HUB FACT SHEETS, INFOGRAPHICS & SUCCESS STORIES Trade & Investment News Read Our Blog Newsletters

Kenya reviews tea taxes to boost main foreign exchange earner

Published on April 26, 2016

Kenya is reviewing taxes and levies on tea production after industry executives and farmers said the charges were putting them at a competitive disadvantage.

Producers of Kenya's No. 1 export earner complain about a 1 per cent levy on tea sold at a weekly auction in Mombasa and a 16 per cent value added tax on tea processed and consumed locally.

The East African nation is the world's leading exporter of black tea, a crop that offers a livelihood to thousands of small-scale growers who complain not enough cash reaches them.

Kenya earned Ksh125.25 billion ($1.24 billion) from tea exports last year on output of 399.21 million kg. A slightly stronger shilling means officials expect earnings to slip to Ksh115 billion to Ksh120 billion this year. Read more. Source | East African