Kenya's tea sector is entering a transformative era following unveiling of sweeping reforms designed to increase value addition, enhance farmer incomes, and ensure long-term sustainability.
Agriculture Cabinet Secretary Mutahi Kagwe said the government has factored in key tax incentives in the 2025/2026 Finance Bill, including the removal of excise duty on tea packaging materials and the elimination of VAT on value-added tea exports. "These measures will make it more affordable for our factories and processors to package and export value-added tea, increase competitiveness in the international markets and ultimately accelerate farmers' income," said the CS.
Gacharage who spoke at Gacharage Tea factory in Murang'a during celebrations to mark International Tea Day underscored the contribution of tea in the country's economy saying the set reforms will boost the sector and especially increase farmers' returns. "Tea is not just a beverage, it is a cornerstone of our economy, sustaining rural livelihoods and communities," he stated.
Kagwe emphasized that the crop supports over 650,000 smallholder farmers and contributes nearly a quarter of the country's foreign exchange earnings. "We are fully committed to building a value chain that works for farmers," he said, adding that the government aims to make the industry more competitive, fair, and profitable for producers.
