Kenya scraps taxes on packaging materials to boost tea exports
The CS added that the policy will not only improve the market appeal of Kenyan tea but also channel greater profits back to producers and the business community.
Kenya is moving to boost its tea exports by removing taxes on packaging materials, a step Agriculture Cabinet Secretary Mutahi Kagwe says will keep the tea fresher, improve traceability, and raise farmers’ incomes.
Speaking at the North America Tea Conference in South Carolina, Kagwe announced that the government has scrapped taxes on packaging materials for agricultural products. The move, he said, enables exporters to package tea at source according to international market standards and deliver products directly to shelves abroad.
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“By packaging at origin, we eliminate unnecessary costs, improve competitiveness, and strengthen Kenya’s position in the global tea market,” Kagwe told industry stakeholders.
He added that the policy will not only improve the market appeal of Kenyan tea but also channel greater profits back to producers and the business community.
Kenya remains one of the world’s leading tea producers, recording an output of 598.47 million kilogrammes in 2024, a 4.95 per cent increase from the previous year. The growth was attributed to favourable weather, expanded processing capacity, and government-subsidised fertiliser programmes.
The CS stressed that even amid challenges such as shifting tariffs in global markets, opportunities exist for Kenyan agriculture. He cited macadamia exports as an example, noting that while South African nuts now face a 35 per cent tariff, Kenya’s macadamia exports attract only 10 per cent, giving the country a competitive edge.
"We have removed taxes on packaging materials for agricultural products, allowing us to package teas at source according to market specifications. This means that we can now deliver direct to share of teas with guaranteed freshness, traceability, higher value addition for farmers as well as the business community," said Kagwe.
Kagwe was accompanied by Tea Board of Kenya Chief Executive Officer Willy Mutai, Kenya Tea Development Agency (KTDA) Holdings Limited Chairperson Geoffrey Kirundi, CEO Wilson Muthaura, and Kenyan Ambassador to the United States David Kerich.
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