Tea farmers from various tea-growing zones have called on their legislators to drop the 0.8pc levy on earnings as proposed in the Tea Bill.
While speaking in Kiambu County, Kagwe Tea Factory chairman William Muroki Githumbi urged Members of Parliament to drop the proposed levy, saying tea farmers were never involved through public participation, making the move unconstitutional and against the will of the people.
Githumbi warned that if the bill currently in Second Reading if passed, will open doors for tea brokers dealing in low-quality tea to exploit the market by blending it with quality tea bought from local farmers in an attempt to cut costs, a move he said will eventually hurt genuine tea producers.
He further called on legislators from tea-growing regions to stand with farmers and protect the tea sector from what he termed as excessive taxation.
According to the chairman, taxes and deductions imposed on tea farmers have continued to rise, currently standing at nearly 42pc. He also revealed that county governments have issued letters demanding a 0.5pc levy on all tea produce from factories, further burdening the sector.
At the same time, Githumbi expressed concern over the Kenya Revenue Authority’s move to collect farmers’ personal details for purposes of enforcing a monthly five percent tax, saying the sector was increasingly becoming overtaxed and disadvantaged.
He urged the government to involve tea stakeholders in policy formulation and decision-making processes to allow consultations and consensus before implementing policies affecting farmers.
The chairman also decried the poor state of roads within tea-growing zones, saying factories are forced to spend huge amounts of money repairing trucks damaged by dilapidated roads.
