The government has waived taxes on tea packaging materials to reduce production costs and enhance profitability for smallholder farmers, as part of a broader strategy to revitalize the tea sector.
Agriculture Cabinet Secretary Senator Mutahi Kagwe announced the move during a consultative meeting with chairpersons of KTDA-managed smallholder tea factories from the West of Rift region in Kericho.
He emphasized that packaging materials are a major cost driver in the value addition process, and removing the tax burden will help farmers retain more earnings.
“We are focused on removing cost barriers in tea production, starting with packaging materials, which significantly affect value addition expenses,” said CS Kagwe. “This tax waiver is a direct intervention to improve farmer profitability.”
The CS reaffirmed the government’s commitment to boosting productivity and raising incomes in the tea industry. He also assured stakeholders that international markets for Kenyan tea remain strong, but urged farmers to focus on quality to fully tap into this potential.
“High-quality tea commands better prices globally. Quality must be our priority,” he said.
To further support the sector, the government is partnering with county administrations to strengthen agricultural extension services. An initiative is underway to train agripreneurs who will provide on-farm guidance to farmers on soil health, crop husbandry, effective input use, and value addition techniques.
These reforms are part of a wider government strategy to make Kenyan tea more competitive on the global stage while ensuring better returns for local farmers.