Farmers plan to boycott tea picking over new tax

A woman plucking tea at a plantation in Nandi Hills. Farmers’ representatives want more factories built in tea producing areas to process herbal tea for export. PHOTO | JARED NYATAYA |

What you need to know:

  • The more than 40,000 small-scale tea farmers who issued the threat currently sell their produce to Kenya Tea Development Agency factories, Nyayo Tea Zone Factory and multinational companies.
  • Sireet Tea Company Director Joseph Manjoy said tea yields in the county had dropped, with farmers failing to pay workers, service loans and buy inputs. He warned that the majority would ditch tea farming due to new taxes.

Farmers have threatened to boycott tea picking in protest over a new tax on farm produce.

They want the Nandi County 2014 Finance Bill withdrawn, saying it spells doom to those involved in tea, coffee and dairy farming.

If implemented, the farmers will see one shilling deducted for each kilogramme of tea they sell.

The more than 40,000 small-scale tea farmers who issued the threat currently sell their produce to Kenya Tea Development Agency factories, Nyayo Tea Zone Factory and multinational companies.

At a highly-charged meeting on Saturday, the tea farmers and leaders from the region denounced the Bill, which was prepared and introduced by County Executive for Finance Charles Kimuge.

The leaders included MPs Alfred Keter (Nandi Hills) and Cornelius Serem (Aldai), Woman Representative Zipporah Kering and Senator Stephen Sang.

DOUBLE TAXATION
Tempers flared during the meeting, which was also attended by Governor Cleophas Lagat, Deputy Governor Dominic Biwott and Mr Kimuge, with farmers complaining that they already pay cess to the Tea Board of Kenya.

“We are not ready to pay tax twice. We will boycott tea picking and paralyse the tea industry if our grievances are not addressed,” said Mr Joel Metto, one of the farmers.

Sireet Tea Company Director Joseph Manjoy said tea yields in the county had dropped, with farmers failing to pay workers, service loans and buy inputs. He warned that the majority would ditch tea farming due to new taxes.

MP Keter said the draft law would lead to the collapse of the tea sector. He called on Mr Lagat not to sign the Bill into law, noting that if implemented, it would see dairy farmers pay Sh700 a year for keeping a cow.

Those keeping a goat, sheep and a dog would pay Sh300 a year. Maize farmers would also pay Sh40 for every 90kg bag sold.