Nairobi, Kenya, April 14, 2016 —
IFC, a member of the World Bank Group, and Kenya Tea Development Agency
Management Services Limited (KTDA-MS) today launched a new Kshs420 million
initiative to improve yields and income for tea farmers in Kenya. The initiative
focuses on training farmers on crop nutrition, soil management and business
Through the initiative, IFC and KTDA (MS)
will conduct soil and leaf testing, and formulate the most appropriate
fertilizer blends to help farmers maximize their tea yields. Farmers will
also receive training on financial management to effectively manage their
farms and their incomes. IFC will work with KTDA on managing their wood
fuel supply, helping the company move to renewable energy sources.
Kenya is the third largest tea producer in
the world, and the tea industry supports livelihoods of thousands of smallholder
farmers. KTDA operates 67 tea processing factories across the country,
sourcing green leaf from 560,000 farmers, who are shareholders in their
respective factories, which in turn own KTDA Holdings Limited.
“KTDA (MS) is pleased to sign this
new partnership with IFC, one of our long-term partners. The project
will increase productivity of our smallholder farmers through improved
fertilizer and tea nutritional management. The partnership will also empower
our farmers to manage their income efficiently, thereby helping them make
informed decisions on how to save and invest their money,” Lerionka Tiampati,
KTDA Holdings Group CEO, said.
Tania Lozansky, IFC Head of Advisory for
Manufacturing, Agribusiness and Services said, “IFC and KTDA will use
innovative soil testing and sustainable forestry techniques to boost yields
and increase revenues for tea farmers in Kenya. IFC is committed
to supporting companies like KTDA, which have the potential to improve
living standards and reduce poverty for rural farmers.”
Supporting agribusiness is a priority for
IFC in Africa, as the sector is the primary source of employment on the
continent. The new initiative continues a long-standing partnership
between IFC and KTDA, which began in 2012, when IFC first invested in the
company’s expansion. In 2016, IFC made another loan of $55 million to
finance seven small hydropower plants to power KTDA’s tea factories.
The funding from IFC has been made possible
by the Government of Japan through the Comprehensive Japan/IFC Trust Fund
- Tokyo International Conference on African Development (TICAD) window.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org
The Kenya Tea Development Agency (KTDA) was
incorporated on 15th June 2000 as a private company under (CAP 486) of
the laws of Kenya, becoming one of the largest private tea management agencies.
The Agency currently manages 66 factories in the small-scale tea sub-sector
in Kenya. The agency is mandated with promoting and fostering the growth
and development of tea growing among the indigenous tea farmers. Its mandate
is to oversee and enhance the end-to-end processes from the cultivation
of tea, to the marketing of the same to local and international markets.