Tea value chain players call for electricity rebates

kenya power kplc

Stakeholders in the tea value chain are calling on the government to offer electricity rebates to reduce the cost of tea production as part of incentives to revive the subsector.

They argue that the high cost of energy remains a hurdle especially among small holder farmers.

The government’s electricity rebate programme was designed to significantly reduce the expenses on electricity by companies involved in manufacturing both large and small, by deducting the tax on a percentage of their electricity bills.

It was done through the amendment of section 15 of the Income Tax Act in 2018, which ultimately provides that 30% of electricity costs incurred by manufacturers will not be subjected to tax.

Those in the tea value chain say electricity incentives will go a long way in reducing the cost of production since energy accounts for between 30 and 50 percent of the overall cost of tea processing.

Going forward, they want inclusivity in the policy making process so as to safeguard tea farmers interests.

  

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