KTDA

completed

Kenya Tea Development Agency Holdings (“KTDA (H)”) is seeking IFC financing for the construction of a 200,000ft2 warehouse in Mombasa. Kenya Tea Development Authority was established in 1964 as a government agency to promote tea growing in small farms. In 2000, Kenya Tea Development Agency Limited was incorporated as a private company, becoming one of the largest private tea management agencies in East Africa. KTDA is owned by 54 individual tea companies that operate 65 tea processing factories across Kenya. Each tea company is owned by a number of smallholder tea farmers; there are approximately 562,000 smallholders supplying tea leaves to KTDA companies. Smallholders are farmers with plots close to their homes, used for small scale cash crop farming, subsistence farming and stabling of farm animals. Tea smallholders in Kenya typically own 0.5 to 2 acres of land used primarily for tea farming; each farmer produces an average of 1500 kgs of tea (green leaf) per year.KTDA (H) operates through a number of subsidiaries:KTDA Management Services (KTDA-MS) - provides management services to KTDA’s tea factories; Chai Trading Company Limited (CTCL) - provides warehousing and logistics services to KTDA’s tea factories;Kenya Tea Packers (KETEPA) - packages and brands tea produced by KTDA factories for the local market; Majani Insurance Brokers - provides insurance brokerage services to KTDA and other clients; Greenland Fedha - provides microfinance services to KTDA farmers; Kenya Tea Power Company (KTPC) - a power development company that focuses on renewable energy; and KTDA Tea House Ltd – a tea lounge in Nairobi.IFC funds will be invested exclusively into the warehouse project. The construction of the warehouse will be managed by KTDA-MS through a civil contractor (contract yet to be awarded) and the operation of the warehouse will be managed by CTCL.