Kenya’s largest tea export market, Pakistan, has formally protested the newly introduced 0.8 per cent export levy on tea, warning that the measure will raise import costs and strain an already fragile market.
In a letter addressed to the Tea Board of Kenya (TBK) Chief Executive Officer Willy Mutai, the Pakistan Tea Association (PTA) urged Kenyan authorities to reconsider the levy introduced under the Tea (Levy) Regulations, 2026.
PTA said the new charge is expected to increase import costs by about three US cents per kilogram at a time when Pakistani businesses are grappling with rising fuel prices, expensive freight and shipping charges, inflation, and currency volatility.
“The newly imposed levy is expected to increase costs by approximately three US cents per kilogram, which is significant given the prevailing economic conditions in Pakistan,” the letter dated May 6, 2026, reads.
PTA Chairman Muhammad Altaf added that the additional charges could weigh heavily on consumers in Pakistan’s price‑sensitive market. “Price sensitivity remains high in our market, and even modest increases can lead to reduced consumption,” he said.
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The protest has been copied to the Kenya High Commission, the East Africa Tea Trade Association (EATTA), and business groups in Pakistan. Among the companies that have raised concerns are Tapal Tea, Eastern Products, Lipton Teas, and bulk traders operating in Pakistan.
Pakistan remains the leading destination for Kenyan tea exports and is a critical market for the country’s tea sector, which is one of Kenya’s top foreign exchange earners.
The PTA emphasised that the long‑standing trade relationship between the two countries has been mutually beneficial and urged Kenyan authorities to maintain a stable and competitive pricing environment to sustain demand.
PTA further warned that higher import costs could gradually erode demand for Kenyan tea if prices become less competitive.
By Masaki Enock
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