Kenya to focus on adding value to its tea
Kenya's tea industry is looking for ways to improve the recognition and value of its products. The main concern is that the vast majority of Kenya's tea is currently exported in bulk - it is then blended with other teas and sold under foreign brands, thereby losing its identity. The industry is suggesting to encourage a more favorable tax environment for packaging equipment and material imports (which are currently taxed by 25%) and to scrap VAT for tea producers. The goal is to attract companies who manufacture tea in packets, tea bags, instant tea and other forms inside the country. As an example, experts cite Sri Lanka, which has earned 76% more from its exports in 2009 despite lower output.