TBK defends the tea levy amid farmers’ protests on the accumulation of the made tea in the warehouses

The Mountain Journal  

The pressure mounted on the Tea Board of Kenya (TBK) over the return of the unsold teas in the warehouses, and forced them to explain to the stakeholders to avoid resistance.

TBK stated that 50 percent of the tea levy will be allocated to price stabilisation, 15 percent on maintenance of feeder roads in tea catchment areas, 20 percent in tea research and 15 percent on marketing of Kenya tea by the regulator.

This week, TBK and KTDA Holding appeared before the parliamentary agriculture committee to deliberate on the Tea Amendment Bill 2023 ordered by the Speaker Moses Wetangula, after the earlier deliberations were declared null and void.

In a statement, TBK CEO Willy Mutai said the levy charged at 2.28 per kg of made tea charged at the buyers at the auction, will facilitate tea farmers’ price stabilisation funds, maintenance of roads within the tea catchment, facilitate the Tea Research Institute and marketing of tea by the TBK.

Mr  Mutai explained that the tea import will be charged at 100 percent import duty at the value of the custom, to protect the local tea market against an influx of poor quality from other countries. 

 The regulator swiftly moved to clarify the alleged misinformation circulating regarding the tea levy and provide stakeholders with factual information on its purpose, implementation, and benefits to the tea industry. 

Kirimi Kinyua, a tea farmer, regretted that TBK moved to collect levies instead of formulating rules for the prosperity of the industry.

 Kinyua asked the the Agriculture Cabinet Secretary Mutahi Kagwe to conduct a permanence audit on the tea levy, to save the industry from imminent collapse. 

“ Lets know the genesis of the tea levy as it was not communicated to all the stakeholders with accumulation of high volumes in the warehouses when the buyers have relocated to cheaper alternatives,” said Kinyua.

Since the introduction of the tea levy on May 1 to date, 12,321,290 kgs of made tea remain in the warehouses as unsold teas, with  9,304,614 kgs from the east of the rift and 1,289,054kgs from the west of the rift.

 KTDA Holding Chairman Enos Njeru said they shared their concerns with the agriculture committee, with farmers making enquiries on the performance of the tea levy since the Tea Amendment  Bill 2023 was declared null and void.

“ We are waiting for the committee to give the way forward,” said Njeru.

Senator Kamau Murango described the levy as an illegal collection, as the regulation allegedly used to enforce it remains defective. 

“ This is a joke as parliament is not aware of such a levy,” said Murango.

Mutai defended the levy as the Kenya tea in the international market remains unaffected, given that the average price for Kenya tea is Sh 292.83 per kg.

“ The myth ally fears that the tea levy has caused accumulation of unsold tea stocks in Mombasa, while the introduction of the tea levy in May 2026 coincided with the high production of tea occasioned by high rainfall in tea-growing areas,” he said.

The report underlines myths surrounding the levy, with claims it will lower the competitiveness of Kenyan tea in the global market.