Mutahi Kagwe Defends Tea Levy as Key to Protecting Kenya’s Global Tea Identity

Agriculture Cabinet Secretary Mutahi Kagwe has defended the newly introduced Tea Levy Regulations 2026, saying the reforms are necessary to secure the future of Kenya’s tea industry and improve farmers’ earnings.

Speaking before the National Assembly Departmental Committee on Agriculture and Livestock, Kagwe dismissed criticism from exporters and international buyers who argue that the levy could increase the cost of Kenyan tea in the international market.

Under the new regulations, the government introduced a 0.8 percent levy on tea exports and a 100 percent levy on tea imports. According to Kagwe, the funds raised will support tea marketing, research, infrastructure and value addition programmes aimed at strengthening the sector.

“Kenyan tea is globally known, but in many markets, there are no geographical indicators to show it is Kenyan tea,” Kagwe told lawmakers, insisting that the country must do more to protect its identity in the global market.

The CS warned against pressure to withdraw the levy, saying reversing the reforms would hurt long-term efforts to modernize the industry.

“Going back would be a huge mistake,” he said.

Kagwe argued that several tea-producing countries already impose similar levies to finance marketing and industry development, adding that Kenya risks falling behind competitors if it fails to invest in its tea sector.

The new levy has, however, sparked concern among some exporters and international buyers who fear it could reduce Kenya’s competitiveness at the Mombasa Tea Auction and increase costs for traders with existing contracts.

Despite the criticism, Kagwe maintained that the reforms are designed to benefit farmers by creating sustainable funding for programmes that will expand markets and increase the value of Kenyan tea abroad.

He said the government remains committed to ensuring Kenya retains its position as one of the world’s leading tea exporters.