KTDA chair Njeru blames 0.8% export levy for declines in tea market

Tea farmers across the country may receive lower bonus payments this year following challenges affecting tea sales at the international market.

Kenya Tea Development Agency (KTDA) Chairman Enos Njeru has expressed concern over the declining demand for Kenyan tea, attributing the situation to the introduction of a 0.8 per cent levy on tea exports.

Speaking to the media on Tuesday, Njeru said the additional export charge has increased the cost of Kenyan tea, prompting some international buyers to reduce or halt their purchases.

He noted that the reduced demand has led to a buildup of unsold tea stocks in warehouses as buyers continue to scale back their orders.

Njeru has urged the government to reconsider and remove the 0.8 per cent export levy, arguing that it is negatively affecting tea farmers by reducing their expected earnings and bonuses.

According to the KTDA chairman, removing the levy would help restore buyer confidence, improve tea exports, and enhance returns for millions of smallholder tea farmers who rely on the crop for their livelihoods.

Tea remains one of Kenya's leading foreign exchange earners and a key source of income for thousands of farming families. Stakeholders in the sector are now calling for urgent policy interventions to safeguard farmers' incomes and restore the competitiveness of Kenyan tea in the global market.