Githunguri MP Gathoni Wamuchomba has called for the suspension of the 0.8 per cent tea export levy, which came into effect on May 1. Wamuchomba cited the financial burden the levy has added to the already struggling tea industry, questioning its impact on farmers' livelihoods. The MP stated that farmers had been assured that exporters would bear the levy, but concerns have emerged that the cost is being passed on to growers through lower buying prices.
Wamuchomba also pointed to increased competition from cheaper tea markets, including Uganda, Rwanda, and Burundi, as well as declining demand, unsold stocks, and discounted auction prices. She mentioned that tea selling at the minimum reserve price of $2.60 per kilogram has, in some instances, been sold for as little as $1.35. This has resulted in financial distress among farmers, who can no longer absorb the effects of rising costs, declining market prices, and inefficiencies across the tea value chain.
The government has defended the levy as a way to fund price stabilisation, research, infrastructure, and market development. However, Wamuchomba questioned whether allocating 50 per cent of the levy proceeds to price stabilisation would adequately cushion farmers from their losses. She called on the government to restore and expand key tea export markets, particularly Pakistan, Iran, and Sudan, while addressing barriers affecting international buyers.
Wamuchomba also urged the government to eliminate port delays and system failures, publish and act on the tea factory debt audit, and conduct an independent assessment of the decline in the 2025-26 tea bonus. The assessment should establish the contribution of the export levy, auction prices, factory debts, and operational expenses to the decline. This would provide a clearer understanding of the challenges facing the tea industry.
The Tea (Levy) Regulations, 2026, introduced by the Ministry of Agriculture and the Tea Board of Kenya under the Tea Act 2020, took effect on May 1. The government stated that the levy was intended to provide sustainable funding for the tea sector. However, Wamuchomba's concerns highlight the need for a review of the levy and its impact on farmers.
The tea industry is a significant contributor to Kenya's economy, and the decline in tea bonuses and financial distress among farmers have far-reaching implications. Wamuchomba's call for the suspension of the tea export levy has sparked a debate on the best way to support the industry and ensure the well-being of farmers.
The government has yet to respond to Wamuchomba's demands, but the issue is likely to continue to be a topic of discussion in the coming days. The outcome will have significant implications for the tea industry and the thousands of farmers who depend on it for their livelihoods.
Key points
- Githunguri MP Gathoni Wamuchomba has called for the suspension of the 0.8 per cent tea export levy.
- The levy has added to the financial burden facing the tea industry, with concerns that the cost is being passed on to growers through lower buying prices.
- Wamuchomba has urged the government to restore and expand key tea export markets and address barriers affecting international buyers.
