KTDA Bulletin Issue Final Jan 2021

Global glut pushes down tea prices The volume of green leaf produced by smallholder tea farmers under KTDA management dropped marginally by 0.7 per cent to 615 million kgs during the last six months ending December 2020 compared to 619.5 million kgs recorded during the same period in 2019.

During the period under review, the average price per kilo of KTDA teas at the Mombasa Tea Auction dropped signi�cantly by 14 per cent to USD 2.18 from USD 2.54 recorded same period in 2019.

Despite the slight drop in production, the drop in tea prices is attributed to the high volumes of tea that continue to be delivered to the auction from the region, in addition to the global oversupply of tea.

“High volumes of tea produced in the East African region and elsewhere on the globe have contributed to the continued price decline in the global market,” KTDA Manage-ment Services Managing Director, Alfred Njagi, said.

How farmers reap from their investment in KTDA subsidiar-iesies. PG.3

Factories bene�t from less expensive Temec machinery. PG.4

How your 2nd payment (bonus) is calculated. PG.2

› continued on Page 3

ChaiBulletinKEEPING YOU UP TO DATE WITH THE LATEST NEWS FROM KTDA (HOLDINGS) LTD.

A PUBLICATION OF KTDA HOLDINGS GLOBAL LEADER IN QUALITY TEAS ISSUE 12 JANUARY - MARCH 2021

Kenya Tea Development Agency Holdings Ltd www.ktdateas.com @ktdatea

Keep Observing COVID-19 Measures,It is Still With Us

Clean your hands often with soap and water, or an alcohol-based

hand sanitizer.

Observe a safe/social distance of at least 1 metre

Cover your nose and mouthwith your bent

elbow or a tissue when you cough or sneeze.

Avoid crowded places Always wear your

mask when in public placesAvoid touching

your eyes, mouth and nose

If you have a fever, cough and difficulty breathing,

seek medical attention

Avoid close contact with someone who is sick

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How the tea trade operates: A review of the year. PG.6

How your second payment (bonus) is calculated

Dear readers, in our last edition, we gave an update on production and price for 9 months of the 2019/2020 �nancial year. In this edition, we update you on the full performance of the year. Despite the low tea prices at the market, farmers cumula-tively earned more as a result of increased

volumes. Farmers have already received their second payments.

With data from the �rst six months of the 2020/2021 �nancial year (July to December) indicating a jump in tea production, the industry is watching the direction the prices will take.

His Excellency President Uhuru Kenyatta recently assented to the Tea Act 2020. We are waiting to see the full impact of the new laws on the industry. In this edition, we have a chat with the KTDA General Manager of Sales and Marketing who explains the business environment we operate in and the factors determine the �nal pay to farmers. We also look at the services provided by KTDA Holdings’ subsidiaries,

which were established to give farmers value across the value chain.

KTDA Foundation runs a number of Corporate Social Investment programs across four pillars. We highlight these projects and the impact they have had in tea growing communities.

As the COVID pandemic continues, our managed factories continue to put in place measures to protect workers at the factory. Buying centres too continue to safeguard the farmers. We urge everyone to remain vigilant and keep to the set health protocols – sanitis-ing, wearing masks, keeping social distance and staying at home if you can.

Happy reading!Ndiga KithaeGroup Head of Corporate Affairs

EditorsKiarie Njoroge

ContributorsEgadwa MudogaDavid Mwitari Benuel Bosire

KTDA (Holding) LtdMoi Avenue - NairobiP.O. Box 30213-00100

Teas from different factories fetch varying prices at the markets – either through the auction or direct sales. This difference is driven by consumer preference with buyers willing to pay a higher price for teas from some factories due to factors such as type of soil, altitude, climate and rainfall quantity.

The buyers are willing to pay a premium on the teas from these factories (regions) hence the farmers in these areas will often receive better returns for their produce compared to others. Other factors that to a lesser extent in�uence price include quality of farm management practices such as application of fertilizer, pruning and plucking.

