Tea Board of Kenya Defends Tea Levy Regulations as Strategic Investment in Sector Growth

By Bruno Aero Family Media Digital Staff Journal Bussiness Agriculture,

The Tea Board of Kenya has defended the implementation of the Tea (Levy) Regulations, 2026, describing the levy as a strategic financing mechanism aimed at strengthening the long-term sustainability, competitiveness, and global positioning of Kenya’s tea industry.

Tea Board of Kenya (TBK) Chairman Mr, Ndung’u Gathinji During a Press Briefing Held In Nairobi Tea House

Speaking during a media briefing held on May 14, 2026 at Tea House in Nairobi, Tea Board of Kenya Chairman Ndung’u Gathinji said the regulations were developed under Section 53 of the Tea Act, Cap 343, and officially took effect on May 1, 2026 following publication through Legal Notice No. 56 in the Kenya Gazette Supplement No. 82 of April 1, 2026.

Gathinji clarified that the export levy has been set at 0.8 percent and not 8 percent as had been alleged in sections of public commentary. 

He explained that the levy is payable by exporters at the point of export and is based on auction value or customs value for direct sales.

According to the Board, the regulations exempt value-added teas packed in packets or containers not exceeding ten kilograms, tea extracts and tea aroma, as well as Kenya teas value-added within Export Processing Zones and Special Economic Zones for local consumption.

The Tea Board Of Kenya (TBK) CEO Mr, Willy K  Mutai

The Tea Board Of Kenya (TBK) CEO Mr, Willy K  Mutai said the exemptions are intended to promote local value addition, branding, and export diversification in line with the Government’s Bottom-Up Economic Transformation Agenda (BETA).

Gathinji emphasized that the levy is not meant to punish consumers but rather to provide sustainable funding for key interventions across the tea value chain.

He said the funds collected will support tea infrastructure development, market expansion and promotion, quality assurance and traceability systems, research and innovation, sustainability compliance, value addition and branding, farmer support interventions, and efforts aimed at enhancing the global competitiveness of Kenya tea.

The Chairman and Board members noted that infrastructure development funds will be disbursed directly to tea-growing county governments as conditional grants based on tea production levels. County governments, in consultation with stakeholders, will identify and prioritize projects such as feeder roads, tea buying centres, and other critical infrastructure supporting tea farming communities.

The Tea Board of Kenya also maintained that the regulations were developed through an extensive consultative process conducted between 2021 and 2025 involving tea farmers, factories, buyers, exporters, importers, brokers, warehousemen, packers, county governments, tea associations, government agencies, and other industry stakeholders.

While acknowledging concerns raised by some stakeholders and international buyers over the implementation of the levy, the Board assured industry players that it would continue engaging stakeholders through consultations, sensitization forums, operational advisories, and technical support to ensure smooth implementation.

Gathinji reaffirmed Kenya’s position as a leading global tea producer, noting that the Mombasa Tea Auction remains the largest tea auction in the world and continues to serve as a strategic regional trading hub for teas from Kenya and neighboring countries.

The chairman emphasize and made a cal of action  to stakeholders and the media to support accurate, factual, and balanced reporting on the Tea Levy Regulations and broader tea sector matters to promote public confidence and informed decision-making within the industry.

The Chairman reiterated the Board’s commitment to continued engagement, transparency, and collaboration with all stakeholders in safeguarding and growing Kenya’s tea sector for future generations.