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A PUBLICATION OF KTDA HOLDINGS GLOBAL LEADER IN QUALITY TEAS ISSUE 12 JANUARY - MARCH 2021 Global glut pushes down tea prices

The volume of green leaf produced by Despite the slight drop in production, the smallholder tea farmers under KTDA drop in tea prices is attributed to the high management dropped marginally by 0.7 per volumes of tea that continue to be delivered cent to 615 million kgs during the last six to the auction from the region, in addition to months ending December 2020 compared to the global oversupply of tea. 619.5 million kgs recorded during the same period in 2019. “High volumes of tea produced in the East African region and elsewhere on the globe During the period under review, the average have contributed to the continued price price per kilo of KTDA teas at the decline in the global market,” KTDA Manage- Tea Auction dropped signi cantly by 14 per ment Services Managing Director, Alfred cent to USD 2.18 from USD 2.54 recorded Njagi, said. › continued on Page 3 same period in 2019. Keep Observing COVID-19 Measures, It is Still With Us

Clean your hands often Cover your nose and mouth Avoid close contact with with soap and water, Observe a safe/social with your bent someone who is sick or an alcohol-based distance of at least 1 metre elbow or a tissue when you hand sanitizer. cough or sneeze.

If you have a fever, cough and difficulty breathing, Avoid touching Always wear your Avoid crowded places seek medical attention your eyes, mouth mask when in public places and nose

How your How farmers Factories bene t How the tea trade 800

700 691 683 734 2nd payment 600 reap from their from less operates: A review 532 514 500 382 400 (bonus) is 300 272 investment in expensive Temec of the year. 200

100

0 calculated. 2014 2015 2016 2017 2018 2019 2020 KTDA subsidiar- machinery. PG.6 PG.2 iesies. PG.3 PG.4

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volumes. Farmers have already received their which were established to give farmers value second payments. across the value chain.

With data from the rst six months of the KTDA Foundation runs a number of 2020/2021 nancial year (July to December) Corporate Social Investment programs indicating a jump in tea production, the across four pillars. We highlight these Editors industry is watching the direction the prices projects and the impact they have had in tea Kiarie Njoroge Dear readers, in our last will take. growing communities. edition, we gave an Contributors update on production His Excellency President Uhuru Kenyatta As the COVID pandemic continues, our Egadwa Mudoga and price for 9 months recently assented to the Tea Act 2020. We managed factories continue to put in place David Mwitari of the 2019/2020 are waiting to see the full impact of the new measures to protect workers at the factory. Benuel Bosire nancial year. In this laws on the industry. Buying centres too continue to safeguard the KTDA (Holding) Ltd edition, we update you farmers. We urge everyone to remain vigilant Moi Avenue - on the full performance In this edition, we have a chat with the KTDA and keep to the set health protocols – sanitis- P.O. Box 30213-00100 of the year. Despite the General Manager of Sales and Marketing who ing, wearing masks, keeping social distance low tea prices at the explains the business environment we and staying at home if you can. market, farmers cumula- operate in and the factors determine the nal tively earned more as a pay to farmers. We also look at the services Happy reading! result of increased provided by KTDA Holdings’ subsidiaries, Ndiga Kithae Group Head of Corporate Affairs How your second payment (bonus) is calculated

