kangaita tea factory - kenya tea development agency · pdf filemr. j. o. michoma - regional...

Kangaita Tea Factory

50 Years Of Tea Experience

Home Of Specialty Teas

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Festus K. Kaburi - Factory Unit ManagerWinston M. Njeru - Production ManagerSamuel W. Kariuki - Field Services Co-ordinatorDaniel Macharia - Factory AccountantEric Kimathi N. - Production AssistantEliud G. Njogu - Assistant Factory AccountantDavid G. Njoroge - Field Systems AdministratorPaul M. Nuthu - Production Assistant

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Mr. David Wachira Githinji - ChairmanMr. Peter Wachira Ndinwa - Vice ChairmanMr. Peter Mwai Migwi - DirectorMs. Rhodah Wanjira Kinyua - DirectorMr. Thomas Murithi Ndambiri - DirectorMr. Peter Mwai Njeru - DirectorMr. Nicasios Mwai Muriithi - DirectorMr. Jeffithah Nyaga Karua - KTDA Board MemberMr. J. O. Michoma - Regional Manager

BOARD OF DIRECTORS

MANAGEMENT

KTDA BOARD MEMBERS

Gloabal Leader in Quality Teas

DIRECTORSP. T. Kanyago MBS, EBS - Zone 4/ChairmanP. Ngetich OGW,MBS - Zone 8/Vice ChairmanEng. J. M. Wakimani - Zone 1Eng. E. Gakuya - Zone 2G. C. Kirundi HSC - Zone 3 Retired 4th December 2014F. M. Mark - Zone 3 Appointed 4th December 2014J. N. Karua - Zone 5S. M. Ireri - Zone 6P. M. Ringera, HSC - Zone 7S. C. Tonui - Zone 9J. Achoki - Zone 10B. O. Matonda - Zone 11J. M. Mukavale - Zone 12I . Gaha (Ms) - Independent DirectorL. S. Tiampati, MBS - Managing DirectorB. K. Ngari - Finance & Strategy Director

E-mail: [email protected] | Web: www.ktdateas.com

Tea was introduced in this area in 1959 and only one factory was operational i.e. Ragati, approximately 25 kms away in the neighbouring Nyeri county. Kangaita is the second oldest in the country. The factory was built in 1965, with the foundation stone laid by Hon. Bruce McKenzie, D.S.O. D.F.O. MP. then minister for agriculture on 14th January 1965. Hon. T.J. Mboya, the then minister for economic planning and development, commissioned it on 22nd February 1966. The factory was then processing tea from as far as part of Meru and Muranga.

Kenya Tea Development Authority (which became Kenya Tea Development Agency Ltd after privatisation in 2000), took over management of the Factory from George Williamson Ltd in 1977.

The Factory is located on the southern slopes of Mount Kenya, neighbouring Mount Kenya forest. The snow caped peak of Mt Kenya is clearly visible from many areas within the factory catchment. Mt Kenya photo at Gitaraga. It's on a relatively high altitude of 2036M above sea level approximately ½° S of the equator and approximately along the 37.3°E longitude. It's situated between Rundu and Mukengeria rivers which serve the Ndia community. The Factory receives clean unpolluted water tapped from Mukengeria River.

OUR HISTORY

GEOGRAPHICAL LOCATION

Tom Mboya addressing guestsduring the commissioning ofKangaita Factory in 1966



The Factory is in Kerugoya-Kutus constituency of Kirinyaga County. It is only 12Kms to the north of Kerugoya town and 142 Kms from the capital city, Nairobi, on an all – weather tarmac road.

ADMINISTRATIVE LOCATION

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Kangaita tea factory is one of the 66 Factories managed by Kenya Tea Development Agency [MS] Ltd. KTDA [MS] offers all management services to the small scale tea factories.

These includes tea extension services, green leaf collection, tea manufacture, Sales & marketing, finance, legal, engineering, human resource and general administration. In KTDA administration, the factory is in KTDA region III which covers Kirinyaga

and Embu Counties. There are five factories in Kirinyaga county and three in Embu county.

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Kangaita Tea Factory serves 6594 small scale tea growers with a combined acreage of 1077 hectares currently under tea. Farmers deliver their green leaf in 28 tea collection centres from where the

factory organizes for collection and delivery to the factory The tea farmers who have registered with the factory are the shareholders of

the factory company. The farmers elect the factory company directors. The directors formulate policy issues for managing the factory

FARMERS AND GOVERNANCE

MANAGEMENT

CERTIFICATIONS

The factory has the following international certifications:ISO 9001: 2008 for Quality Management SystemISO 22000:2005 for Food Safety Management SystemRainforest Alliance (RA) for Sustainable AgricultureFair Trade (*Awareness done awaiting Audit)

The factory also complies with all local legal and regulatory requirements applicable in the tea industry.

