- Tea farmers could receive lower bonuses due to weak export sales.
- KTDA blames the 0.8 per cent export levy for reducing demand for Kenyan tea.
- The agency wants the government to scrap the levy to protect farmers’ earnings.
Tea farmers across the country could receive lower bonus payouts this year due to challenges affecting tea sales in the international market.
Kenya Tea Development Agency (KTDA) chairman Enos Njeru has attributed the decline in demand for Kenyan tea to a 0.8 per cent levy on tea exports, saying the charge has made the commodity more expensive for international buyers.
Speaking on Tuesday, Njeru said the levy has increased the cost of Kenyan tea, forcing some buyers to scale down or suspend their purchases.
He said the fall in demand has led to a growing stockpile of unsold tea in warehouses as international buyers continue to cut back.
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Njeru called on the government to scrap the levy, saying it is eroding farmers’ earnings by lowering the returns and bonuses they receive.
He argued that removing the levy would help rebuild buyer confidence, boost exports and improve incomes for the millions of smallholder farmers who depend on tea production for their livelihoods.
Tea remains one of Kenya’s top foreign exchange earners and a vital source of income for thousands of households. Industry players are now urging the government to introduce urgent policy measures to protect farmers’ earnings and strengthen the competitiveness of Kenyan tea in the global market.
By Frank Mugwe
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