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 (labour, electricity, MONTHLY willing to pay a higher price for teas from Revenues fuel wood, leaf PAYMENT some factories due to factors such as type of from sale collection expenses, & soil, altitude, climate and rainfall quantity. of tea packing expenses and 2ND PAYMENT administration costs) (BONUS) The buyers are willing to pay a premium on the teas from these factories (regions) hence Total Revenues Costs Farmer’s income the farmers in these areas will often receive better returns for their produce compared to others. Other factors that to a lesser extent production lines, establishing satellite An overproduction in any of the primary inuence price include quality of farm factories and setting up small hydropower exporters means that the global prices fall and management practices such as application of stations. this affects the amount of money that buyers fertilizer, pruning and plucking. are willing to pay and ultimately how much the On the other hand, factories with healthy cash farmer will earn at the end of the year. At the factory level, the revenues generated ows and which have no need to borrow will are broadly divided between the costs of ultimately invest their surplus and earn more Curbing operational expenses running the factory and the growers’ income. Farmers’ returns are also affected by As a managing agency, KTDA is involved in payment. The farmers’ payment depends on how ef cient a factory is. The cost of produc- ensuring factories reduce their costs of opera- how much the factory’s teas fetched at the tion varies from factory to factory based on tion by investing in the tea value chain via market and how much of those revenues was labour and energy ef ciencies. subsidiaries that either enhance services or used to run the factory in that nancial year. reduce costs for farmers. KTDA has also been Factories have multiple expenses including Factories process varied volumes of tea working with factories on various projects labour, electricity, fuel wood, leaf collection depending on the size of the catchment areas like energy ef ciency that has yielded an expenses, packing expenses and administra- and the volumes of tea produced. This deter- average 15 per cent reduction for each kilo of tion costs. mines factory capacity utilisation and hence processed tea in the last four years. The cost ef ciency. A factory that runs at capacity Agency is also encouraging farmers to grow Financing costs or near capacity all-year round will be more other crops that will supplement their Factories with development projects that are ef cient and thus will spend lesser amounts in incomes in times when tea prices or income is nanced by loans will incur higher nance processing a kilo of tea. An ef cient factory down, as happens from time-to-time. At the costs (loan repayment costs) than those will spend less in operational costs and leaves same time, factories have instituted measures which are not expanding. Given the current more for farmers’ pay-out. Tea prices are also to manage costs in factories, key among them interest rates regime, such costs can be very volatile based on global demand and investment in hydropower that will considera- substantial. Such projects include adding extra supply. competes on the global scale bly reduce the cost of energy. with other producers like India and Sri Lanka.

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ISSUE 12 JANUARY - MARCH 2021

› continued from Page 1.

This is the third year in a row that prices have stood at 163,000 hectares (2019), up from declined due to global supply surplus above 141,800 hectares (2018) which has contribut- the market demand and in line with a 2018 ed to the increase in tea volumes on offer in Food and Agriculture Organization (FAO) the market. market forecast. ‘‘The impact on tea prices of the commence- The high tea production in Kenya is majorly a ment of the Tea Act 2020 that requires all result of favourable weather conditions black tea exports processed and manufac- during the period, besides the rapid expansion tured in Kenya to be sold exclusively at the of acreage under tea over the years. In the last tea auction oor will soon be realized” Mr. nancial year (2019/2020), smallholder Njagi, said. tion is responsible for the downward move- farmers under KTDA produced 1.454 billion ment of prices. kilograms of green leaf, up from 1.13 billion He added, “We are waiting to see the full kilograms the previous year (2018/2019). This effects of the new law to the industry in the “To improve tea prices for the smallholder represents a 28.7% increase in production. coming months.” tea farmers, the Kenyan government through the newly created Tea Board, needs to assist Data from the Kenya National Bureau of In 2019, the world produced 6.1 million kgs of grow the African market for Kenyan teas by Statistics (2020) also shows that smallholder made tea during which time consumption courting some of the West and North African farmers across the country, including those stood at 5.86 million kgs, spilling an excess of countries such as Morocco, Nigeria and also delivering to KTDA managed factories, have 290 million kgs of tea that continue to crash markets in other continents that are import- been increasing acreage under tea, which the markets. The increased global tea produc- ing tea from outside Africa,” Mr Njagi added.

