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The Kenya Times
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    KeNHA and KeRRA Director Generals Resign

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How Select Kenyans Benefited from Ruto’s Move to Reduce Taxes

The CS said the earnings from tea exports shot by 28% in the last five months.

by Edwin Hinda
June 17, 2024
Reading Time: 3 mins read
President William Ruto speaking in Interdenominational church service at Amutala Stadium in Kimilili, Bungoma County on June 2,2024. PHOTO/PCS.

President William Ruto speaking in Interdenominational church service at Amutala Stadium in Kimilili, Bungoma County on June 2,2024. PHOTO/PCS.

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Trade Cabinet Secretary (CS) Rebecca Miano has explained how the agriculture sector benefited from government’s decision to reduce Value Added Tax (VAT) on local tea produce.

In a statement seen by The Kenya Times, Miano said the earnings from tea exports shot by 28% in the last five months.

She stated that the government remains intentional on doubling exports and increasing local production.

“Our efforts to support the key economic sectors have seen the earnings from tea exports in the first five months of the year increased by 28 per cent compared to the same period last year,” Miano said.

The CS explained that the Kenya Kwanza government has successfully negotiated for wider markets for Kenya’s produce and championed value addition initiatives.

Trade CS Rebecca Miano speaking during the East Africa 2024 Women of Excellence Awards on June 15, 2024. PHOTO/Miano X. Taxes
Trade CS Rebecca Miano speaking during the East Africa 2024 Women of Excellence Awards on June 15, 2024. PHOTO/Miano X

“We’ve managed to remove VAT on all teas purchased from local factories for value addition to encourage our farmers to pursue value addition to their products. There lies more incentives and initiatives in the proposed Finance Bill, 2024,” she said.

Tea Board of Kenya Reveals Taxes Reduction Benefits

This comes after the Tea Board of Kenya (TBK) announced that the earnings from the sector increased from Ksh68.73 billion to Ksh88.28 billion.

“By the end of the year, we expect export earnings to rise from Sh180.57 billion last year to Sh211.27 billion. This is Sh30.70 billion more than what the industry earned in 2023,” the board said.

The Board said the average payments to small holder tea farmers also increased by Ksh9 from Ksh51 in 2023 to Ksh59.02 per kilogramme of Greenleaf.


Also Read: Uproar Over New Taxes Imposed by Govt for Select Businesses


According to the Board, farmers expect to earn a minimum of Ksh64 per kilogramme of Greenleaf by the end of the year.

The board noted that the increased yields and earnings have been as a result of several initiatives by the government.

The Board also thanked the government for the distribution of 97,974 metric tonnes of fertilizer to the tea farmers last year at a subsidized cost of Ksh2,500 per 50 kilogramme bags.


Also Read: Murkomen Schools Governor Kahiga Over Taxes & Budget Cuts


Cooperation with Other Countries

Besides, TBK said the government launched China-Kenya tea trade centre in Fujian province in China in May 2024 to facilitate distribution of Kenya tea in China.

To facilitate distribution of value-added teas, the government plans to establish warehousing facilities Ghana, DRC Congo and United Arabs Emirates (UAE).

The government also negotiated with Pakistan, the biggest market for Kenya tea, to allow for importation of Kenyan tea by the country’s traders.

 

Follow our WhatsApp Channel for real-time news updates: 

https://whatsapp.com/channel/0029VaB3k54HltYFiQ1f2i2C

President William Ruto during a cabinet meeting on June 13,2024. PHIOTO/PCS. Taxes
President William Ruto during a cabinet meeting on June 13,2024. PHIOTO/PCS

Tags: CS Rebecca MianoFinance BillRutoTaxes
Edwin Hinda

Edwin Hinda

Edwin Hinda is a versatile and creative journalist with a keen interest in politics, sports, education, international affairs, entertainment, and soft content. With a degree in Communication and Media Technology (Print Option) with IT from Maseno University, Edwin brings a well-rounded academic background to his work. He excels in conducting thorough interviews and in-depth research, ensuring that his stories are both informative and engaging. He can be reached at [email protected]

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