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Tea Factories Takes Government to Court Over โ€œIllegalโ€ Levies (Details)

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Tea Factories Takes Government to Court Over โ€œIllegalโ€ Levies (Details)

 

A fresh legal battle is brewing in Kenya’s tea sector after nine tea factories moved to the High Court to challenge new levies introduced by the Tea Board of Kenya (TBK). The factories accuse the government of imposing unlawful taxes that could further strain the country’s multi-billion-shilling tea industry. The case was filed before High Court Judge Roselyn Aburili.

The petitioners include Imenti, Kinoro, Keigoi, Ikumbi, Mununga, Kiamokama, Tebesonik, Kapkatet and Gionchore tea factories. They have jointly sued Agriculture Cabinet Secretary Mutahi Kagwe, the Tea Board of Kenya and the Attorney General. 

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According to court documents, the factories argue that the newly introduced levies were imposed without proper public participation and legal procedures as required by the Constitution. They claim the charges are unfair and could increase operational costs at a time when tea producers are already grappling with rising expenses, fluctuating global prices and high production costs.

The factories further argue that the levies could reduce farmers’ earnings, affecting thousands of small-scale tea growers who depend on tea as their primary source of income. Kenya remains one of the world’s leading tea exporters, with the crop contributing significantly to foreign exchange earnings and rural livelihoods. 

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Industry players fear the dispute could create uncertainty in the sector if not resolved quickly. Some stakeholders say additional taxes may discourage investment and weaken the competitiveness of Kenyan tea in the international market.

The government, however, is expected to defend the levies, arguing that the funds are necessary for regulation, quality control and development of the tea industry. The case is likely to attract close attention from farmers, exporters and investors as the court determines whether the levies are lawful or an added burden to an already struggling sector.