How farmers reap from their investment in KTDA subsidiaries

Smallholder tea farmers are set to pocket Sh734 million in dividends earned from KTDA DIVIDENDS PAYOUT 2014 – 2020 Ksh (M) Holdings subsidiaries for the year ending June 2020. This is an increase from the Sh649 800 million earned the previous year. 700 691 683 734 This is the second time the dividends will be 600 paid out separately. The dividends have in 532 514 previously years been paid as a lump sum 500 together with the second payment (bonus). 382 In observance of corporate governance rules, 400 the pay slips farmers received from their respective factory companies showed the 300 272 actual dividend payments accrued from the subsidiaries, separate from normal monthly 200 payments for the delivery of tea. 100 KTDA Holdings- together with its six subsidi- 0 aries and foundation- is owned by the 54 tea 2014 2015 2016 2017 2018 2019 2020 factory companies to whom the dividends are paid. The factory companies which are owned is involved in power generation aimed at services for tea factories and KTDA Group by farmers in turn pay out the dividends to reducing the cost of energy for factories; companies; Tea Machinery & Engineering the growers. The dividends represent the Greenland Fedha which facilitates easy Company Ltd – established to provide a return from investment in the subsidiaries access to credit for farmers, and KETEPA, modern workshop for fabrication and assem- which offer specialized services across the tea which is KTDA’s value addition arm that bly of tea machinery for tea factories, and value chain. The subsidiaries are crucial as blends and packages tea for local consumption KTDA Foundation which focuses on they allow factories to access services at fair and export; corporate social investments. rates compared to commercial rates that would have been paid in their absence. They Others are Chai Trading Company These subsidiaries operate along the tea value also ensure the revenues are retained in the Limited whose mandate is warehousing, chain by taking advantage of economies of group for the bene t of the farmers. blending, clearing and forwarding, value scale to provide critical services to factories addition, export and general tea trading; and farmers at competitive rates. The gener- The subsidiaries are; KTDA Management Majani Insurance Brokers which was ated dividends are enjoyed by the factories Services that deals with management of the established to provide insurance brokerage and their farmers, and are reected in the tea factory companies; KTDA Power which respective books of accounts.

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ISSUE 12 JANUARY - MARCH 2021 Factories bene t from less expensive Temec machinery Factories 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 A factory worker using the recently developed log splitter machinery with round the clock maintenance support, improved machine ef ciency as well draw minimum current,” Miano Kagema, allowing factories to be more exible by as reduced labour costs. “Because of our Makomboki Tea Factory manager said. Temec tailor-making equipment according to unique designs and ease of running, you are has also rolled out log splitters to replace available space and immediate needs. able to eliminate a lot of labour which circular saws in rewood splitting. The translates to savings for farmers,” he said. splitters use less power, require less manpow- The company is constantly developing proto- Among the recently introduced equipment by er to operate, reduce wastage and are safer. types which are then produced as machinery Temec is a 14-blade withering fan replacing that are suitable for local needs. The rm is the six-blade fans (imports) that have been in The rm is also installing air preheaters for also continuously modifying its equipment to use in factories. The new fan draws 6 amperes boilers which helps to recover waste heat achieve maximum ef ciency. of electricity compared to the older fans that from the chimneys. This increases the boiler draw 11 amps and shaves off an hour in ef ciency by about 4 percent. Also, among its “We understand tea production better and withering time. list of products are induced drafts fans whose can therefore produce the best tea machin- imported cost is about Ksh. 2.3m but Temec ery,” Eng. Ng’era said. The local production “Electricity consumption in withering is one of is able to locally fabricate it at a cost of has also proven a boon to tea factories as they the biggest cost centres in factories. The only Ksh. 1m. no longer have to plan for lengthy import of way we can reduce this is by installing ef cient equipment and can also count on quick fans that wither tea within a short time and With home-grown solutions, Temec is turnaround time in case of a break down.

KTDA orthodox teas production records impressive growth

Production of orthodox and specialty teas by One more factory (Kimunye) is being factories managed by Kenya Tea Develop- commissioned and will commence processing ment Agency rose by an impressive 25 per of orthodox tea this quarter. Another factory cent in the year ended June 30 as the diversi - under construction, Matunwa ( cation strategy to reduce reliance on Black County) is also set to process orthodox tea. CTC gathers momentum. The roll-out is continuing and more factories will be investing in orthodox processing lines. The factories produced 2.0 million kilos of In addition, a specialty tea factory in Kangaita orthodox tea, up from 1.6 million kilos in the is nearing completion and is expected to previous year (2018-19). process Japanese-style green tea.

The increased output reects the ongoing The growth in capacity by these expanded and investment in machinery with 10 factories new facilities will further accelerate a diversi - A factory machine operator overseeing the having installed production lines for orthodox cation programme by the Agency aimed at black orthodox production line at Gitugi Tea tea processing. Of these, 9 are processing. opening new markets and diversifying earnings Factory, one of the latest factory to diversify These are - Itumbe, Michimikuru, Kangaita, from the current Black CTC tea whose prices to orthodox teas. Imenti, Kiru, Thumaita, Gitugi, Kagwe and have taken a dip at the Mombasa Tea Auction. Chinga.

