KTDA Boss Blasts Tea Tax Plan: “Don’t Punish the Farmer!”
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By John Kariuki
KTDA Group CEO Wilson Muthaura has come out strongly against the proposed 1% levy on tea sales, warning it would be a direct blow to Kenya’s smallholder farmers.
Speaking in response to the Tea (Amendment) Bill, 2023, Muthaura called on lawmakers to scrap the tax proposal entirely, arguing that tea growers are already burdened by high costs and over-taxation.
“Our smallholder farmers are the lifeblood of this industry. Adding more levies will only hurt their earnings and morale,” he said, backing earlier remarks by KTDA National Chairman SC Chege Kirundi.
Kenya’s tea sector, which supports over 650,000 small-scale farmers and millions more across the value chain, remains a key foreign exchange earner. Muthaura cautioned that the proposed levy would reduce farmers’ profits and erode Kenya’s competitive edge in global markets.
“If this levy is passed, we risk scaring off investors and frustrating the very people who fuel this industry. It’s a step backwards,” he warned.
Muthaura urged Parliament to engage directly with stakeholders before introducing policies that could sabotage the sector. He emphasized KTDA’s commitment to improving farmer incomes through sound management, innovation, and sustainability—not taxation.
“Policy must uplift the farmer, not punish them. Let’s safeguard livelihoods and Kenya’s global reputation for quality tea,” he concluded.
The bold statement is likely to intensify pressure on lawmakers as the debate over the controversial tea tax continues.
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