The High Court has suspended the contentious tea levy following a petition that challenged its implementation, offering temporary relief to industry players who have opposed the charges.
The conservatory orders issued by Justice Josephine Mongare at the Machakos High Court restrain the Tea Board of Kenya (TBK) from collecting or enforcing the levy on tea exports and imports pending further directions.
The petition was filed by Mazingira Party of Kenya chairman John Bunei who acted on behalf of small-scale tea farmers. He argued the levy would ultimately hurt growers by reducing their earnings.
“The continued demand for the levy allegedly diminishes the proceeds accruing to small-scale tea farmers and subjects them to continuing financial prejudice,” the petitioner argued.
TBK has since announced the immediate suspension of the demand and collection of the levy in compliance with the court order.
In a notice to tea buyers, exporters and importers, TBK chief executive Willy Mutai said the suspension will remain in force pending further communication from the board, subject to any additional court directions.
The board has also requested the Kenya Revenue Authority (KRA) to suspend collection of the levy on tea exports and imports.
Justice Mongare certified the petitioner’s application dated October 19 as urgent and directed the respondents to file their submissions within seven days of service.
The matter will be mentioned on November 19, 2026, for further directions.
The petition names TBK, Agriculture Cabinet Secretary Mutahi Kagwe and the Attorney General Dorcas Oduor as respondents, with the Kenya Tea Development Agency (KTDA) listed as an interested party.
The petitioner challenges the Tea (Levy) Regulations, 2026, introduced by TBK on May 1, which impose a charge of Sh2.28 per kilogramme of tea or 0.8 per cent of the auction value or customs value of tea sold through direct transactions.
The petition argues that although the levy is imposed at the export level on buyers and exporters, the costs could ultimately be transferred to farmers through lower farm-gate prices and reduced annual bonuses.
Tea importers are also subject to a levy based on the import value of each consignment, a measure intended to discourage the dumping of low-quality tea into the Kenyan market.
The suit also questions the adequacy of public participation during the amendment of the Tea Act and the formulation of the regulations, arguing that small-scale growers were excluded from meaningful consultations.
The petitioner also challenged the proposed allocation of part of the levy towards road infrastructure, arguing that the framework could place a disproportionate financial burden on local producers without ensuring multinational tea companies contribute their fair share.
Under the regulations, 50 per cent of the proceeds are allocated to the Tea Price Stabilisation Fund, 20 per cent to the Tea Research Institute, 15 per cent to support the Tea Board’s operations and the remaining 15 per cent to tea-growing counties for infrastructure development.
TBK has previously defended the levy, maintaining that it is necessary to strengthen the tea value chain, improve competitiveness and support the long-term sustainability of the sector.
“The tea sector remains one of Kenya’s most strategic agricultural value chains. It supports millions of livelihoods, earns the country significant foreign exchange and contributes immensely to rural economic development,” Mutai said in a statement.
According to the board, the funds were to support the rehabilitation of tea access roads, the development of collection centres and other infrastructure projects intended to improve transportation and market access for growers.
Mutai maintained the regulations would promote accountability and fairness in the tea industry while strengthening Kenya’s position in the global market.
However, since its enforcement in May, the levy has faced growing opposition from farmers, factory directors and other industry players, who fear the additional costs had weakened their earnings amid rising production expenses.
The High Court intervention follows a series of meetings held by KTDA Holding leadership across the Mt Kenya region, where farmers and tea sector representatives urged the government to suspend the levy and consider amendments to the regulations.
Factory directors have also raised concerns over declining tea prices at the Mombasa auction, claiming that buyers have offered lower prices, forcing factories to sell their produce below the levels they would ordinarily expect.
The directors argue the levy has compounded the pressure on tea earnings, with growers likely to bear the consequences through reduced payments.