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ISSUE 12 JANUARY - MARCH 2021 Diplomatic tour

Iran ambassador to Kenya Dr. Jafar Barmaki (left) samples various tea grades when he visited Rorok Tea Factory. Beside him is 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.

KTDA Foundation, Trust in tree planting partnership KTDA Foundation in collaboration with Foundation across KTDA’s tea-growing areas vision to plant 2.6 million trees across tea Mount Kenya Trust has planted 11,000 trees that aims to promote climate change mitiga- growing areas. We are committed to ensuring at the Upper Imenti Forest, . tion, adaptation, and resilience-building among improved ecological conditions for tea The Upper Imenti Forest is part of the Mt smallholder tea farmers for sustainable tea growing for improved livelihoods for our Kenya forest complex which forms a key production. farmers,” KTDA Foundation Manager, Sudi national water tower. Matara said. KTDA Foundation has in the last The tree seedlings have been donated by ve years also been engaged in a fruit tree The tree planting activity is part of a project Githongo and Rukuriri Tea Factories, which growing campaign involving secondary dubbed Empowering Rural Communities and are managed by KTDA. schools, with the aim of inculcating a culture Household with Renewable Energy of tree growing among the youth. (ERCHRE) being implemented by the KTDA “This tree planting exercise forms part of our 15,000 farmers to bene t from free medical camps About 15, 000 tea farmers spread across 12 number of selected schools. diseases (NCDs) and other health issues KTDA-managed tea factory catchment areas related to the elderly, thus, they need more are set to bene t from medical camps to be The medical camps are targeting tea farmers care. KTDA Foundation alongside its partners held beginning November, 2020. who are above the age of 60 years in Kapka- has so far undertaken 36 medical camps since tet, Iriaini, Igembe, Motigo, Thumaita, Nduti, the program was incepted and it has so The three-day camps, organised by KTDA Kapsara, Tombe, Ndarugu, Gatunguru, bene tted over 30,000 tea farmers who have Foundation in partnership with Taylors of Kathangariri, Kiamokama tea factories. These received treatment and health services that Harrogate, will be conducted in selected members of the community are classi ed to include testing, treatment and promotion public government health canters alongside a be the most vulnerable to non-communicable talks that focus on preventive strategies

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ISSUE 12 JANUARY - MARCH 2021 How the tea trade operates: A review of the year

