Tea Board suspends tea levy collection

The Tea Board of Kenya (TBK) has temporarily halted the collection of the tea levy on exports and imports of tea, as ordered by the High Court. This suspension, effective immediately, applies to tea buyers, exporters and importers operating in Kenya. The interim court order has suspended the levy under the Tea (Levy) Regulations, 2026, until the court can hear and decide on an application challenging its collection.

The TBK has requested the Kenya Revenue Authority (KRA) to suspend the levy collection as well. Despite this suspension, industry players are advised to continue adhering to other regulations governing tea export and import, such as licensing, registration, permits, quality standards and customs procedures. The move comes as Kenya continues to manage its tea industry, a crucial export sector that provides foreign exchange and supports numerous livelihoods through farming, processing and trade.

The suspension follows months of opposition from tea farmers and industry stakeholders against the proposed tea levy. The TBK maintains that the new charge will not reduce farmers' earnings and will instead bolster the tea sector through targeted reinvestment. Under the proposed regulations, tea exports will incur a levy equivalent to 0.8 percent of the auction or customs value for direct sales, while imported bulk tea will attract a levy of 100 percent of the auction or customs value.

However, farmers, tea factories, domestic traders, aggregators and value-added tea products will be exempt from the levy. The TBK has launched a public awareness campaign to counter misconceptions about the levy proposal, particularly the claim that it will lower farmers' incomes.