Kenya to review taxes, boost value addition to strengthen tea industry 

KENYA – Kenya has announced plans to reassess the 42 taxes currently affecting the tea sector to enhance the industry’s competitiveness and profitability.  

Agriculture Principal Secretary Paul Ronoh revealed this during the Tea Industry Centenary Summit, emphasizing the government’s commitment to supporting tea farmers and improving export processes. 

“The government is determined to make tea farming profitable by easing the tax burden, improving export efficiency, and increasing global competitiveness,” Ronoh stated.  

Measures under review include updating export scanning machinery and streamlining procedures to reduce costs and enhance efficiency. 

The initiative is part of Kenya’s broader BETA agenda, which supports the tea industry through subsidized fertilizers, the establishment of national Greenleaf standards, a new tea quality laboratory, and a global marketing strategy.  

“Our theme, ‘making the farmer the King,’ reflects our dedication to repositioning this vital crop for another century of success,” Ronoh added. 

Kenya’s tea industry plays a critical role in the country’s economy, directly involving 834,000 farmers and supporting approximately 6.5 million households.  

The government is prioritizing tax reforms and value addition to ensure that tea farming remains sustainable and profitable for these stakeholders. 

Ronoh emphasized the importance of exporting value-added tea rather than bulk products, a shift aimed at boosting profitability and enhancing Kenya’s global appeal. 

To support this transition, the government is establishing common user facilities at three locations to enhance tea processing and packaging. 

Additionally, the Tea Board of Kenya (TBK) is pursuing a five-year strategy to diversify export markets and reduce dependence on traditional buyers such as Pakistan and Egypt.  

The board is targeting 13 emerging markets, including the United States, Canada, Germany, and Saudi Arabia, to expand Kenya’s tea footprint. 

Recent TBK data shows Kenyan tea exports from July to September 2024 reached KES2.24 billion (US$17.4 million), with 155.09 million kilograms shipped, marking a significant increase from the same period the previous year. 

However, while Mombasa hosts the largest global tea auction, domestic tea consumption remains below 10 percent.  

To address this, the government is introducing innovative tea products aimed at younger consumers to encourage greater local engagement with the market and foster a culture of tea consumption among the youth. 

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