Government Waives Packaging Taxes to Boost Tea Sector

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Kericho: The government through the Ministry of Agriculture and Livestock Development has waived off taxes on packaging materials in a bid to raise farmer’s productivity and incomes through value addition. Speaking during a stakeholders meeting held at a Kericho hotel with Kenya Tea Development Authority (KTDA)-managed smallholder tea factory directors in the West of Rift Region on Tuesday, Cabinet Secretary (CS) for Agriculture and Livestock Development Mutahi Kagwe said the government is committed to supporting the tea sector and working closely with key stakeholders to unlock new international markets for Kenyan tea.



According to Kenya News Agency, CS Kagwe emphasized the need for changes in the tea industry to benefit farmers. By removing taxes related to packaging materials, a major contributor to high costs on value addition, the government aims to support farmers. He urged tea farmers to focus on producing high-quality tea and adhere to leaf-quality plucking standards, defined by two leaves and a bud, to earn higher bonuses and attract better returns in international markets.



CS Kagwe criticized the practice of tea hawking for impacting the quality of Kenyan tea and vowed to crack down on it to protect farmers by ensuring they deliver their teas directly to factories where quality standards can be maintained. He also mentioned Kenya’s efforts to reclaim the Iranian Orthodox tea market and expand its presence in Pakistan. Orthodox tea is gaining popularity in the global market due to its traditional production methods that maintain the integrity of the tea leaves.



To further support farmers, CS Kagwe announced that the ministry will collaborate with county governments to enhance agricultural extension services and train agripreneurs. These agripreneurs will conduct field visits to guide farmers on soil quality, quality inputs, farming practices, and value addition techniques. Farmers will also benefit from training in new technologies, farming methods, and market trends to increase productivity and improve tea quality.



Kericho County Governor Eric Mutai shared that the county government is actively engaged in initiatives to support and promote the tea industry. They are building tea-buying centers, improving access roads to tea factories, and have removed cess taxes previously imposed on farmers.



The event was attended by several dignitaries, including Permanent Secretary (PS) State Department for Agriculture Dr. Kipronoh Ronoh Paul, Tea Board of Kenya (TBK) CEO Willy Mutai, TBK Chairman Ndugu Gathinji, KTDA Vice Chairman Erick Chepkwony, KTDA CEO Wilson Muthaura, Kericho County Commissioner Gilbert Kityo, and Kericho Agriculture CEC Magerer Langat among other invited guests.