At the factory level, the revenues generated are broadly divided between the costs of running the factory and the growers’ payment. The farmers’ payment depends on how much the factory’s teas fetched at the market and how much of those revenues was used to run the factory in that �nancial year. Factories have multiple expenses including labour, electricity, fuel wood, leaf collection expenses, packing expenses and administra-tion costs.

Financing costsFactories with development projects that are �nanced by loans will incur higher �nance costs (loan repayment costs) than those which are not expanding. Given the current interest rates regime, such costs can be substantial. Such projects include adding extra

production lines, establishing satellite factories and setting up small hydropower stations.

On the other hand, factories with healthy cash �ows and which have no need to borrow will ultimately invest their surplus and earn more income. Farmers’ returns are also affected by how ef�cient a factory is. The cost of produc-tion varies from factory to factory based on labour and energy ef�ciencies.

Factories process varied volumes of tea depending on the size of the catchment areas and the volumes of tea produced. This deter-mines factory capacity utilisation and hence cost ef�ciency. A factory that runs at capacity or near capacity all-year round will be more ef�cient and thus will spend lesser amounts in processing a kilo of tea. An ef�cient factory will spend less in operational costs and leaves more for farmers’ pay-out. Tea prices are also very volatile based on global demand and supply. Kenya competes on the global scale with other producers like India and Sri Lanka.

An overproduction in any of the primary exporters means that the global prices fall and this affects the amount of money that buyers are willing to pay and ultimately how much the farmer will earn at the end of the year.

Curbing operational expensesAs a managing agency, KTDA is involved in ensuring factories reduce their costs of opera-tion by investing in the tea value chain via subsidiaries that either enhance services or reduce costs for farmers. KTDA has also been working with factories on various projects like energy ef�ciency that has yielded an average 15 per cent reduction for each kilo of processed tea in the last four years. The Agency is also encouraging farmers to grow other crops that will supplement their incomes in times when tea prices or income is down, as happens from time-to-time. At the same time, factories have instituted measures to manage costs in factories, key among them investment in hydropower that will considera-bly reduce the cost of energy.

ChaiBulletin

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ISSUE 12 JANUARY - MARCH 2021

Total Revenues Costs

Revenues from sale

of tea

(labour, electricity, fuel wood, leaf

collection expenses, packing expenses and administration costs)

MONTHLY PAYMENT

&2ND PAYMENT

(BONUS)

Farmer’s income

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How farmers reap from their investment in KTDA subsidiaries

is involved in power generation aimed at reducing the cost of energy for factories; Greenland Fedha which facilitates easy access to credit for farmers, and KETEPA, which is KTDA’s value addition arm that blends and packages tea for local consumption and export;

Others are Chai Trading Company Limited whose mandate is warehousing, blending, clearing and forwarding, value addition, export and general tea trading; Majani Insurance Brokers which was established to provide insurance brokerage

services for tea factories and KTDA Group companies; Tea Machinery & Engineering Company Ltd – established to provide a modern workshop for fabrication and assem-bly of tea machinery for tea factories, and KTDA Foundation which focuses on corporate social investments.

These subsidiaries operate along the tea value chain by taking advantage of economies of scale to provide critical services to factories and farmers at competitive rates. The gener-ated dividends are enjoyed by the factories and their farmers, and are re�ected in the respective books of accounts.

This is the third year in a row that prices have declined due to global supply surplus above the market demand and in line with a 2018 Food and Agriculture Organization (FAO) market forecast.

The high tea production in Kenya is majorly a result of favourable weather conditions during the period, besides the rapid expansion of acreage under tea over the years. In the last �nancial year (2019/2020), smallholder farmers under KTDA produced 1.454 billion kilograms of green leaf, up from 1.13 billion kilograms the previous year (2018/2019). This represents a 28.7% increase in production.

