By John Kariuki
KTDA Holdings Limited Group Chief Executive Officer, Wilson Muthaura, has welcomed calls to scrap the proposed one percent levy on tea sales contained in the Tea (Amendment) Bill, 2023.
Muthaura noted that Kenya’s tea farmers, who form the backbone of the industry, are already overburdened by numerous taxes and operational costs. Introducing an additional levy, he warned, would only reduce farmers’ earnings and undermine their morale.
“This industry thrives because of the resilience of our smallholder farmers. Our priority as KTDA is to protect their incomes and ensure that every shilling they earn from their tea translates to better livelihoods for their families,” Muthaura said.
He echoed sentiments earlier expressed by KTDA National Chairman, Senior Counsel Chege Kirundi, who urged Parliament to consider the plight of smallholder farmers. Muthaura stressed that the proposed levy would erode gains made in making Kenyan tea competitive globally, potentially discouraging new investment in the sector.
Kenya’s tea industry is one of the country’s most significant foreign exchange earners, supporting over 650,000 smallholder farmers and millions more indirectly through the value chain. Muthaura noted that KTDA’s focus remains on improving farmers’ returns through better management, technological innovation, and sustainable practices.
He appealed to legislators to adopt a consultative approach with industry stakeholders before enacting measures that could negatively impact production and earnings. “Policy must empower the farmer, not burden them. We must create a fair environment that rewards hard work and maintains Kenya’s position as a global leader in quality teas,” Muthaura added.
