By Joel Chacha/Kenya,Nairobi,
Agriculture and Livestock Development Cabinet Secretary Sen. Mutahi Kagwe has strongly defended the Tea Levy Regulations 2026, stating that any attempt to retreat from these reforms would be a massive error for Kenya. While appearing before the National Assembly Departmental Committee on Agriculture and Livestock to discuss the 2026/27 budget estimates, the Cabinet Secretary maintained that the 0.8 percent levy on tea exports and the 100 percent tax on tea imports are essential tools for protecting the global identity of Kenyan tea.
The Cabinet Secretary informed the committee, chaired by Dr. John Mutunga, that the resistance currently being expressed by international buyers is a clear indication that Kenya is finally taking the right steps to secure its strategic interests. He explained that for too long, Kenyan tea has been sold in global markets without proper geographical indicators, allowing other countries to blend and rebrand it as their own. According to the Ministry, the levy is a strategic investment designed to fund the marketing, branding, and modernization of the local industry rather than a measure to penalize farmers.
During the session, Vice Chairperson Brighton Leonard Yegon pointed out concerns from buyers in Pakistan, but the Cabinet Secretary remained firm, arguing that tea is a business that requires sustainable funding to thrive. He noted that Kenya’s levy is still lower than the rates charged by competing tea-exporting nations. The Ministry plans to use these resources to push for more direct tea sales, ensuring that the product is recognized as a premium Kenyan brand worldwide.
Beyond the tea sector, the Ministry presented a budget estimate of KSh 79.06 billion for the upcoming financial year, which represents 2.7 percent of the national budget. These funds are intended to support the Bottom-Up Economic Transformation Agenda through initiatives such as fertilizer subsidies, irrigation projects, and climate-smart farming. The Cabinet Secretary emphasized that since agriculture contributes 22.5 percent to the national GDP and employs over 40 percent of the labor force, these investments remain critical for food security and export growth.
The discussions also touched on governance issues within tea, coffee, and sugar cooperatives. The Cabinet Secretary warned that the government would no longer sustain debt write-offs without demanding accountability from leadership. He urged farmers to elect responsible leaders and insisted that any future borrowing by these entities must be backed by a clear repayment plan. Additionally, the Ministry defended its policy on controlled rice imports to prevent shortages while local production is being expanded.
To improve coordination between the national government and local producers, the Ministry has requested support to recruit 1,450 Ward Agricultural Liaison Officers. This move aims to strengthen the link between farmers and policy makers through the Joint Agricultural Sector Steering Committee. The session concluded with a clear message that the administration intends to continue its aggressive path toward agricultural commercialization and value addition, with the tea reforms serving as a central part of this economic strategy.