Data from the Kenya National Bureau of Statistics (2020) also shows that smallholder farmers across the country, including those delivering to KTDA managed factories, have been increasing acreage under tea, which

stood at 163,000 hectares (2019), up from 141,800 hectares (2018) which has contribut-ed to the increase in tea volumes on offer in the market.

‘‘The impact on tea prices of the commence-ment of the Tea Act 2020 that requires all black tea exports processed and manufac-tured in Kenya to be sold exclusively at the tea auction �oor will soon be realized” Mr. Njagi, said. He added, “We are waiting to see the full effects of the new law to the industry in the coming months.”

In 2019, the world produced 6.1 million kgs of made tea during which time consumption stood at 5.86 million kgs, spilling an excess of 290 million kgs of tea that continue to crash the markets. The increased global tea produc-

tion is responsible for the downward move-ment of prices.

“To improve tea prices for the smallholder tea farmers, the Kenyan government through the newly created Tea Board, needs to assist grow the African market for Kenyan teas by courting some of the West and North African countries such as Morocco, Nigeria and also markets in other continents that are import-ing tea from outside Africa,” Mr Njagi added.

› continued from Page 1.




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Smallholder tea farmers are set to pocket Sh734 million in dividends earned from KTDA Holdings subsidiaries for the year ending June 2020. This is an increase from the Sh649 million earned the previous year.

This is the second time the dividends will be paid out separately. The dividends have in previously years been paid as a lump sum together with the second payment (bonus).In observance of corporate governance rules, the pay slips farmers received from their respective factory companies showed the actual dividend payments accrued from the subsidiaries, separate from normal monthly payments for the delivery of tea.

KTDA Holdings- together with its six subsidi-aries and foundation- is owned by the 54 tea factory companies to whom the dividends are paid. The factory companies which are owned by farmers in turn pay out the dividends to the growers. The dividends represent the return from investment in the subsidiaries which offer specialized services across the tea value chain. The subsidiaries are crucial as they allow factories to access services at fair rates compared to commercial rates that would have been paid in their absence. They also ensure the revenues are retained in the group for the bene�t of the farmers.

The subsidiaries are; KTDA Management Services that deals with management of the tea factory companies; KTDA Power which

DIVIDENDS PAYOUT 2014 – 2020 Ksh (M)

A factory worker using the recently developed log splitter

Factories bene�t from less expensive Temec machineryFactories are set for substantial savings in factory equipment costs as Tea Machinery and Engineering Company (Temec) expands its portfolio of competitively priced and more ef�cient machinery.

The �rm, which is a subsidiary of KTDA Holdings, has been expanding its fabrication capacity and is now installing an array of equipment in factories including; dryers, tea packers, winnowers, bucket elevators, air preheaters, log splitters, conveyors, withering fans, ID fans and chimneys for boilers among others.

Eng Samuel Ng’era, General Manager Temec says that farmers will reap multiple bene�ts from the �rm’s innovations such as reduced energy costs, affordable locally manufactured machinery with round the clock maintenance support, improved machine ef�ciency as well as reduced labour costs. “Because of our unique designs and ease of running, you are able to eliminate a lot of labour which translates to savings for farmers,” he said. Among the recently introduced equipment by Temec is a 14-blade withering fan replacing the six-blade fans (imports) that have been in use in factories. The new fan draws 6 amperes of electricity compared to the older fans that draw 11 amps and shaves off an hour in withering time.

“Electricity consumption in withering is one of the biggest cost centres in factories. The only way we can reduce this is by installing ef�cient fans that wither tea within a short time and

draw minimum current,” Miano Kagema, Makomboki Tea Factory manager said. Temec has also rolled out log splitters to replace circular saws in �rewood splitting. The splitters use less power, require less manpow-er to operate, reduce wastage and are safer.

The �rm is also installing air preheaters for boilers which helps to recover waste heat from the chimneys. This increases the boiler ef�ciency by about 4 percent. Also, among its list of products are induced drafts fans whose imported cost is about Ksh. 2.3m but Temec is able to locally fabricate it at a cost of Ksh. 1m.

