Tea Board of Kenya Defends Tea Levy Regulations 2026 as Key to Sector Growth

By Gedion Nzyoki 

• The Tea Board of Kenya has defended the Tea Levy Regulations 2026, describing them as a key reform aimed at strengthening the tea sector through improved infrastructure, accountability, and competitiveness
• The Board says the levy will support development of critical tea infrastructure and sector services while promoting sustainable growth across the tea value chain
• The regulations are part of broader government efforts to enhance efficiency in the tea industry, expand markets, and improve long-term earnings for farmers

Nairobi, Kenya | May 13, 2026 – The Tea Board of Kenya (TBK) has defended the Tea Levy Regulations 2026, describing them as a critical reform measure aimed at strengthening the country’s tea sector through improved infrastructure, accountability, and enhanced competitiveness in the global market.

Tea Board of Kenya CEO Mr. Willy Mutai (center) is joined by board members as they pose for a group photo following a Wednesday sensitization meeting with Journalists (Photo: Courtesy)

Speaking on Wednesday afternoon at the Board’s offices, Tea House in Nairobi, during a sensitization meeting attended by journalists, editors, and other media stakeholders, the Tea Board of Kenya Chief Executive Officer, Mr. Willy K. Mutai, said the regulations are part of broader tea sector reforms aimed at supporting sustainable growth and profitability across the tea value chain.

The Board stated that the tea sector remains one of Kenya’s most important agricultural value chains, sustaining millions of livelihoods, generating substantial foreign exchange earnings for the country, and playing a key role in rural economic development.

“The tea sector remains one of the most strategic agricultural value chains. It supports millions of livelihoods, contributes significantly to the country’s foreign exchange earnings, and immensely supports rural economic development,” CEO Mutai said.

Tea Board of Kenya CEO Mr. Willy Mutai delivers remarks during a sensitization meeting with journalists, editors, and other media stakeholders. (Photo: Tea Board of Kenya/Facebook).

According to TBK, the Tea Levy Regulations 2026 establish a framework for the collection and management of tea levy funds aimed at supporting infrastructure development in tea-growing areas. The funds will be used to improve key facilities such as tea access roads, collection centers, and other essential infrastructure that enhances production, transport, and market accessibility.

“The regulations provide a clear legal framework for the imposition, collection, and utilization of the tea levy to support infrastructure development within tea-growing areas. The tea levy will contribute towards the improvement of tea roads, tea collection centers, and other infrastructure that directly supports tea production, transportation, and market access,” he added.

The Board emphasized that the effective implementation of the regulations will rely heavily on accurate public communication, strong stakeholder understanding, and investor confidence within the tea industry. It noted that the media plays a critical role in helping farmers, factories, traders, and the general public understand policy changes and their intended benefits through factual, balanced, and professional reporting.

The sensitization meeting aimed to clarify the objectives of the Tea Levy Regulations 2026, including the levy framework, compliance requirements, operational procedures, expected sector benefits, and the roles of various stakeholders in implementation.

TBK reiterated its commitment to transparency, accountability, and open engagement with all stakeholders, including media practitioners, describing the media as a key partner in promoting awareness of ongoing tea sector reforms.

Going forward, the Board said it will continue to facilitate timely access to information, hold regular stakeholder briefings, and promote constructive dialogue to enhance public understanding of tea sector reforms, improve Kenya’s global tea competitiveness, and support the government’s broader agenda on agriculture, exports, value addition, job creation, and economic transformation.

The Board further encouraged the media to continue showcasing the positive story of Kenyan tea while promoting informed public discourse on reforms and opportunities within the sector.

“We encourage the media to continue telling the positive story of Kenyan tea while supporting informed public discourse on sector opportunities and reforms,” Mutai said.

An Inside Look at the Tea (Levy) Regulations 2026

The Tea (Levy) Regulations 2026, introduced under Section 53 of the Tea Act, 2020 and operationalized through Gazette Notice No. 82 of April 1, 2026, establish a structured funding mechanism aimed at supporting the long-term competitiveness and sustainability of Kenya’s tea industry.

The regulations introduce a tea levy set at 0.8% of the auction value or customs value for direct sales, payable at the point of export. Imported made tea attracts a 100% levy on the import value per consignment. The levy is collected from exporters and importers, meaning that tea consumers ultimately bear the cost, while tea growers are not directly charged.

Revenue collected through the levy is earmarked for key sector priorities as outlined in the Tea Act, 2020. These include income and price stabilization for tea growers (50%), research (20%), infrastructure development (15%), and regulatory strengthening (15%). This funding model is designed to support critical interventions across the tea value chain.

The government argues that the levy is necessary to address persistent structural challenges in the sector, including low tea prices driven by limited market access, weak branding and promotion, declining quality, limited product diversification, and inadequate research into new tea varieties. The levy is therefore positioned as a tool to enhance returns to farmers and strengthen Kenya’s global tea competitiveness.

A key focus of the regulations is market expansion and value addition. The framework supports strategies to open new markets in regions such as China, West Africa, Russia and CIS countries, North America, and Asia. It also includes plans to establish warehousing hubs in strategic locations, including the DRC, UAE, Ghana, and China. A multi-stakeholder committee is being constituted to drive these market development initiatives.

In addition, the regulations aim to reduce reliance on bulk exports by promoting value addition through packaged, branded, and specialty teas. They also seek to improve research capacity to enhance tea quality and diversify products, while strengthening regulation to curb malpractices such as green leaf trading irregularities, counterfeiting of premium tea marks, governance gaps, and exploitation of farmers.

To support industry growth, exemptions apply to value-added teas packed in containers not exceeding 10kg, tea extracts and aromas, and Kenya tea value-added within Export Processing Zones (EPZ) or Special Economic Zones (SEZ) for local consumption. This is intended to encourage domestic processing and value addition.

On implementation concerns, the Tea Board of Kenya (TBK) has provided transitional arrangements. Exporters who had already purchased tea or signed contracts before the levy took effect on May 1, 2026, may qualify for refunds, provided they submit proof of purchase, levy payment, and contractual obligations.

Overall, the Tea (Levy) Regulations 2026 form part of the government’s broader Bottom-Up Economic Transformation Agenda (BETA), which seeks to revitalize agriculture, improve farmer earnings, and strengthen Kenya’s position in global tea markets.