State waives levies for tea farmers

The PS in the ministry of agriculture Dr Richard Lesiyampe tours various exhibition stands after opening the First African Tea Science Symposium at Enashipai Spa in Naivasha. He said that starting July 1st, tea farmers will be exempted from paying levies and cess as part of reducing cost of production. (PHOTO: ANTHONY GITONGA/ STANDARD)

Tea farmers will be exempted from paying levies and cess from July 1.

The move is aimed at reducing the cost of production and increasing the country’s annual production as demand for the commodity rises globally.

This is one of the recommendations made by the task force on tea which has already handed its report to the Ministry of Agriculture.

According to the Permanent Secretary Richard Lesiyampe, the Government is committed to supporting the sector, one of the leading foreigner exchange earners.

“From the 1st of July various cess and levies charged on tea will be waived as we seek to address the cost of production and increase acreage under tea farming,” he said.

Dr Lesiyampe said that tea is a leading income earner for the country, noting that in 2015 the country earned Sh125 billion, the highest amount ever, from exporting the commodity.

“Kenya is the third leading producer of tea accounting for 11 per cent of global production and the sector employs five million people,” he said.

Various challenges

The PS was speaking to journalists after he opened the first African Tea Science Symposium at the Enashipai Spa in Naivasha.

The PS noted that the sector faces various challenges the main one being climate change.

Unpredictable weather patterns, he said, had affected tea production. He said that the Government was working with various stakeholders to address the effects of climate change

“Other challenges facing the sector include high cost of production, low levels of value addition and fluctuating market prices,” he added.

Lesiyampe also expressed concern over the low consumption of tea in the country, noting that only five per cent of the product was consumed locally.

Malawi High Commissioner to Kenya Perks Ligoya complained about the cost of transporting tea from Malawi to the Port of Mombasa.

profit margin

Dr Logoya noted that high taxation in his country and international standards mainly on residue levels were affecting production.

“This is reducing the profit margin for farmers in Malawi where 50 per cent of them are involved in tea production,” he said.

Agriculture Fisheries and Food Authority interim Director General Alfred Busolo said the tea sector in Africa was producing 596 million kilos every year.

“The sector significantly contributes to socio-economic welfare as it directly sustains over 10 million people in the ten producing countries on the continent,” he said.