Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has defended the Tea Levy, saying recent market performance does not support claims that the charge is hurting Kenya’s tea industry.

Speaking in Kirinyaga County on Thursday, Kagwe said tea uptake had reached 93 per cent, which he described as the highest level recorded in recent years. He said the figure indicates that demand for Kenyan tea remains strong despite concerns raised by some tea farmers and factory officials over the levy.

“Tea uptake has reached 93 per cent, the highest in years. The Tea Levy is not crippling the tea industry as has been claimed,” Kagwe said.

The Cabinet Secretary said the levy provides funding for programmes that support the development of the tea sector, including research, international marketing and value addition.

“The levy is critical to financing research, global marketing and value addition that will secure the future of the sector,” he added.

The Tea Levy is provided for under the Tea Act, 2020, and is used to finance activities intended to improve the performance and competitiveness of Kenya’s tea industry. According to the Ministry of Agriculture, the funds support tea research, promotion of Kenyan tea in international markets, quality improvement initiatives and value-addition programmes.

Kagwe’s remarks come amid continued debate over the levy, with some tea stakeholders arguing that it increases operational costs and reduces farmers’ earnings. Some factory directors and growers have previously called for the levy to be reviewed or abolished, citing rising production expenses and pressure on the sector.

The Cabinet Secretary, however, maintained that current market data does not indicate a decline in demand for Kenyan tea. He argued that continued investment in research and market promotion is necessary to sustain the industry’s competitiveness in export markets.

Kenya is among the world’s leading exporters of black tea, with the crop contributing significantly to foreign exchange earnings and supporting the livelihoods of hundreds of thousands of smallholder farmers. Government agencies have consistently identified market diversification and value addition as priorities for increasing returns from tea exports.

While citing the 93 per cent uptake figure, Kagwe did not announce any changes to the Tea Levy or indicate that the government intends to review the current framework governing its collection and use.

The Cabinet Secretary’s remarks represent the government’s position on the levy. Stakeholders who oppose the charge have continued to call for reforms, and discussions on the future of the levy are expected to continue through industry consultations and policy engagements.