- Kagwe defended the Tea Levy, saying it funds tea marketing, research and value addition, not farmers.
- Tea uptake has risen to 93 per cent, which he said disproves claims the levy has hurt sales.
- Gov’t handed over a Ksh360 million Sencha tea factory to Kangaita Tea Factory to boost value addition and farmer incomes.
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has defended the Tea Levy, dismissing claims that it is hurting Kenya’s tea industry and insisting the levy is essential for expanding export markets, funding research and improving farmers’ earnings.
Speaking during the handover of a Ksh360 million Japanese-funded Sencha green tea processing factory at Kangaita Tea Factory, Kagwe said recent market performance demonstrates that the levy has not affected tea sales as some stakeholders have claimed.
According to the Cabinet Secretary, tea uptake has risen to 93 per cent, the highest level recorded in years, contradicting assertions that the levy has created a glut in the market.
“Tea uptake has increased to 93 per cent compared to the levels witnessed three years ago. It is therefore not true that the Tea Levy has caused a glut,” said Kagwe.
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He explained that the 0.8 per cent Tea Levy is charged on tea buyers rather than farmers and will generate resources to finance global marketing campaigns, support research into improved tea varieties, strengthen climate resilience and promote value addition across the sector.
“Where will the money to promote Kenyan tea in international markets come from if we refuse to support the Tea Levy? Let us be honest, it is not the farmer paying this levy. It is the buyer,” he added.
Kagwe argued that Kenya cannot maintain its position as the world’s leading exporter of black tea without investing in innovation, research and market development, saying sustainable financing remains critical to improving returns to farmers.
He noted that ageing tea bushes have continued to reduce productivity and quality in many growing regions, making the development of high-yielding and climate-resilient tea varieties increasingly important.
The CS made the remarks after officially handing over the Ksh360 million Sencha green tea processing factory, which was donated by the Japan International Cooperation Agency (JICA).
The factory, which had remained idle since 2019 due to an ownership dispute, has now been transferred to Kangaita Tea Factory to begin commercial operations.
“This factory now belongs to the farmers of Kangaita. That is the message I was given by President William Ruto himself. We could not allow such an important investment to remain dormant while farmers waited to benefit,” Kagwe noted.
The facility is the only factory in Africa producing authentic Japanese Sencha green tea, positioning Kenya to tap into the high-value specialty tea market, where prices can reach up to 10 US dollars per kilogramme.
Kagwe thanked the Japanese government for supporting the project, saying the investment will strengthen technology transfer, enhance value addition and increase farmers’ incomes while creating employment opportunities for young people.
“The children of tea farmers must also benefit from this industry. Value addition creates industries, creates jobs and ensures the next generation sees agriculture as a profitable enterprise.”
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He added that Japan will continue supporting technical training programmes to equip Kenyan experts with skills in Sencha tea production, with the aim of establishing Kangaita as a continental centre of excellence in specialty tea manufacturing.
The CS also called for stronger protection of Kenya’s tea in international markets through geographical indications, saying some countries continue to repackage and sell Kenyan tea under their own brands.
Kagwe reaffirmed that proceeds from the Tea Levy will be reinvested in the sector through research, innovation, international market promotion and farmer empowerment, maintaining that the reforms are intended to secure the long-term growth and competitiveness of Kenya’s tea industry.
By Jonathan Mwinzi
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