New player enters Kenya tea processing sector

Nyayo Tea Zones Development Corporation is set to go into tea processing, competing with the three established players who dominant the Kenyan industry.

The parastatal is constructing Sh481 million($7 million) factory at Kipchapo in Nandi North that is expected to become operational before the end of 2008. Agriculture minister Kipruto arap Kirwa said tea processing is expected to generate Sh200 million ($3 million) in revenue for the corporation annually, as well as create 100 direct jobs.

Besides, Nandi residents are expected to benefit from electrification as well as construction of roads. By going into processing, Nyayo also hopes to reduce its pre-harvest and post-harvest losses that have been rising due to congestion in Kenya Tea Development Agency-managed factories.

The factory will have an installed capacity of processing seven million kilograms of green leaf annually upon completion, and expand to a capacity of 12 million kilogrammes by 2012 and 18 million by 2020. It will process C.T.C teas, orthodox, green teas as well as offer value addition services.

East African Development Bank is financing 60 per cent of the project while Nyayo Tea Zones fund the remaining 40 per cent.

Kirwa also announced that plans were underway to build a second Nyayo Tea Zones factory in Kirinyaga. The new momentum is part of the growth programme set by the managing director of the corporation, Anne Kinyua.

Last year Nyayo Tea Zones got Sh3.5 million ($52,000) from the African Development Bank to finance the Green Zones Development Support project, a conservation initiative to plant trees, increase tea production and improve rural access roads.

Established in 1986, the corporation's mandate includes protection of gazetted forests through establishment of continuous rings of tea and fuelwood plantations between the forests and communities neighbouring them. It does so through managing tea and wood plantations in at least 17 zones throughout the country.

Business Day