Tea Board Defends Tea Levy Amid Concerns From Farmers and Industry Players
By Shadrack Mutai – Nairobi, Kenya
The Tea Board of Kenya (TBK) has sought to reassure farmers and industry stakeholders over the newly introduced tea levy, insisting that the charge is aimed at strengthening the sector rather than burdening growers.
The Board dismissed claims that the levy has led to a buildup of unsold tea stocks at the Mombasa Tea Auction or contributed to declining tea prices. According to TBK, the current market situation is largely driven by seasonal increases in tea production, reduced demand in some key export markets and logistical challenges arising from geopolitical tensions affecting global shipping routes.
TBK noted that recent auction sales have remained strong, with an average of 77 percent of tea offered finding buyers, an improvement from the 70 percent recorded during a similar period last year.
However, the Board expressed concern over the withdrawal of some teas from auction despite meeting reserve prices, warning that the practice could ultimately hurt farmers by attracting lower returns when the teas are reintroduced to the market.
On tea prices, the Board maintained that fluctuations are influenced by global demand and production cycles rather than the levy itself. It pointed out that average auction prices during the April-May 2026 peak production season stood at USD 2.24 per kilogram, compared to USD 1.99 per kilogram during the same period in 2025.
Addressing fears that farmers will shoulder the cost of the levy, TBK clarified that the charge is paid by exporters and importers at the point of export and import, not directly by tea growers. The Board said the funds collected will support tea price stabilization, research, maintenance of feeder roads in tea-growing areas and the promotion of Kenyan tea in international markets.
TBK further argued that the levy will not make Kenyan tea less competitive globally, noting that similar or higher charges exist in other major tea-producing countries including Sri Lanka, India, Bangladesh and Pakistan.
Tea Board of Kenya CEO Willy Mutai said the levy is intended to support value addition, market expansion, research and infrastructure development, all of which are critical to the long-term sustainability and growth of Kenya’s tea industry.
“The Tea Board of Kenya is committed to working with stakeholders to build a resilient and sustainable tea sector in Kenya,” he said.
