS countries, North America, and parts of Asia.

The regulations also support the establishment of tea warehousing hubs in strategic global locations such as the Democratic Republic of Congo (DRC), the UAE, Ghana, and China to improve market access and strengthen Kenya’s international tea trade footprint.

In a move aimed at reducing dependence on bulk tea exports, the regulations promote value addition through packaged, branded, and specialty teas. The reforms further seek to strengthen research capacity to improve tea quality, diversify products, and address sector malpractices including green leaf trading irregularities, counterfeiting of premium tea marks, governance gaps, and farmer exploitation.

To encourage local processing and manufacturing, exemptions under the levy regulations will apply to value-added teas packed in containers not exceeding 10 kilograms, tea extracts and aromas, as well as Kenya tea processed within Export Processing Zones (EPZs) and Special Economic Zones (SEZs) for local consumption.

On concerns surrounding implementation, the Board announced transitional measures for exporters who had already purchased tea or entered into contracts before the levy came into effect on May 1, 2026. Such exporters may qualify for refunds upon submission of proof of purchase, levy payment, and contractual commitments.

Tea Board of Kenya CEO Mr. Willy Mutai (center) Is Briefed By His Conclave Members Of The Board Team

The Tea Board says the Tea (Levy) Regulations 2026 align with the government’s Bottom-Up Economic Transformation Agenda (BETA), which seeks to revitalize agriculture, increase farmer incomes, and strengthen Kenya’s position as a global tea powerhouse.