The Kenya Tea Development Agency (KTDA) has voiced opposition to any form of new taxation on tea producers, saying the focus should be on safeguarding farmers’ earnings rather than draining them through additional levies.
Speaking on behalf of the agency, KTDA Chief Executive Officer Wilson Muthaura affirmed the agency’s stance, insisting that their role was to shield farmers from financial strain.
“Our priority as KTDA is to protect their incomes and ensure that every shilling they earn from their tea translates to better livelihoods for their families,” Muthaura stated.
Muthaura also warned that introducing new charges would erode the gains made by smallholder growers, who form the backbone of Kenya’s tea sector.
The agency, which manages operations for over 650,000 tea farmers, said that decisions affecting agriculture should reflect the realities of those working the soil—not undermine them.
Read More
“Policy must empower the farmer, not burden them. We must create a fair environment that rewards hard work and maintains Kenya’s position as a global leader in quality teas,” Muthaura noted.
His concerns come shortly after the government imposed a 4 per cent Sugar Development Levy, which now applies to both millers and importers.
The charge is calculated based on either the ex-factory price for locally processed sugar or the cost, insurance, and freight value for imports.
Though the new levy does not directly target the tea industry, Muthaura called on lawmakers to avoid adopting a similar approach for tea.
He advised Parliament to seek input from those within the sector before passing legislation that might reduce farmers’ take-home pay.
According to him, KTDA remains focused on boosting farm returns through better governance, eco-friendly practices, and use of technology—efforts he fears could be undone if tax policies turn punitive.
“We must create a fair environment that rewards hard work and maintains Kenya’s position as a global leader in quality teas,” he added.
Kenya’s tea exports continue to be a leading source of foreign exchange, with ripple effects across transport, packaging, and retail sectors.
Any hit to the industry, Muthaura warned, would impact millions beyond the farm gate.
As fears of cross-sector tax replication grow, KTDA is making it clear: farmer welfare must come first.
Legislative support, not fiscal punishment, is what the agency is urging from the nation’s policymakers.