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The Factory has capacity to receive and process 24 million Kilograms green leaf annually.

Production figures for last 50 years:-

PRODUCTION, NO. OF GROWERS AND HECTARES PLATED

FINANCIAL YEAR

GL PRODUCTION IN KGS

1965-1970

9,000,000.00

1971-1975 28,900,000.00

1976-1980 14,810,000.00

1981-1985

10,170,000.00

1986-1990

18,800,000.00

1991-1995

24,230,000.00

1996-2000

31,270,000.00

2001-2005 49,732,824.00

2006-2010 62,354,355.00

2011-2015 80,004,709.50

GL PRODUCTION IN RANGE OF 5 YEARS FOR 50 YEARS

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10,000,000.00

20,000,000.00

30,000,000.00

40,000,000.00

50,000,000.00

60,000,000.00

70,000,000.00

80,000,000.00

90,000,000.00

1965-

1970

1971-

1975

1976-

1980

1981-

1985

1986-

1990

1991-

1995

1996-

2000

2001-

2005

2006-

2010

2011-

2015

YEARS

GL

INK

GS

GL IN KGS



NO. OF GROWERS FROM YEAR 1997 - 2015

FINANCIAL YEAR NO. OF GROWERS

1997 3023

1998

3118

1999 3555

2000

3784

2001

3879

2002

3901

2003

4710

2004

4773

2005 4827

2006 5058

2007 5251

2008 5673

2009 5856

2010 6152

2011 6390

2012 6381

2013 6495

2014 6537

2015 6641

NO. OF GROWERS

0

1000

2000

3000

4000

5000

6000

7000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

YEARS

GR

OW

ER

S

NO. OF GROWERS



FINANCIAL YEAR HECTARES PLANTED

1997 803.83

1998 822.3

1999 838.7

2000 867.12

2001 873.34

2002 875.94

2003 887.98

2004 893.39

2005 898.69

2006 927.93

2007 959.43

2008 965.46

2009 979.00

2010 985.12

2011 988.52

2012 995.58

2013 998.62

2014 1002.47

2015 1076.65

HECTARES PLANTED

HECTARES PLANTED

0

200

400

600

800

1000

1200

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

YEARS

HE

CTA

RE

S

HECTARES



CTC TEAS

ORTHODOX TEAS SPECIALTY TEAS

BLACK TEAS

BP1

PF1

PD

D1

F1

DUST

BLACK TEAS

FOP

P

OP

BOPF

OF

WHITE SILVERY TIP

WHITE PREMIUM

MACHINE ROLLED PREMIUM

HAND ROLLED PREMIUM

OOLONG

PURPLE

PURPLE/BLACK MIX

GREEN TEAS

BP

BP1

PF1

PD

DUST

GREEN TEAS

BOP1

BOP

FP

F1

D1

TEA GRADES MANUFACTURED AT KANGAITA TEA FACTORY

The Kangaita tea landscape



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The CTC made tea is mostly sold through the Mombasa Tea Auction in bulk to various destinations in the world such as UK, Parkistan, Egypt, Afghanistan, Yemen, etc.Some tea is also bought by local tea parkers and blenders such as KETEPA.The factory also sells to the tea farmers and local community through factory door sales.The factory has a separate production line for orthodox teas and other specialty teas, which have been the only one in all KTDA managed factories. These teas are sold as direct sales. The destination markets are Russia, Germany, UK, Poland, USA, Canada , Iran and Japan.

MARKETING

CHALLENGES

MITIGATION MEASURES

The main challenges faced by the business includes:- High production cost especially Electricity, Fuel, Labour and farm inputs.Unpredictable markets resulting to low prices affecting farmers' earnings.Fluctuating exchange rates.Small farm sizes due to land subdivision leading to reduced earnings per house hold.Impact of Climate change resulting to unpredictable weather.

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Wood fuel project-the company procuring its own land to develop wood fuel plantations. Power company-in partnership with other factories in Kirinyaga, a power company was established to put up small hydro power project.Automation in productionProduct diversification and Tea Value Adding. Introduction of orthodox line of production is part of this strategy.Sustainable agriculture practices for sustainability of tea production. The Farmers Field School methodology is in line with this.



An FFS Class in progress

CORPORATE SOCIAL RESPONSIBILITIES

ENVIRONMENT

EDUCATION

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Every year the factory organizes for tree planting where indigenous trees are planted. Seedlings are also given free of charge to the community during that activity.The factory also has a tree nursery and sells the seedlings at highly subsidized rate to the community.The factory organizes for collection and disposal of solid non-biodegradable waste from the households.

