The Tea Board of Kenya (TBK) has asked the Mombasa County government to scrap the Ksh7,000 levy charged on every truck transporting tea to the port city. The board says the fee is eating into farmers’ bonuses and weakening the sector’s competitiveness.
TBK Chief Executive Willy Mutai explained that in every 21,000 kilos ferried to Mombasa, farmers lose about Sh0.50 of their bonus to the levy. With nearly 400,000 trailers moving tea to Mombasa each year, he warned that the deductions are taking away millions from smallholder farmers.
Mutai raised the concern during a three-day stakeholders’ meeting and tea tasting exercise in Mombasa. The event brought together 70 gardens under the smallholder sub-sector and factories managed by the Kenya Tea Development Authority (KTDA). He said farmers already bear high production and transport costs before bonuses are released, leaving them with reduced earnings once extra levies are added.
He further urged all 47 counties to drop advertising and branding charges on locally manufactured teas. According to him, the levies discourage value addition and limit job opportunities for youth working in branding and design. Removing them, he argued, would ease business costs and help promote local tea brands.
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The tea sector has long complained of multiple taxes and charges across the value chain. Reports indicate that farmers face more than 40 different deductions, including inspection, licensing and conformity fees. Industry analysts say the burden reduces farmers’ income and makes Kenyan tea less competitive in international markets.
Mombasa remains central to the trade as it hosts the world’s largest black tea auction. In the past, county authorities have faced pressure to review or remove certain fees on export-bound consignments to protect farmers. The latest call from TBK renews that pressure, highlighting the need to shield farmers’ earnings from extra deductions.
The government has also introduced reforms aimed at supporting the sector. Recently, excise duty and VAT on tea packaging materials were scrapped to encourage value addition and boost Kenya’s share in the branded tea market. The Agriculture Ministry said the move will promote local manufacturing and help reduce reliance on bulk exports, which attract lower prices.
Tea is one of Kenya’s top foreign exchange earners, generating over Ksh180 billion annually and supporting more than six million livelihoods. However, rising costs from transport, taxation and other charges continue to threaten farmer bonuses. Stakeholders warn that without harmonization of levies, confidence in tea farming may decline and the sector’s stability may be put at risk.
By Benedict Aoya
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