Kagwe defends new tea levy, urges stakeholders to stop court battles

Agriculture Cabinet Secretary Mutahi Kagwe has defended the newly introduced Tea Levy Regulations 2026, saying the levy is necessary to fund marketing, branding, value addition and the global promotion of Kenyan tea.

Speaking during International Tea Day celebrations in Kericho County, Kagwe urged tea stakeholders to stop “wasting millions in unnecessary litigation” and instead engage the government through dialogue over the reforms.

“The Tea Levy is intended to provide a sustainable funding model for tea industry programmes, including the promotion and marketing of our tea, the branding and value addition of our tea, the promotion of research for our tea, quality assurance and effective regulation in order to enhance the competitiveness of Kenya’s tea industry,” he said.

The Agriculture CS insisted the levy was not designed to burden farmers or exporters but to ensure part of the proceeds generated from tea exports are reinvested into strengthening the sector.

“The government assures all stakeholders that this initiative is not intended to impose unnecessary burdens on tea farmers or businesses, but rather is intended to ensure that some of the proceeds from tea exports are ploughed back into the development, protection and competitiveness of the tea sector,” he stated.

Kagwe also criticised factory directors and industry players who have challenged the levy in court, arguing that the matter had already undergone years of consultations and stakeholder engagement.

“Factory directors should not waste millions of tea farmer funds in unnecessary litigation on matters which they already litigated and consented to in April 2024,” he said.

Instead, the CS appealed for dialogue between the government and tea stakeholders to resolve concerns surrounding the implementation of the levy.

“Please come to the table, not the court,” he said.

Kagwe said Kenya must invest heavily in value addition and global branding to protect its position as the world’s leading exporter of black CTC tea.

“We can never brand our tea unless we go out there and get people who can promote Kenyan tea,” he said, adding that Kenya wanted to see “double decker buses in the UK branded with Kenyan tea.”

He further noted that the government was pursuing new export markets, particularly in China, where Kenya now exports tea duty-free following bilateral engagements led by President William Ruto.

According to the proposed Tea Levy Regulations 2026, exporters will pay a levy equivalent to 0.8 per cent of the auction value or customs value for direct tea sales, with the funds expected to support marketing, research, infrastructure and regulation within the tea sector.

The regulations took effect on May 1, 2026, after being gazetted under Legal Notice No. 56 of April 1, 202