Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has defended the controversial Tea Levy, saying it is strengthening rather than hurting Kenya’s tea industry, as he announced that tea uptake has climbed to 93 per cent the highest level recorded in recent years.
Speaking at Kangaita Tea Factory in Kirinyaga County during the handover of a Sh360 million Japanese-funded Sencha green tea processing plant, Kagwe dismissed claims that the levy has contributed to a glut in the tea market.
He said the latest market figures paint a different picture, arguing that demand for Kenyan tea has remained strong.
“Tea uptake has increased to 93 per cent compared to the levels witnessed three years ago. It is therefore not true that the Tea Levy has caused a glut,” Kagwe said.
The Cabinet Secretary maintained that the 0.08 per cent Tea Levy is paid by tea buyers and not farmers, insisting the funds are essential for expanding Kenya’s presence in international markets, financing research and supporting value addition.
He questioned how the country expects to remain a global tea powerhouse without investing in marketing and innovation.
“Where will the money to promote Kenyan tea in international markets come from if we refuse to support the Tea Levy? Let us be honest it is not the farmer paying this levy. It is the buyer,” he said.
According to Kagwe, the proceeds from the levy will be channelled into developing improved tea varieties, boosting climate resilience and strengthening the competitiveness of Kenyan tea in emerging export markets.
He also warned that ageing tea bushes are affecting yields and quality in several tea-growing regions, making research into high-yielding and climate-resilient varieties increasingly important.
The event also marked a major milestone for Kenya’s tea sector after Kagwe officially handed over the Japanese Sencha green tea processing factory to Kangaita tea farmers.
The Sh360 million facility, funded by the Japan International Cooperation Agency (JICA), had remained unused since 2019 because of a prolonged ownership dispute.
Kagwe said the government had resolved the stalemate to ensure farmers finally benefit from the investment.
“This factory now belongs to the farmers of Kangaita. That is the message I was given by President William Ruto himself. We could not allow such an important investment to remain dormant while farmers waited to benefit,” he said.
The plant is the first in Africa dedicated to producing authentic Japanese Sencha green tea, opening the door for Kenya to enter high-value specialty tea markets where prices are significantly higher than conventional black tea.
Kagwe said the investment represents a shift towards value addition, which he noted would increase farmers’ earnings while creating employment opportunities for young people.
“The children of tea farmers must also benefit from this industry. Value addition creates industries, creates jobs and ensures the next generation sees agriculture as a profitable enterprise,” he said.
He thanked the Government of Japan, JICA and Japanese taxpayers for supporting the project, adding that Japan will continue providing technical training to equip Kenyan specialists with the skills needed to produce premium Sencha tea.
The Cabinet Secretary said the long-term goal is to establish Kangaita as Africa’s leading centre for specialty tea production.
He also called for stronger protection of Kenya’s tea in international markets through Geographical Indications, arguing that some countries continue to repackage and market Kenyan tea as their own.
Kagwe reiterated that money raised through the Tea Levy would be reinvested in research, market promotion, innovation and other programmes aimed at improving returns for tea farmers, insisting the sector’s long-term growth depends on sustained investment.
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