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September 6, 2025
3h ago

Govt Announces Removal of Taxes on Key Products

Govt Announces Removal of Taxes on Key Products

The move has been done with an aim of improving the nation's economy, and comes after complaints from key stakeholders, particularly in agriculture...

✨ Key Highlights

Kenya's Agriculture Cabinet Secretary Mutahi Kagwe has announced the removal of taxes on packaging materials for agricultural products. This move aims to attract investors, particularly in the tea sector, to package products locally for export, making Kenyan exports more competitive globally.

  • The government previously imposed a 25 per cent excise duty on packaging materials such as kraftliner and kraft paper, introduced in the 2025 Finance Bill.
  • Cabinet Secretary Mutahi Kagwe announced the tax removal at the North America Tea Conference in South Carolina on Saturday, September 6.
  • The previous tax increased the production cost of a 10kg avocado box by Ksh26 to Ksh182, and a flower box by Ksh50 to Ksh247.
  • Kenya exported tea to 96 countries in 2024, with revenues reaching Ksh181 billion, and produced 598.47 million kgs of tea in the same year.

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