Kagwe defends tea levy as growth mechanism for Kenya’s industry

Agriculture Cabinet Secretary Mutahi Kagwe has defended the proposed Tea Levy Regulations, 2026, asserting that the initiative aims to bolster and maintain Kenya’s tea industry by reinvesting export earnings rather than imposing financial strain on farmers or enterprises. The levy guarantees a portion of tea export revenues will be redirected toward advancing, safeguarding, and improving the sector’s competitive edge in global markets. “The Tea Levy Regulations, 2026 do not seek to create undue hardships for tea producers or commercial entities, but rather guarantee that a share of export earnings is reinvested into the advancement, preservation, and competitive positioning of the tea sector,” Kagwe explained. He made these remarks during International Tea Day festivities hosted at Momul Tea Factory in Kericho county. The gathering, themed “Fostering Growth and Inclusion,” united farmers, manufacturers, traders, researchers, development partners, and government agencies to acknowledge tea’s economic significance to Kenya. Kagwe commended the tea sector for sustaining millions of livelihoods and generating foreign currency for the nation, highlighting Kenya’s continued global leadership in tea exports. “Tea persists as one of Kenya’s most vital agricultural products and a fundamental economic pillar. It directly and indirectly supports countless Kenyans while ranking among our primary sources of foreign exchange,” he stated. He acknowledged stakeholders’ endurance amid global price variations, increasing production expenses, climate change obstacles, and market ambiguities impacting the industry. Nonetheless, Kagwe cautioned that the sector urgently requires reforms to maintain its competitiveness in international markets. “These circumstances demand our adoption of innovation, diversification, strategic reforms, and enhanced collaboration throughout the entire tea supply chain,” he emphasized. Kagwe was joined by Principal Secretary Paul Ronoh, Senate Majority leader Aaron Cheruiyot, and additional officials. The cabinet secretary underscored government endeavors to diversify Kenya’s tea markets beyond conventional destinations, with heightened attention on Asia, the Middle East, Europe, Africa, and North America. “We are implementing deliberate strategies to diversify markets and reduce excessive dependence on limited traditional purchasers,” he noted. He further emphasized the significance of value enhancement, encouraging stakeholders to shift from bulk shipments to premium products including specialty teas, green teas, purple teas, tea bags, and branded retail packaging. “Through value enhancement, we will boost revenues, reinforce the Kenya Tea brand, and generate additional employment prospects for our population,” Kagwe stated. Regarding climate change, Kagwe cautioned that environmental challenges present a significant menace to tea cultivation and advocated for increased investment in climate-resilient agriculture, reforestation, and sustainable land management. He additionally endorsed youth-centered initiatives in the sector, asserting that young individuals must be meaningfully incorporated into tea cultivation, technology, processing, and agricultural enterprises. “I wish to commend the incorporation of youth-oriented initiatives designed to reposition tea as a contemporary and opportunity-abundant field for emerging generations,” he remarked. Kagwe further addressed apprehensions regarding the Tea Levy Regulations, maintaining that funds will be collected at the export stage and exclusively allocated for industry advancement, encompassing marketing, research, quality assurance, and regulatory oversight. He encouraged stakeholders to refrain from unnecessary legal conflicts concerning the reforms, noting that consultations had already transpired. “We will sustain transparent engagement with stakeholders to guarantee accountability, effective execution, and fair advantages throughout the tea supply chain,” he affirmed. The cabinet secretary lauded Momul Tea Factory for introducing innovations such as orthodox tea processing, specialty tea offerings, premium packaging, tea bags, and an e-commerce platform, stating that such endeavors are crucial for enhancing Kenya’s global competitive standing.