Tea farmers to benefit as government lifts taxes on packaging materials

Tea farmers in Kenya are set to benefit from a new government directive removing taxes on tea packaging materials.

The decision is aimed at easing production costs, improving the quality of tea, and raising farmers' earnings through increased value addition.

Agriculture Cabinet Secretary Mutahi Kagwe made the announcement on Wednesday after meeting with the leadership of the Kenya Tea Development Agency (KTDA) and representatives of smallholder tea factories from the West Rift region in Kericho.

He said the tax waiver is part of the government’s broader plan to strengthen the tea sector and make Kenyan tea more competitive globally.

Kagwe said high production costs had been a major challenge for tea factories, especially in the value addition chain, and that removing taxes on packaging materials would help address this problem.

He added that the government was committed to ensuring farmers earn more from their produce and assured stakeholders that Kenyan tea continues to enjoy demand in the international market.

CS Kagwe noted that quality plays a key role in determining market value.

"My Ministry will work closely with county governments to enhance agricultural extension services, ensuring better support for farmers," he stated.

According to Kagwe, premium-quality tea, which comes from the classic two leaves and a bud, attracts better prices and should be the standard for farmers aiming to benefit more from their harvest.

He also said the Ministry was training agripreneurs who will visit farms to advise tea growers on soil health, crop management, and effective use of inputs.

These agripreneurs will also guide farmers on good agricultural practices and how to add value to their produce.

Present during the meeting were Kericho Governor Dr. Erick Mutai, Agriculture Principal Secretary Dr. Kipronoh Ronoh, Tea Board of Kenya Chairman Ndung’u Gathinji, KTDA Vice Chair Erick Chepkwony, KTDA CEO Wilson Muthaura, TBK CEO Willy Mutai, County Commissioner Gilbert Kitiyo, and Kericho Agriculture CEC Magerer Langat.

Through this tax waiver, the government hopes to bring down production expenses while empowering tea farmers with better tools, training, and market access to grow their income.