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{
    "id": 779777,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/779777/?format=api",
    "text_counter": 225,
    "type": "speech",
    "speaker_name": "Sen. Lelegwe",
    "speaker_title": "",
    "speaker": {
        "id": 13222,
        "legal_name": "Steve Ltumbesi Lelegwe",
        "slug": "steve-ltumbesi-lelegwe"
    },
    "content": "Mr. Speaker, Sir, the response to the Statement has already been provided to Sen. Cheruiyot. I will go ahead and give highlights of specific information sought by the Senator. The first question was on whether the Government is aware that tea is among the leading export earners in Kenya. The Government is aware that tea is ranked No.2 in terms of export earnings for the country. In 2017, the export earnings amounted to Kshs129.3 billion as compared to Kshs120.7 billion in 2016, thus registering a seven per cent increase from the previous year. The country exported 415.7 million kilograms of tea in 2017 as compared to 480.3 million kilograms in 2016, thus making tea one of the leading export products in both volume and value. Tea contributes about 14 per cent of the agricultural Gross Domestic Product (GDP) and about four per cent of Kenya’s GDP thus underscoring the importance of the sector to the economy. Mr. Speaker, Sir, we have provided two tables which list the taxes by the Kenya Revenue Authority (KRA) and other bodies in the sector. The Cabinet Secretary (CS) has also provided a table on other levies and charges along the tea value chain. I will not go through the tables because the Senator already possesses this response. The second question was on why the Mombasa County Government has introduced a tax of Kshs22 per package of tea being exported through the Mombasa Port. The Mombasa County Government imposed a Kshs22 levy on every package of tea entering Mombasa in 2014 but was suspended in 2015 following a court case filed by the tea traders. However, on 15th November, 2017, the court ruled in favor of the County thereby allowing it to collect cess on trucks carrying tea and other goods destined for sale in Mombasa County. Due to the negative impact of the levy on the competitiveness of Kenya’s tea abroad, traders through their umbrella body, the East African Tea Traders Association (EATTA) lobbied for its removal. In a meeting held between traders and the County Executive Committee (CEC) on 24th January, 2018, the Mombasa County Government agreed that tea destined for export will not be levied the Agricultural Produce Cess (APC). Therefore, only tea packages destined for local consumption would be levied cess. In order to distinguish the teas for local consumption and export, it was agreed that EATTA regularly updates the Mombasa County Government with a list of trucks ferrying tea destined for export. Mr. Speaker, Sir, I have just given a summary of the response which has been signed by Hon. Mwangi Kiunjuri, EGH, MP, CS. Thank you. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}