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Through KTDA Foundation scholarship scheme, one best performing student in KCPE from a less privileged family receives scholarship for secondary education. In partnership with Zensho Group (a tea buyer in Japan), a community library is currently under construction at St John Thaita Secondary school.



HEALTH

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In partnership with local health institutions, the factory organizes for medical camp for limited services including HIV testing & counseling.In partnership with KTDA Foundation, a wellness caravan and medical camp was organized in the month of August 2014 with the support of Taylors of Harrogate (a UK tea buyer) at two different locations within the factory catchment.

What is unique about Kangaita?

Farm/largest nursery, next to TRI, specialty teas, ideal choice for most KTDA functions e.g. Safaricom cashless



Safaricom CEO, Bob Collymore and KTDA Group CEO, Lerionka Tiampatiduring the launch of the FDS M-PESA payment system at Kangaita in July 2015

MILESTONES…..over the years

Provided by government t h r o u g h m i n i s t r y o f agriculture. Tea office was at Kagumo market.

Field days were organized at National level, one county wide

Up to early 1960s, tea seedlings were from tea seeds

Leaf collection was by Bedford vehicles and tractor pulled trailers due to poor road networks

There was a leaf collection clerk posted at every buying centre.

> VHF radios were used to transmit data from factory to h e a d o f f i c e a n d communicate with other factories> U s i n g f a x t o s e n d documents

P r o v i d e d b y f a c t o r y employees, Tea Extension Services Assistants. Farmers have also been empowered to train their peers through the Farmer Field Schools (FFS)

Field days done

Tea Research advanced technology to current where tea seedlings are now from vegetative propagated (VP) cuttings

Modern more eff ic ient vehicles used reducing turn around time

With modern technology and improved efficiencies factory uses a Logistic Assistant who drives the leaf collection vehicle and also buys the green leaf. No need to have a clerk at the buying centre.

> Modern technology has been embraced. Emails and intranet are widely used to transmit data and reports. Modern telephony systems are also in use. > Use of emails

Tea ExtensionServices

Vehicles

Leaf Collection

Communication

OLD DAYS NOWADAYS



Sisal bags with variable tare weight were used

Payslips for farmers were printed centrally at KTDA head office and sent to factory using huge metal box by Securicor courier

Most growers were paid cash for green leaf deliveries with clerical staff and police officers being used to take payments to them at buying centres

M a n u a l d i a l & c h a r t weighing scales were used at buying centres

Updating of grower leaf delivery records were done on voluminous books

Green leaf delivery receipts for farmers were done manually on a duplicate receipt book.

Deliveries to the factories were also manually written on duplicate books

Constant Weight bags are in use with a fixed tare hence no manipulation

Payslips are printed at the factory office

Growers payments are sent d i re c t l y to t h e i r b a n k accounts

Electronic Weigh Solution technology in use where digital weig scale, PDA and a p r i n t e r, a l l B l u e t o o t h connected, is used

Data is digitally captured with the PDAa and updated when synchronized at the factory daily.

Mondern technology applied where a real time receipt is printed for the grower at the point of buying the leaf (buying centre).

Delivery is generated and automatically sent to the factory server immediately

GrowersPayment

Green LeafBuying

OLD DAYS NOWADAYS



Hand operated d iese l dispenser with gallons as the units was used

Labour intensive, highly mechanical machine and equipments were in use

Tea was packed in aluminum foil lined wooden chest

Only CTC (crush, tea & curl) were produced

Digital diesel dispenser in use with program to capture vehicle millage and data storage for monitoring fuel usage

A u t o m a t e d m a c h i n e s requiring less labour are in use

Multi layered Kraft paper sacks are used

Orthodox manufactured teas and other specialty teas are being produced

Fuel Station

Tea Manufacture

OLD DAYS NOWADAYS



The Electronic WeighingSystem in use

KANGAITA TEA FACTORYP. O. Box 88-10300, Kerugoya - Kenya

Tel: +254 720 960 274Email: [email protected]

Website: www.ktdateas.com

KENYA TEA DEVELOPMENT AGENCY LIMITEDP. O. Box 30213, 00100, GPO, Nairobi-KenyaKTDA Farmers Building, Moi AvenueE-mail: [email protected]

Tel: +254 20 3227000-2 / 2221441-4, +254 20 2211240Facebook: https://www.facebook.com/ktdateasTwitter: @https://twitter.com/ktdateaWebsite: http://www.ktdateas.com

kangaita tea factory - kenya tea development agency · pdf filemr. j. o. michoma - regional...

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