With home-grown solutions, Temec is

allowing factories to be more �exible by tailor-making equipment according to available space and immediate needs.

The company is constantly developing proto-types which are then produced as machinery that are suitable for local needs. The �rm is also continuously modifying its equipment to achieve maximum ef�ciency.

“We understand tea production better and can therefore produce the best tea machin-ery,” Eng. Ng’era said. The local production has also proven a boon to tea factories as they no longer have to plan for lengthy import of equipment and can also count on quick turnaround time in case of a break down.

KTDA orthodox teas production records impressive growthProduction of orthodox and specialty teas by factories managed by Kenya Tea Develop-ment Agency rose by an impressive 25 per cent in the year ended June 30 as the diversi�-cation strategy to reduce reliance on Black CTC gathers momentum.

The factories produced 2.0 million kilos of orthodox tea, up from 1.6 million kilos in the previous year (2018-19).

The increased output re�ects the ongoing investment in machinery with 10 factories having installed production lines for orthodox tea processing. Of these, 9 are processing. These are - Itumbe, Michimikuru, Kangaita, Imenti, Kiru, Thumaita, Gitugi, Kagwe and Chinga.

One more factory (Kimunye) is being commissioned and will commence processing of orthodox tea this quarter. Another factory under construction, Matunwa (Nyamira County) is also set to process orthodox tea. The roll-out is continuing and more factories will be investing in orthodox processing lines.In addition, a specialty tea factory in Kangaita is nearing completion and is expected to process Japanese-style green tea.

The growth in capacity by these expanded and new facilities will further accelerate a diversi�-cation programme by the Agency aimed at opening new markets and diversifying earnings from the current Black CTC tea whose prices have taken a dip at the Mombasa Tea Auction.

4 ChaiBulletinKEEPING YOU UP TO DATE WITH THE LATEST NEWS FROM KTDA (HOLDINGS) LTD.


A factory machine operator overseeing the black orthodox production line at Gitugi Tea Factory, one of the latest factory to diversify

to orthodox teas.


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KTDA Foundation in collaboration with Mount Kenya Trust has planted 11,000 trees at the Upper Imenti Forest, Meru County. The Upper Imenti Forest is part of the Mt Kenya forest complex which forms a key national water tower.

The tree planting activity is part of a project dubbed Empowering Rural Communities and Household with Renewable Energy (ERCHRE) being implemented by the KTDA

Foundation across KTDA’s tea-growing areas that aims to promote climate change mitiga-tion, adaptation, and resilience-building among smallholder tea farmers for sustainable tea production.

The tree seedlings have been donated by Githongo and Rukuriri Tea Factories, which are managed by KTDA.

“This tree planting exercise forms part of our

vision to plant 2.6 million trees across tea growing areas. We are committed to ensuring improved ecological conditions for tea growing for improved livelihoods for our farmers,” KTDA Foundation Manager, Sudi Matara said. KTDA Foundation has in the last �ve years also been engaged in a fruit tree growing campaign involving secondary schools, with the aim of inculcating a culture of tree growing among the youth.




KTDA Foundation, Mount Kenya Trust in tree planting partnership

Diplomatic tour

About 15, 000 tea farmers spread across 12 KTDA-managed tea factory catchment areas are set to bene�t from medical camps to be held beginning November, 2020. The three-day camps, organised by KTDA Foundation in partnership with Taylors of Harrogate, will be conducted in selected public government health canters alongside a

number of selected schools.