Globally, we have over 60 countries produc- among the activities that will ensure the ing tea but the key countries that determine farmer gets the best return is investment in the ow of the market are largely Kenya, quality management. When you look at the China, India and Sri Lanka. When you look at factory expansions, the factories are expand- the production situation in these countries ed to ensure the tea is processed as fresh as from 2018, we’ve had very good harvests in possible. The longer the tea stays in the eld, John Bett these countries, resulting in a surplus of over the quality deteriorates very fast. So that 200 million kilos as of July 2019. investment in factory expansion – all that has gone in ensuring tea arrives in the factory in Sales and Marketing So when you put the record crop that we good quality, processed and marketed in good General Manager received in the year, it means that prices were quality. de nitely going to drop because we are supplying much more than what the market Kenya’s tea has some good qualities to KTDA managed factories can consume. The COVID-19 pandemic compete in the international level. Are recently released second emerged, it complicated an already challenging there plans to diversify into other types payments to farmers. We sat business environment. of teas? Right now, we have been largely servicing down with Mr John Bett, the Talking about the pandemic. How did it Black CTC tea segment of the global tea General Manager, Sales and affect business? market. Globally there are three main types of Marketing, for a recap of the The pandemic affected global supply chains. It teas; black CTC, black orthodox and green nancial year 2019/20 in terms became harder to move tea around the world, tea. We have been largely on black CTC of markets. which impacted business. However, with the which means it’s restricting us to a few designation of tea as an essential food item, markets. But in the recent past, we have also Please summarise for us how the small- factories continued to process tea, which was gone into the black orthodox market. This is holder sector under KTDA operates. moved seamlessly to the warehouses and sold a market that is largely dominated by Sri KTDA is a managing agent for 69 tea factories at the auction in Mombasa. All this took place Lanka. that are owned by 615,000 farmers spread under tight safety protocols as set out by the across 16 counties in Kenya. These farmers Kenya government on how to manage the Already, we have 10 factories that are own shares in their factory companies and pandemic. producing over two million kilos of orthodox deliver tea to the factory for processing. As a tea. Through that, we are able to open new managing agent, KTDA manages the value Considering the numbers put forth markets; the likes of Germany, Iran, Russia, chain on behalf of farmers, and this includes despite the bumper harvest, how did USA and Canada. These are markets that we processing, marketing and selling the tea; this impact the payment farmers would not have penetrated if we had not handling logistics, transport of the tea, as well receive for the year ended June 2020. invested in diversifying our teas. Of course, in as facilitating payment to farmers. This is done The good thing is that this is a volume-based the near future we see ourselves producing seamlessly to ensure farmers are paid their business. So, though the price came down by green tea and already there is a project in dues on time for the delivery of their tea. 8 per cent, we were able to sell more tea than Kangaita () where there is the previous year generating a revenue construction of the rst green tea factory in How much tea did the farmers produce growth of 14 per cent. this region which is going to be producing this and sell in the last nancial year? type of tea which is popular in Japan. In the year ended June 2020, we had the Quality is a big determinant of the nal highest ever supply of green leaf by farmers of pay that farmers get. There’s also the What is the way forward for the small- 1.45 billion kilos. This was processed to make cost of production. How is KTDA holder tea farmer? 327 million kilos of made tea because ordinar- helping factories to ensure that produc- The future of the industry is assured. Tea is ily four-and-a-half kilos of green leaf delivered tion is at its best? the second most consumed drink globally by farmers are processed to make one kilo of Over the years there have been a lot of after water. The key challenge is how we made tea which is sold in the market. Out of investments in managing the costs; one of it make sure tea stays relevant in the minds and that 327 million kilos, we were able to sell being mechanisation. Previously, at a factory lifestyle of a young person because that is the about 86 per cent of that in the global market. you’d have so many staff- as many as 300- future market. If you look at the established 97 per cent of the small scale tea farmers’ tea running the operations of the factory. But markets, like the UK, black CTC tea is exported to a number of countries like because of mechanisation, these numbers consumption is going down, but consumption Pakistan, UK, Egypt, UAE, Sudan among have come down signi cantly. Secondly we of green tea and other specialty teas is going others. have also invested a lot in ICT, to try and up. The same is replicated across the world. automate some of the functions that were And competition is getting stronger by the How did increased global production being done manually before. Thirdly is the day. We have competition from carbonated affect price of tea at the markets? investments along the value chain in terms of drinks, we have more competition from water Tea is a global business and Kenya competes warehousing, power generation, and local itself, more competition from coffee, other with teas from other producing countries. machinery fabrication. And of course the key beverages and even competition of resources.

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ISSUE 12 JANUARY - MARCH 2021 Pictorial

Ketepa Limited Human Resource head Judy Kinyanjui and MD Albert Otochi (R) present a dummy KTDA Foundation on 12th November, 2020 donated 11,000 assorted indigenous trees and cheque for Sh2 million to Julius Mary, the winner of the Zawadika na Fahari ya Kenya campaign. It participated in a tree planting activity in Upper Imenti Forest in Kithoka. The tree planting project marks 40 years of Ketepa’s operations. 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 KTDA Holdings Board and Management, led by the Chairman, Peter Kanyago, during a visit to the girls in Makomboki Tea Factory catchment; and 15 dignity kits to Vulnerable girls in Kabiangek Chai Logistics Centre in Nairobi on Wednesday, 28th October, 2020. The logistics centre will serve as Primary School, Boito Tea Factory catchment. Each kit contained sanitary towels, panties, soap, tissue a transit point of teas from KTDA managed factories to be moved via SGR to Mombasa for export. 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 team led by Francis Miano, GM Technical Services (3rd from right), with the trophy won by KTDA MS Managing Director, Alfred Njagi (left) and KTDA Foundation Manager, Sudi Matara (right) Kapsara Tea Factory during the Energy Management Awards held on Friday, 30th October 2020. receive part of a donation of protective masks from the Nyambura Magochi, the Ethical Tea Kapsara won the 1st Runners Up-Best Energy Management Tea sector. The prize is awarded to Partnership (ETP) Africa Manager at the KTDA Head Of ce. ETP donated a total of 36,500 factories that showcase their best energy savings initiatives. 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.

