- Agriculture CS Mutahi Kagwe says the proposed 0.8% tea levy will be paid by buyers, not farmers, and will not reduce grower earnings.
- The levy will support farmer payments, research, infrastructure and marketing as Kenya seeks to protect tea through a Geographical Indication.
Agriculture Cabinet Secretary (CS) Mutahi Kagwe has said the proposed 0.8% tea levy will not cut farmer earnings, as buyers, not growers, will bear the cost.
Speaking on a local radio station, the CS said the levy is designed to correct long standing market distortions that have denied Kenyan tea farmers fair value for their produce.
He explained that countries such as Pakistan, India, Egypt, the United Arab Emirates (UAE), Iraq, Iran, Russia and China have for years imported Kenyan tea in bulk, blended and repackaged it, then sold it under their own brands.
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To address this, Kagwe said Kenya will use a Geographical Indication (GI) to promote and protect its tea as a premium global brand. He said the move will allow farmers to earn better value for their produce by ensuring Kenyan tea is recognised and marketed as such in international markets, rather than being absorbed into foreign brands.
The CS dismissed claims that the levy would hurt exports, pointing to strong demand for Kenyan tea. He said 96% of the tea on offer was sold at the auction held last week.
On how the proceeds will be used, Kagwe said 50% will go directly to farmers, while 20% will fund research. The remainder will be channelled into infrastructure, marketing and other initiatives aimed at strengthening the global competitiveness of Kenyan tea.
By Benedict Aoya
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