The medical camps are targeting tea farmers who are above the age of 60 years in Kapka-tet, Iriaini, Igembe, Motigo, Thumaita, Nduti, Kapsara, Tombe, Ndarugu, Gatunguru, Kathangariri, Kiamokama tea factories. These members of the community are classi�ed to be the most vulnerable to non-communicable

diseases (NCDs) and other health issues related to the elderly, thus, they need more care. KTDA Foundation alongside its partners has so far undertaken 36 medical camps since the program was incepted and it has so bene�tted over 30,000 tea farmers who have received treatment and health services that include testing, treatment and promotion talks that focus on preventive strategies

15,000 farmers to bene�t from free medical camps

Iran ambassador to Kenya Dr. Jafar Barmaki (left) samples various tea grades when he visited Rorok Tea Factory. Beside him is Bomet governor Dr Hilary Barchok. Kenya and Iran are working to improve trade ties with tea seen as a key export commodity to the Middle East country.

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How the tea trade operates: A review of the year

Please summarise for us how the small-holder sector under KTDA operates.KTDA is a managing agent for 69 tea factories that are owned by 615,000 farmers spread across 16 counties in Kenya. These farmers own shares in their factory companies and deliver tea to the factory for processing. As a managing agent, KTDA manages the value chain on behalf of farmers, and this includes processing, marketing and selling the tea; handling logistics, transport of the tea, as well as facilitating payment to farmers. This is done seamlessly to ensure farmers are paid their dues on time for the delivery of their tea.

How much tea did the farmers produce and sell in the last �nancial year? In the year ended June 2020, we had the highest ever supply of green leaf by farmers of 1.45 billion kilos. This was processed to make 327 million kilos of made tea because ordinar-ily four-and-a-half kilos of green leaf delivered by farmers are processed to make one kilo of made tea which is sold in the market. Out of that 327 million kilos, we were able to sell about 86 per cent of that in the global market. 97 per cent of the small scale tea farmers’ tea is exported to a number of countries like Pakistan, UK, Egypt, UAE, Sudan among others.

How did increased global production affect price of tea at the markets?Tea is a global business and Kenya competes with teas from other producing countries.

Globally, we have over 60 countries produc-ing tea but the key countries that determine the �ow of the market are largely Kenya, China, India and Sri Lanka. When you look at the production situation in these countries from 2018, we’ve had very good harvests in these countries, resulting in a surplus of over 200 million kilos as of July 2019.

So when you put the record crop that we received in the year, it means that prices were de�nitely going to drop because we are supplying much more than what the market can consume. The COVID-19 pandemic emerged, it complicated an already challenging business environment.

Talking about the pandemic. How did it affect business?The pandemic affected global supply chains. It became harder to move tea around the world, which impacted business. However, with the designation of tea as an essential food item, factories continued to process tea, which was moved seamlessly to the warehouses and sold at the auction in Mombasa. All this took place under tight safety protocols as set out by the Kenya government on how to manage the pandemic.

Considering the numbers put forth despite the bumper harvest, how did this impact the payment farmers receive for the year ended June 2020.The good thing is that this is a volume-based business. So, though the price came down by 8 per cent, we were able to sell more tea than the previous year generating a revenue growth of 14 per cent.

Quality is a big determinant of the �nal pay that farmers get. There’s also the cost of production. How is KTDA helping factories to ensure that produc-tion is at its best?Over the years there have been a lot of investments in managing the costs; one of it being mechanisation. Previously, at a factory you’d have so many staff- as many as 300- running the operations of the factory. But because of mechanisation, these numbers have come down signi�cantly. Secondly we have also invested a lot in ICT, to try and automate some of the functions that were being done manually before. Thirdly is the investments along the value chain in terms of warehousing, power generation, and local machinery fabrication. And of course the key

among the activities that will ensure the farmer gets the best return is investment in quality management. When you look at the factory expansions, the factories are expand-ed to ensure the tea is processed as fresh as possible. The longer the tea stays in the �eld, the quality deteriorates very fast. So that investment in factory expansion – all that has gone in ensuring tea arrives in the factory in good quality, processed and marketed in good quality.

