Tea Board suspends 0.8% tea levy after Machakos court order

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The Tea Board of Kenya (TBK) has suspended collection of the 0.8% levy on tea exports and imports after the High Court in Machakos issued orders stopping its enforcement. In a notice dated October 27, the board told KRA to stop collecting the levy under the Tea (Levy) Regulations, 2026, with immediate effect, Kenyan Wall Street reports.

What the court ordered

Justice Josephine Mongare issued interim conservatory orders on a petition by the Mazingira Greens Party of Kenya. The orders also bar authorities from denying traders export or import permits only because they have not paid the levy. The case comes up for mention on November 19.

Why the tea levy was challenged

The 0.8% levy was meant to fund the government’s Common Marketing Development Fund, which Agriculture CS Mutahi Kagwe announced to promote Kenyan tea at home and abroad. The petitioner argues:

• Exporters could pass the cost to small-scale farmers through lower payments.
• Using the money for roads would put an unfair burden on local producers compared with multinational tea firms.
• Tea farmers were not consulted enough when the regulations were made.

The government says the levy funds international marketing and helps steady prices in key export markets. The interim order does not settle those arguments or decide whether the regulations are constitutional.

What tea traders should do now

TBK has told traders to keep meeting all other export and import rules, including licensing, registration, quality standards and customs procedures. For duty questions on other imports, see our guide to KRA customs duty rates.

FAQ

Is the 0.8% tea levy still being collected?

No. The Tea Board has suspended collection pending further court directions.

When will the court hear the tea levy case again?

It is scheduled for mention on November 19, 2026.

Can traders be denied export permits for not paying the levy?

No. The court order bars authorities from denying permits only on that ground.