Tea farmers could be headed for another battle after Members of Parliament rejected a proposal by the Tea Board of Kenya (TBK) to introduce a 0.8 per cent levy on tea exports, arguing that the move would only pile more pressure on growers.
The proposal, which is part of recommendations under the Tea (Amendment) Bill, 2023, was presented by the Tea Board before the National Assembly’s Agriculture and Livestock Committee.
But lawmakers say the levy should not see the light of day.
Gatundu South MP Gabriel Kagombe led the criticism, insisting that Parliament had never approved the charge and warning the Tea Board against attempting to reintroduce what he described as an unfair tax on farmers.
“We want to tell the Tea Board of Kenya that the tea farmer will not pay you 0.8 per cent. In fact, the tea farmer will not pay you any levy. We removed that tax over ten years ago because we saw it was oppressive to the farmer and you will not reintroduce it,” Kagombe said.
He argued that the proposal has no legal backing since lawmakers are still considering changes to the Tea Act.
“It is illegal because Parliament has not passed it. We are currently discussing the Tea Act and as a committee we made it clear that we will not allow any levy to be imposed on farmers,” he added.
The Tea Board wants the levy reduced from the initially proposed one per cent to 0.8 per cent of the value of bulk tea exports. According to the regulator, the money would be used to fund tea research, strengthen regulation, open up new markets and improve infrastructure in tea-growing regions.
However, MPs questioned whether the cost would eventually be deducted from farmers’ earnings.
Some legislators noted that the levy could translate to more than KSh3 per kilogramme of tea, warning that growers, who are already struggling with rising production costs, would end up carrying the burden.
Runyenjes MP Muchangi Karemba also questioned why stakeholders in the tea sector appeared divided over the proposal, pointing out that the Tea Board, tea farmers and the Kenya Tea Development Agency (KTDA) were not reading from the same script.
The resistance is not coming from Parliament alone.
The East Africa Tea Growers Association has also opposed the proposed levy, warning that it could make Kenyan tea less competitive in the international market. The association argues that neighbouring tea-producing countries are already securing better prices than Kenya at the Mombasa Tea Auction, and introducing another export charge could further weaken the country’s position.
Kagombe also raised concerns over the number of charges tea farmers are already paying, particularly in Kiambu County.
He claimed farmers are subjected to more than seven county levies, including an infrastructure levy charged on produce being transported from farms to factories.
According to the MP, farmers continue to spend heavily on production, transport and factory operations, yet still receive little support from the government in areas such as roads, electricity and water.
He added that residents had written to the Kiambu County Government seeking a meeting over the issue, but the discussions have since been postponed.
The latest dispute sets the stage for another standoff over reforms in the tea sector, with lawmakers maintaining that any changes affecting farmers’ earnings must first receive Parliament’s approval.