Kenya’s tea has some good qualities to compete in the international level. Are there plans to diversify into other types of teas?Right now, we have been largely servicing Black CTC tea segment of the global tea market. Globally there are three main types of teas; black CTC, black orthodox and green tea. We have been largely on black CTC which means it’s restricting us to a few markets. But in the recent past, we have also gone into the black orthodox market. This is a market that is largely dominated by Sri Lanka.

Already, we have 10 factories that are producing over two million kilos of orthodox tea. Through that, we are able to open new markets; the likes of Germany, Iran, Russia, USA and Canada. These are markets that we would not have penetrated if we had not invested in diversifying our teas. Of course, in the near future we see ourselves producing green tea and already there is a project in Kangaita (Kirinyaga County) where there is construction of the �rst green tea factory in this region which is going to be producing this type of tea which is popular in Japan.

What is the way forward for the small-holder tea farmer?The future of the industry is assured. Tea is the second most consumed drink globally after water. The key challenge is how we make sure tea stays relevant in the minds and lifestyle of a young person because that is the future market. If you look at the established markets, like the UK, black CTC tea consumption is going down, but consumption of green tea and other specialty teas is going up. The same is replicated across the world. And competition is getting stronger by the day. We have competition from carbonated drinks, we have more competition from water itself, more competition from coffee, other beverages and even competition of resources.



John Bett

Sales and Marketing General Manager

KTDA managed factories recently released second payments to farmers. We sat down with Mr John Bett, the General Manager, Sales and Marketing, for a recap of the �nancial year 2019/20 in terms of markets.


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Pictorial

Ketepa Limited Human Resource head Judy Kinyanjui and MD Albert Otochi (R) present a dummy cheque for Sh2 million to Julius Mary, the winner of the Zawadika na Fahari ya Kenya campaign. It

marks 40 years of Ketepa’s operations.

KTDA Foundation on 12th November, 2020 donated 11,000 assorted indigenous trees and participated in a tree planting activity in Upper Imenti Forest in Kithoka. The tree planting project

was a partnership between KTDA Foundation Rainforest Alliance and Mount Kenya trust.

KTDA Foundation in partnership with Ethical Tea Partnership donated14 dignity kits to vulnerable girls in Makomboki Tea Factory catchment; and 15 dignity kits to Vulnerable girls in Kabiangek

Primary School, Boito Tea Factory catchment. Each kit contained sanitary towels, panties, soap, tissue paper, a comb, toothpaste and a toothbrush, a towel, a torch, a pair of sandals and a leso. The

sanitary towels are expected to sustain the girls for seven months.

KTDA Holdings Board and Management, led by the Chairman, Peter Kanyago, during a visit to the Chai Logistics Centre in Nairobi on Wednesday, 28th October, 2020. The logistics centre will serve as a transit point of teas from KTDA managed factories to be moved via SGR to Mombasa for export.

KTDA MS Managing Director, Alfred Njagi (left) and KTDA Foundation Manager, Sudi Matara (right) receive part of a donation of protective masks from the Nyambura Magochi, the Ethical Tea Partnership (ETP) Africa Manager at the KTDA Head Of�ce. ETP donated a total of 36,500

protective masks to be distributed to farmers across nine KTDA-managed factories to help curb the spread of the coronavirus. This is in addition to efforts that KTDA-managed factories have put in

place to help manage the pandemic, including encouraging farmers to wear masks, provision of hand washing facilities at buying centres and observing social distance at the centres.

KTDA team led by Francis Miano, GM Technical Services (3rd from right), with the trophy won by Kapsara Tea Factory during the Energy Management Awards held on Friday, 30th October 2020. Kapsara won the 1st Runners Up-Best Energy Management Tea sector. The prize is awarded to

factories that showcase their best energy savings initiatives.

