The Mountain Journal
The contentious tea levy has been suspended by the High Court after a petitioner moved to court six months after it was implemented.
The levy charged at Sh 2.28 per kg of made tea or 0.8 percent on the value of the auction or direct sale, implemented by the Tea Board of Kenya (TBK) on May 1.
The suspension of the tea levy by Lady Justice Josephine Mongare sitting in Machakos followed a suit lodged by Mazingira Party of Kenya Chairman Mr John Kiplangat who instituted the proceedings on behalf of small-scale tea farmers.
Through lawyer Marias Manyara, the Mazingira Green Party official, sued TBK, Cabinet Secretary in the Ministry of Agriculture Mutahi Kagwe, Attorney General, with KTDA listed as the Interested party.
The Judge ordered the matter to be mentioned on November 19 for further directions.
“Notice of Motion Application dated October 19 is certified urgent. Respondents shall equally file their submissions seven days after being served,” ruled the Judge.
In the plaint the petitioner argues that the tea levy has been punitive, where the tea buyers are charged at 0.8 percent of the auction value or customs value for direct sale.
“ The continued demand for the levy allegedly diminishes the proceeds accruing to small scale tea farmers and subject them to continuing financial prejudice,” argued the petitioner.
Tea importers pay 100 percent of the import value per consignment of made tea, as an effort to end dumping of low-quality teas in the Kenyan market.
Levy proceeds will be allocated as follows: 50 percent to the Tea Price Stabilization Fund, 20 percent to the Tea Research Institute (TRI), 15 percent to facilitate the Tea Board of Kenya (TBK) functions, and another 15 percent to the tea-growing Counties to champion infrastructure development.
The High Court order comes after all the tea meetings held by the KTDA Holding leadership in the Mt Kenya region ended with a plea to the government to suspend the tea levy and suggest amendments.