This archive report was first published on 24 November 2019.
Published on November 24, 2019, a top tea packer in Kenya has spoken out about the challenges facing the industry. According to the Kenya Tea Packers (Ketepa) managing director, Albert Otochi, high taxes and poor marketing are making Kenyan tea uncompetitive in the world market.
The firm claims that the high cost of making packaging material locally, particularly a 25 percent duty, is making Kenya's tea one of the most expensive in the world. This, combined with poor marketing, has led to a decline in the industry's competitiveness.
Kenya is the world's biggest tea exporter, accounting for 26 percent of total exports, with about 95 percent of the total production being shipped out. Last year, tea injected Sh140 billion into the Kenyan economy, making it one of the largest exchange earners.
However, Ketepa says that punitive taxation, particularly Value Added Tax on providers of packaging paper, and lack of industry support have remained a stumbling block to value addition in Kenya. The firm has invested in adding flavours as part of value addition to attract consumers.
Mr Otochi believes that if some of the issues are reviewed, the growth of the sector is certainly set to take off. Kenya normally exports in bulk, creating much-needed jobs abroad instead of locally.
