In 2019, Kenya Tea Development Agency (KTDA) revealed intentions to evaluate a paper manufacturing plant as part of its strategy to expand revenue beyond tea production, according to a March 11 publication.
The agency issued a request for proposals from consultants to conduct a feasibility study on producing paper products including tea sacks, paper bags, and cement sacks. The initiative aligns with KTDA's broader diversification goals, though industry stakeholders have previously questioned the focus on subsidiary ventures.
KTDA's tree-planting programs have resulted in over 1.6 million trees cultivated since 2017, including 150,000 seedlings in the 2018 financial year. Subsidiary operations, such as Chai Trading Company Limited, generated significant profits, with the logistics arm reporting a 16% turnover increase to Sh19.3 billion in 2017/2018.
Smallholder farmers received Sh85.74 billion in payments during the 2017/2018 period, reflecting a 9.4% rise from the previous year. However, green tea prices fell to Sh52.51 per kilo in the 2018 season, down from Sh58.61 in 2017, attributed to rising production costs and market volatility.