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7%0%4%4%2%3%3%2%2%3%2%2%

Labour

Furnace Oil

Electricity

Fuelwood

Leaf Collection

packing expenses

Admin costs FF

Admin costs HO

Admin costs Mgt Fees

Depreciation

63.53

83.9778.31

85.74

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COUNTY / FACTORIES IN COUNTY

NUMBER OF GROWERS

AREA UNDER TEA (HA)

MADE TEA PRODUCED (‘000’ KGS)

JUNE 2020

NET REVENUE (KSHS MILLIONS)

JUNE 2020

TOTAL PAYMENT TO GROWERS

(KSHS MILLIONS)JUNE 2020

TOTAL PAYMENT TO GROWERS

(KSHS MILLIONS)JUNE 2019

1. BOMET COUNTYKAPKOROS/TIRGAGA/ OLENGURUONE*/MOTIGO 39,595 8,589 24,183 5,313 3,228 2,953KAPSET/ROROK 14,449 4,283 9,135 1,885 1,105 1,053MOGOGOSIEK/KOBEL/BOITO 30,255 6,714 16,311 3,435 2,085 2,147SUB-TOTAL 84,299 19,586 49,630 10,633 6,418 6,1532. EMBU COUNTYKATHANGARIRI 8,458 1,122 3,889 1,091 789 677MUNGANIA 9,628 1,723 5,734 1,553 1,121 962RUKURIRI 10,159 1,639 5,530 1,506 1,097 1,070SUB-TOTAL 28,245 4,484 15,153 4,150 3,006 2,7093. KERICHO COUNTYKAPKATET/TEBESONIK 20,863 4,023 9,027 1,932 1,163 915LITEIN/CHELAL 18,324 3,776 9,375 1,950 1,191 949MOMUL 17,053 2,369 7,188 1,801 1,288 1,016TEGAT/TOROR 21,718 6,510 10,108 2,118 1,299 944SUB-TOTAL 77,958 16,678 35,698 7,801 4,941 3,8244. KIAMBU COUNTYGACHEGE 4,766 1,202 4,139 988 679 597KAGWE 6,890 2,004 6,387 1,650 1,153 988KAMBAA 4,812 1,615 4,843 1,278 861 674MATAARA 4,305 1,746 4,548 1,126 785 591THETA/NDARUGU 8,609 2,428 8,446 2,096 1,442 1,126SUB-TOTAL 29,382 8,994 28,363 7,138 4,920 3,9765. KIRINYAGA COUNTYKANGAITA 7,101 1,332 4,857 1,336 919 916KIMUNYE 9,189 1,524 6,255 1,736 1,231 975MUNUNGA 9,711 1,751 6,158 1,715 1,176 1,056NDIMA 8,913 1,360 5,120 1,354 953 869THUMAITA 11,102 1,440 5,893 1,564 1,119 921SUB-TOTAL 46,016 7,406 28,284 7,706 5,398 4,7376. KISII COUNTYKIAMOKAMA/RIANYAMWAMU 21,595 2,682 5,132 1,073 596 562NYAMACHE/ITUMBE 26,196 3,639 6,182 1,332 759 727OGEMBO/EBEREGE 23,377 3,330 5,304 1,105 623 563SUB-TOTAL 71,168 9,651 16,618 3,510 1,978 1,8527. MERU COUNTYGITHONGO 5,121 1,026 4,273 1,206 848 848IMENTI 6,071 1,587 5,622 1,604 1,129 1,165KIEGOI/IGEMBE 10,899 1,936 6,113 1,542 1,062 885KINORO 9,344 2,016 5,871 1,551 1,104 1,092KIONYO 9,797 2,327 5,366 1,417 970 1,020MICHIMIKURU 10,125 2,269 4,916 1,114 671 907SUB-TOTAL 51,357 11,162 32,160 8,435 5,785 5,9178. MURANG’A COUNTYGACHARAGE 5,518 1,233 4,287 1,195 830 718GATUNGURU 8,240 1,567 5,068 1,298 874 790GITHAMBO 9,749 1,908 5,251 1,352 905 759IKUMBI 7,135 1,519 5,411 1,420 1,004 875KANYENYAINI 9,366 1,693 4,870 1,227 767 759KIRU 7,710 1,599 5,325 1,376 877 816MAKOMBOKI 6,565 2,196 6,838 1,844 1,311 1,173NDUTI 5,973 1,208 4,305 1,084 741 651NGERE 8,540 2,642 8,374 2,209 1,613 1,409NJUNU 4,511 1,201 4,741 1,222 874 689SUB-TOTAL 73,307 16,767 54,471 14,227 9,795 8,6389. NANDI COUNTYCHEBUT/KAPTUMO 12,781 7,619 8,493 1,771 1,111 1,123SUB-TOTAL 12,781 7,619 8,493 1,771 1,111 1,12310. NYAMIRA COUNTYGIANCHORE 14,481 1,809 3,521 761 442 432KEBIRIGO 15,475 1,954 3,877 850 487 421NYANKOBA 17,820 1,919 3,955 881 531 436NYANSIONGO 13,597 2,780 5,957 1,275 826 609SANGANYI 17,964 3,030 4,919 1,069 651 519TOMBE 22,108 2,842 4,009 844 472 473SUB-TOTAL 101,445 14,334 26,239 5,679 3,409 2,88911. NYERI COUNTYCHINGA 7,494 1,538 4,589 1,205 764 706GATHUTHI 8,185 1,473 4,224 1,179 748 644GITUGI 5,979 1,049 3,542 1,006 658 532IRIAINI 6,442 1,118 3,873 993 627 557RAGATI 7,551 1,394 4,431 1,135 740 649SUB-TOTAL 35,651 6,572 20,660 5,518 3,537 3,08912. THARAKA NITHI COUNTYWERU 9,918 1,664 5,086 1,234 881 894SUB-TOTAL 9,918 1,664 5,086 1,234 881 89413. TRANS NZOIA COUNTYKAPSARA 2,074 709 2,256 465 241 171SUB-TOTAL 2,074 709 2,256 465 241 17114.VIHIGA / KAKAMEGA COUNTIESMUDETE 11,767 1,794 3,614 754 430 502SUB-TOTAL 11,767 1,794 3,614 754 430 502GRAND TOTAL 635,368 127,421 326,724 79,021 51,851 46,475