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ISSUE 12 JANUARY - MARCH 2021

TEA GROWERS PAYMENT JUNE 2020 FINANCIAL YEAR

COUNTY / NUMBER OF AREA UNDER MADE TEA NET REVENUE TOTAL PAYMENT TOTAL PAYMENT GREEN LEAF PRODUCTION (M) KGS - 6 YEARS FACTORIES IN COUNTY GROWERS TEA (HA) PRODUCED (‘000’ KGS) (KSHS MILLIONS) TO GROWERS TO GROWERS 1,600 JUNE 2020 JUNE 2020 (KSHS MILLIONS) (KSHS MILLIONS) 1,454 JUNE 2020 JUNE 2019 1,400 1. 1,233 1,200 1,180 1,130 KAPKOROS/TIRGAGA/ OLENGURUONE*/MOTIGO 39,595 8,589 24,183 5,313 3,228 2,953 1,039 KAPSET/ROROK 14,449 4,283 9,135 1,885 1,105 1,053 1,000 977 MOGOGOSIEK/KOBEL/BOITO 30,255 6,714 16,311 3,435 2,085 2,147

s 800 SUB-TOTAL 84,299 19,586 49,630 10,633 6,418 6,153 g K 2. 600 llion

KATHANGARIRI 8,458 1,122 3,889 1,091 789 677 M i 400 MUNGANIA 9,628 1,723 5,734 1,553 1,121 962 RUKURIRI 10,159 1,639 5,530 1,506 1,097 1,070 200

SUB-TOTAL 28,245 4,484 15,153 4,150 3,006 2,709 0 3. COUNTY 2015 2016 2017 2018 2019 2020 KAPKATET/TEBESONIK 20,863 4,023 9,027 1,932 1,163 915 LITEIN/CHELAL 18,324 3,776 9,375 1,950 1,191 949 AVERAGE SELLING PRICE IN USD PER KG MOMUL 17,053 2,369 7,188 1,801 1,288 1,016 - 6 YEARS TREND TEGAT/TOROR 21,718 6,510 10,108 2,118 1,299 944 3.50 3.13 3.14 SUB-TOTAL 77,958 16,678 35,698 7,801 4,941 3,824 3.01 2.88 4. COUNTY 3.00 2.69 2.60 2.51 2.59 2.38 GACHEGE 4,766 1,202 4,139 988 679 597 2.50 2.16 2.08 KAGWE 6,890 2,004 6,387 1,650 1,153 988 1.87 2.00 KAMBAA 4,812 1,615 4,843 1,278 861 674 MATAARA 4,305 1,746 4,548 1,126 785 591 1.50

THETA/NDARUGU 8,609 2,428 8,446 2,096 1,442 1,126 ea Prices in USD 1.00 T SUB-TOTAL 29,382 8,994 28,363 7,138 4,920 3,976 0.50 5. KIRINYAGA COUNTY 0.00 KANGAITA 7,101 1,332 4,857 1,336 919 916 2015 2016 2017 2018 2019 2020 KIMUNYE 9,189 1,524 6,255 1,736 1,231 975 KTDA Average Prices Other Local Producers Average Prices MUNUNGA 9,711 1,751 6,158 1,715 1,176 1,056 NDIMA 8,913 1,360 5,120 1,354 953 869 THUMAITA 11,102 1,440 5,893 1,564 1,119 921 TOTAL INCOME IN BILLION KSH - 6 YEARS 90 SUB-TOTAL 46,016 7,406 28,284 7,706 5,398 4,737 85.74 83.97 79.02 6. 80 78.31 69.77 KIAMOKAMA/RIANYAMWAMU 21,595 2,682 5,132 1,073 596 562 70 NYAMACHE/ITUMBE 26,196 3,639 6,182 1,332 759 727 63.53 60

