CS Kagwe emphasizes value addition in tea sector to create jobs, boost food production

Speaking during the handover of a Ksh.28.7 million grant cheque to Thumaita Tea Factory in Kirinyaga County, Kagwe said the government was prioritising value addition across key cash crops, including tea, coffee, avocado, macadamia, pyrethrum and cotton.

He noted that processing agricultural products locally would not only fetch better prices but also create employment opportunities through the establishment of modern processing factories.

"Nobody should be misled into thinking that money is being deducted from farmers. If we produce tea, we must sell it in Europe and other international markets. There are many varieties of tea there, and we must also be able to say, 'This is Kenyan tea," Kagwe stated. 

"We must promote our tea so that people buy it because the price at the auction depends on demand. When we market our tea well, prices will go up and the farmer will ultimately benefit."

Kagwe also urged tea farmers to support the recently introduced Tea Levy, reiterating that it is paid by tea buyers and not by farmers.

He explained that the proceeds from the levy will be reinvested in the tea industry to finance research, global marketing, climate resilience initiatives, innovation, and value addition.

The CS urged farmers to ignore misinformation about the levy, describing it as a long-term investment to secure the future of the tea sector.

The Cabinet Secretary maintained that sustainable financing is necessary if Kenya is to remain the world's leading exporter of black tea, adding that continued investment in research and market development is essential to improve farmers' incomes.

During the tour, CS Kagwe also presented a Ksh.65.2 million grant to Gathuthi Tea Factory, noting that the funds will enhance tea quality, reduce production losses, and strengthen the factory's capacity to produce premium tea for both local and international markets. 

He noted that collective marketing enables farmers to access larger markets, attract better buyers, reduce exploitation by middlemen, and secure higher returns from their produce.

Information released by the Ministry of Agriculture and the Tea Board of Kenya (TBK) revealed that the Tea (Levy) Regulations, 2026 came into effect on May 1, 2026, after being gazetted on April 1.

The regulations are made under Section 53 of the Tea Act, 2020 and effectively restore a levy that existed in a different form until 2016.

The government says the levy will not be charged directly to tea farmers and exporters will instead pay 0.8 per cent of the auction value of tea exports, or the customs value in the case of direct sales.

Tea importers, meanwhile, will pay a levy equivalent to 100 per cent of the value of imported made tea. 

The government describes the import charge as a protective measure designed to shield Kenyan tea producers from low-cost imports that could depress local prices and damage the reputation of Kenyan tea.