* OLENGURUONE IS IN NAKURU COUNTY

KENYA TEA EXPORT MARKETS – % SHARE

4.4% 5.5%

10.1% 19.3%

34.6%

3.9% 3.2%

2.4%

14.9%

Kazakhstan

SudanUAE

UKEgypt

Pakistan

RussiaYemen

1.7% AfghanistanOthers

0 5 10 15 20 25 30 35 40

TOTAL INCOME IN BILLION KSH - 6 YEARS

TOTAL PAYMENT IN BILLION KSH - 6 YEARS

43.25

61.9157.44

62.35

0

10

20

30

40

50

60

70

Billi

ons

Kshs

2015 2016 2017 2018 2019

46.48

2020

51.85

0

200

400

600

800

1,000

1,200

1,400

1,600

Milli

on K

gs

1,039

1,233

977

1,180

2015 2016 2017 2018

1,130

2019

1,454

2020

2015 2016 2017 2018 2019 2020

2.60

2.16

3.01

2.51

3.13

2.692.88

2.59

2.082.38

1.87

3.14

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

KTDA Average Prices Other Local Producers Average Prices

Tea

Pric

es in

USD

GREEN LEAF PRODUCTION (M) KGS - 6 YEARS

AVERAGE SELLING PRICE IN USD PER KG - 6 YEARS TREND

AVERAGE % OF NET INCOME PAID OUT TO THE GROWERJUNE 2020

In the last 6 years total cummulative payments to the farmers is Ksh 323.24 Billion.

66%Green LeafPayment

Factory Costs

TEA GROWERS PAYMENT JUNE 2020 FINANCIAL YEAR

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Documents

KTDA Bulletin Issue Final Jan 2021