Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has defended the Tea Levy against criticism, saying it has not hurt Kenya's tea industry as claimed by opponents, but instead will provide the resources needed to strengthen research, marketing and value addition across the sector.
Speaking during the handover of a Sh360 million Japanese-funded Sencha green tea processing factory at Kangaita Tea Factory in Kirinyaga County, Kagwe said tea uptake had reached 93 per cent, the highest level recorded in years, dismissing claims that the levy had caused a glut in the market.
"Tea uptake has increased to 93 per cent compared to the levels witnessed three years ago. It is therefore not true that the Tea Levy has caused a glut," Kagwe said.
The Cabinet Secretary said the 0.08 per cent Tea Levy is charged on tea buyers rather than farmers and is intended to generate funds to market Kenyan tea in new export destinations, support research into improved tea varieties, strengthen climate resilience and promote value addition.
"Where will the money to promote Kenyan tea in international markets come from if we refuse to support the Tea Levy? Let us be honest—it is not the farmer paying this levy. It is the buyer," he said.
Kagwe argued that Kenya cannot sustain its position as the world's leading exporter of black tea without investing in market expansion and innovation.
He noted that ageing tea bushes have continued to reduce productivity and quality in several tea-growing regions, making research into high-yielding and climate-resilient tea varieties increasingly important.
According to the Cabinet Secretary, proceeds from the levy will be reinvested into the sector to improve research, expand market access, encourage innovation and empower tea farmers.
The event also marked the official handover of a Sh360 million Japanese Sencha Green Tea Processing Factory, donated by the Japan International Cooperation Agency (JICA), to Kangaita tea farmers after the facility remained idle since 2019 due to an ownership dispute.
"This factory now belongs to the farmers of Kangaita. That is the message I was given by President William Ruto himself. We could not allow such an important investment to remain dormant while farmers waited to benefit," Kagwe said.
The facility is the first in Africa to produce authentic Japanese Sencha green tea, opening opportunities for Kenya to enter premium specialty tea markets where prices can fetch up to 10 US dollars per kilogramme.
Kagwe thanked the Government of Japan, JICA and Japanese taxpayers for financing the project, describing it as a major milestone in advancing technology transfer, premium tea processing and increasing farmers' earnings.
He said expanding value addition within the tea industry would not only boost export revenues but also create employment opportunities, particularly for young people.
"The children of tea farmers must also benefit from this industry. Value addition creates industries, creates jobs and ensures the next generation sees agriculture as a profitable enterprise," he said.
The Cabinet Secretary further announced that Japan will continue supporting technical training to enable Kenyan experts to master Sencha tea production and position Kangaita as a continental centre of excellence in specialty tea manufacturing.
Kagwe also urged stronger protection of Kenya's tea identity through Geographical Indications, noting that some countries continue to package and market Kenyan tea as their own.
He reiterated that the government remains committed to investing Tea Levy proceeds back into the tea sector, saying the ultimate beneficiaries will be farmers through improved productivity, expanded markets and higher incomes.