The government has waived taxes on tea packaging materials to cut costs during value addition, the Ministry of Agriculture has announced.
Tea, a major income earner for Kenya, will now be sold at relatively lower prices, as the government rolls out the tax waivers as announced by Agriculture CS Mutahi Kagwe. Kagwe said the move will help boost productivity and help raise income for local farmers "The government is keen on revitalising the tea sector to boost productivity and raise farmers' incomes through value addition.
In a move aimed at lowering production costs, the government has waived taxes on packaging materials, a major contributor to high costs on value addition,'' read part of a statement by the Ministry of Agriculture. A Kenyan farmer picking tea from a farm in Kericho County.
Photo Ministry of Agriculture Kagwe made the announcement during a consultative meeting in Kericho with chairpersons of Kenya Tea Development Agency (KTDA)-managed smallholder tea factories from in Rift Valley region.