OGEMBO/EBEREGE 23,377 3,330 5,304 1,105 623 563 s 50

SUB-TOTAL 71,168 9,651 16,618 3,510 1,978 1,852 Ks h

7. MERU COUNTY 40

GITHONGO 5,121 1,026 4,273 1,206 848 848 illion s 30 B IMENTI 6,071 1,587 5,622 1,604 1,129 1,165 20 KIEGOI/IGEMBE 10,899 1,936 6,113 1,542 1,062 885 10 KINORO 9,344 2,016 5,871 1,551 1,104 1,092 KIONYO 9,797 2,327 5,366 1,417 970 1,020 0 MICHIMIKURU 10,125 2,269 4,916 1,114 671 907 2015 2016 2017 2018 2019 2020 SUB-TOTAL 51,357 11,162 32,160 8,435 5,785 5,917 TOTAL PAYMENT IN BILLION KSH - 6 YEARS 8. MURANG’A COUNTY 70 61.91 62.35 GACHARAGE 5,518 1,233 4,287 1,195 830 718 60 57.44 GATUNGURU 8,240 1,567 5,068 1,298 874 790 51.85 50 GITHAMBO 9,749 1,908 5,251 1,352 905 759 46.48

s 43.25

IKUMBI 7,135 1,519 5,411 1,420 1,004 875 h 40 s K

KANYENYAINI 9,366 1,693 4,870 1,227 767 759 s KIRU 7,710 1,599 5,325 1,376 877 816 30 illio n

MAKOMBOKI 6,565 2,196 6,838 1,844 1,311 1,173 B 20 NDUTI 5,973 1,208 4,305 1,084 741 651 NGERE 8,540 2,642 8,374 2,209 1,613 1,409 10 NJUNU 4,511 1,201 4,741 1,222 874 689 0 SUB-TOTAL 73,307 16,767 54,471 14,227 9,795 8,638 2015 2016 2017 2018 2019 2020 9. In the last 6 years total cummulative payments to the CHEBUT/KAPTUMO 12,781 7,619 8,493 1,771 1,111 1,123 farmers is Ksh 323.24 Billion. SUB-TOTAL 12,781 7,619 8,493 1,771 1,111 1,123 10. AVERAGE % OF NET INCOME PAID OUT TO THE GROWER GIANCHORE 14,481 1,809 3,521 761 442 432 JUNE 2020 KEBIRIGO 15,475 1,954 3,877 850 487 421 NYANKOBA 17,820 1,919 3,955 881 531 436 2% Factory Costs NYANSIONGO 13,597 2,780 5,957 1,275 826 609 2% Labour SANGANYI 17,964 3,030 4,919 1,069 651 519 3% Furnace Oil 2% TOMBE 22,108 2,842 4,009 844 472 473 Electricity 2% 66% Fuelwood SUB-TOTAL 101,445 14,334 26,239 5,679 3,409 2,889 3% Green Leaf Leaf Collection 11. COUNTY 3% Payment packing expenses CHINGA 7,494 1,538 4,589 1,205 764 706 2% Admin costs FF 8,185 1,473 4,224 1,179 748 644 4% Admin costs HO 4% GITUGI 5,979 1,049 3,542 1,006 658 532 Admin costs Mgt Fees 0% IRIAINI 6,442 1,118 3,873 993 627 557 Depreciation RAGATI 7,551 1,394 4,431 1,135 740 649 7% SUB-TOTAL 35,651 6,572 20,660 5,518 3,537 3,089 12. THARAKA NITHI COUNTY KENYA TEA EXPORT MARKETS – % SHARE WERU 9,918 1,664 5,086 1,234 881 894 Pakistan 34.6% SUB-TOTAL 9,918 1,664 5,086 1,234 881 894 Egypt 19.3% 13. TRANS NZOIA COUNTY UK 10.1% KAPSARA 2,074 709 2,256 465 241 171 UAE 5.5% SUB-TOTAL 2,074 709 2,256 465 241 171 Sudan 4.4% 14. / COUNTIES Russia 3.9% MUDETE 11,767 1,794 3,614 754 430 502 Yemen 3.2% Kazakhstan SUB-TOTAL 11,767 1,794 3,614 754 430 502 2.4% Afghanistan 1.7% GRAND TOTAL 635,368 127,421 326,724 79,021 51,851 46,475 Others 14.9% * OLENGURUONE IS IN COUNTY 0 5 10 15 20 25 30 35 40

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