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KTDA wants locally consumed tea exempted from tax

30 October 2013, 11:52 Joseph Mukubwa

Nairobi - Kenya Tea Development Agency (KTDA) has urged both the national and County governments not to over tax the locally consumed tea.

KTDA chairman, Peter Kanyago, said all taxes of locally consumed tea should instead be exempted in order to encourage more Kenyans to consume tea.

He also called upon the government to give tea farmers subsidized fertilizers just like other farmers who grow food crops.

“I would also like the government to help KTDA look for more markets of our product even if it will mean government to government negotiations,” he added.

He also encouraged Kenyans to consume more tea since only 10 per cent of Kenyan tea is consumed locally while the rest 90 per cent is exported.

Kanyago also adds that the KTDA is ready to work with the County government to ensure that farmers benefit through the value addition process.

At the same time, Kanyago has cautioned tea farmers against misusing the tea payments commonly known as tea bonuses which was released at the end of last week.

He said he was happy that many farmers have been educated on how to plan for their money.

Kanyago was speaking on Monday at zone IV offices in Othaya, Nyeri County, immediately after he was elected unopposed as a KTDA member.

He however said the sector is facing many challenges including the fluctuation of prices in the Mombasa auction.

Others challenges affecting the tea sector includes the high energy costs, labour cost and high cost of farm inputs like fertilizer.

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