(Nairobi) – The government has announced plans to review 42 taxes affecting tea products in order to ease the burden on the sector and improve its global competitiveness. The review aims to streamline export processes and enhance efficiency, including updating the scanning machinery used in tea exports.
Agriculture Principal Secretary Dr. Paul Ronoh made the announcement during the Tea Industry Centenary Summit, which celebrated 100 years of tea commercialization in Kenya. Dr. Ronoh emphasized that the review of these taxes is part of a broader effort to support the tea industry, which remains a vital part of Kenya’s economy. The review will also include strategies to lower the costs of tea exports and ensure the industry can remain competitive in the global market.
The Tea Industry Centenary Summit, which brought together delegates from major tea-producing, importing, and exporting countries, was an important event for the global tea community. Dr. Ronoh spoke about the importance of positioning tea farming as a key contributor to Kenya’s economic transformation. He highlighted that tea farming supports about 834,000 farmers and impacts the livelihoods of approximately 6.5 million households in Kenya, making it one of the country’s most transformative sectors.
As part of the government’s commitment to the tea industry, Dr. Ronoh outlined several initiatives under the BETA agenda, which include subsidized fertilizers, national greenleaf standards, and a new tea quality laboratory. He also mentioned a global marketing strategy aimed at increasing Kenya’s tea exports.
Dr. Ronoh also emphasized the need to enhance farmers’ income by making tea production more profitable. He pointed out that reviewing the taxes is critical to achieving this goal. The tax reduction, he said, will help farmers increase their earnings and will support the overall growth of the tea sector.
Additionally, the government is focusing on value addition as part of the strategy to make the tea industry more profitable. Instead of exporting bulk tea, the government plans to set up a common user facility at three locations to enhance tea processing and packaging. This will help produce more refined tea, increasing its global appeal and value.
Dr. Ronoh noted that Kenya’s tea market must evolve, and that shifting from general auctions to targeted sales is key to expanding the market. The government intends to organize tea trade missions to target specific clients and countries with high demand for Kenyan tea.
The government is also working with industry stakeholders, including banks, to provide financial support to tea farmers. Dr. Ronoh highlighted that, while Mombasa hosts the largest global tea auction, domestic tea consumption in Kenya remains low, at less than 10 percent. To address this, new tea products aimed at younger consumers will be introduced to encourage greater local tea consumption.