Planned increases on tea taxes discouraging Kenyan farmers

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In Kenya, tea has been the leading major foreign exchange earner.

Tea growers in the east African nation say taxes and high costs of labour and fertilisers are hurting earnings and will discourage an increase in production.

Producers of Kenya’s No. 1 export earner are up in arms about a 1 percent levy on tea sold at a weekly auction and a 16 percent value added tax on tea processed and consumed locally.

Kathyrn Ogunde with more on that story.