Tea Board of Kenya (TBK) has issued a clarification addressing misinformation surrounding the newly introduced Tea Levy.
TBK insists the levy is not responsible for unsold tea stocks in Mombasa, price fluctuations, or reduced global competitiveness.
The board says no abnormal tea stockpile exists at the Mombasa auction.
By Benedict Aoya
The Tea Board of Kenya (TBK) has issued a sweeping clarification addressing what it describes as widespread misinformation surrounding the recently introduced Tea Levy, insisting the charge is not responsible for unsold tea stocks in Mombasa, price fluctuations at the auction, or a loss of global competitiveness for Kenyan tea.
In a statement dated June 12, 2026 and signed by TBK Chief Executive Officer Willy Mutai, the board tackled four specific myths head on, providing data and comparative benchmarks to defend the levy’s design and purpose.
No abnormal stock pile, TBK insists
On claims that the Tea Levy has caused an accumulation of unsold tea in Mombasa, TBK was categorical that no such abnormal stockpile exists.
The board said the introduction of the levy in May 2026 coincided with a high production period driven by heavy rainfall in tea growing areas, a low demand season tied to summer weather conditions in key markets and prolonged shipping delays caused by the ongoing conflict in the Middle East.
TBK said the average weekly uptake for Kenya tea at the Mombasa auction stands at between 7 and 8 million kilograms, while weekly supply during peak production season climbs to between 9 and 11 million kilograms. During such high production periods, auction absorption rates typically range between 70 and 80 percent.
“In the last five auctions for May and June, the tea sold stood at 77 percent of the tea on offer. However, this was higher compared to the same period last year of 70 percent,” the board stated.
TBK did, however, flag a concern over the Kenya Tea Development Agency (KTDA), saying the board had noted with concern instances where KTDA had withdrawn teas from auction even when the bid price met the factory’s ask price. The board described the practice as a market distortion and warned that such teas, when reoffered three weeks later, attracted lower prices, ultimately harming the tea grower.
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Price shifts are seasonal, not levy driven
On the second myth that the Tea Levy has caused price fluctuations at the auction, TBK said price movements at the Mombasa auction are a normal seasonal market trend influenced by production volumes and prevailing global demand, not the levy.
The board noted that in recent months, high production and low demand driven by geopolitical and socio-economic challenges in key tea markets had weighed down prices. Over the past five years, auction prices have averaged between USD 1.99 and USD 2.46 per kilogram of made tea during the high production period and between USD 2.19 and USD 2.66 during the low production season.
TBK added that during the April to May 2026 high production season, average prices for Kenya tea at the auction stood at USD 2.24 per kilogram, up from USD 1.99 during the same period in 2025 and on par with prices recorded in the same season of 2024.
Levy falls on exporters and importers, not farmers
Addressing the widespread belief that the Tea Levy is charged directly to farmers, TBK clarified that the levy is a consumer tax collected at the point of export and import, payable by the tea exporter or importer, not the grower.
Based on an average Kenya tea price of USD 2.27 per kilogram recorded in 2025, the board said the international consumer would pay approximately USD 0.018 per kilogram of made tea, equivalent to Kshs 2.36.
For imports, TBK said a 100 percent import duty applies as a deterrent to tea imports, with the aim of protecting the local tea market from an influx of poor quality tea from other countries.
The board also outlined how levy proceeds will be distributed: 50 percent toward tea farmers’ price stabilization, 20 percent into tea research, 15 percent for maintenance of feeder roads in tea catchment areas, and 15 percent toward marketing of Kenya tea by TBK.
Kenya’s global position remains competitive
On the fourth myth that the Tea Levy will erode Kenya’s competitiveness in global markets, TBK argued the opposite, saying the levy is designed to promote competitiveness through value addition, market development, research and infrastructure development in tea growing counties.
The board noted that Kenya tea’s average price of USD 2.27 per kilogram compares favorably against tea from Sri Lanka, India, China and Rwanda, whose average prices range between USD 3.50 and USD 4.50 per kilogram, leaving Kenya’s international competitiveness unaffected.
TBK also pointed out that comparable levies are commonplace among competing tea producing and consuming nations. In Sri Lanka, a Tea Board cess is charged at between 4 and 10 rupees per kilogram, equivalent to between Kshs 1.61 and Kshs 4.03, plus a promotion and marketing levy of 3 rupees per kilogram, bringing the total to the equivalent of between Kshs 2.82 and Kshs 5.24 per kilogram of made tea.
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In India, a 5 percent Goods and Services Tax applies to tea. In Pakistan, tea faces an import duty of 10 percent, a sales tax of 18 percent, income tax of 6 percent, a landing charge of 1 percent and an infrastructure fee of 1.05 percent, which when compounded amounts to close to 30 percent.
“Compared to the tea levy charged by other tea producing countries, Kenya charges the least at a rate of 0.8 percent of the auction price, which translates to Kenya Shillings 2 to 3 per kilogram of made tea,” TBK stated.
The board said it remains committed to working with all stakeholders to build a resilient and sustainable tea sector in Kenya.
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