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Advertisement Tea Board Pushes Fresh Reforms to Strengthen Kenyas Tea IndustryThe Tea Board of Kenya has backed fresh reforms to strengthen governance, improve accountability, and secure the long-term growth of the countrys tea industry.Board officials presented their proposals to the National Assembly Departmental Committee on Agriculture and Livestock during deliberations on the Tea (Amendment) Bill, 2023. Hon. (Dr.) John Mutunga chaired the session.The discussions come as Kenyas tea sector undergoes major reforms following years of legal disputes over the Tea Act, 2020.New Levy Proposal Targets Industry GrowthLeading tea stakeholders, including the Kenya Tea Development Agency (KTDA) and the East African Tea Traders Association (EATTA), recently resolved their disputes through an out-of-court mediation process. They agreed on a new financial framework that aims to strengthen the industry.The Tea Board now proposes reducing the statutory export levy from 1 percent of auction value to 0.8 percent of bulk export value. The move seeks to lower costs while maintaining adequate funding for key industry programmes.Kenya exported 594 million kilograms of tea in 2025 and earned KSh182 billion from the shipments. Based on those figures, the revised levy would generate about KSh1.3 billion annually.Tea Board Pushes Fresh Reforms to Strengthen Kenyas Tea IndustryMore Money for Research and Market ExpansionThe new funding model removes the Tea Stabilization Fund and redirects all levy collections to four priority areas.The Tea Board will receive 40 percent of the funds to strengthen regulation and oversight. The Tea Research Foundation will receive 30 percent to support innovation, productivity, and research.Another 20 percent will finance market development and international branding initiatives for Kenyan tea. The remaining 10 percent will support infrastructure projects across tea-growing regions based on production levels.Industry players believe the revised structure will address long-standing funding gaps while improving Kenyas competitiveness in global tea markets.Focus on a Sustainable Tea SectorThe proposed reforms aim to create a stronger and more sustainable tea industry. Stakeholders want to channel more resources into research, regulation, infrastructure, and market expansion instead of maintaining the previous funding structure.The Tea Board says the amendments will strengthen the sector and deliver greater value to farmers, processors, exporters, and other players across the tea value chain.If Parliament approves the proposals, the reforms could reshape how Kenya finances and develops one of its largest foreign exchange earners while supporting the industrys long-term competitiveness.The post Tea Board Pushes Fresh Reforms appeared first on Africa Business News.

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