Inside bold 5-year-plan to cut tea farmers’ costs and boost earnings
Chai Trading Company Limited (CTCL), a subsidiary of Kenya Tea Development Agency (KTDA) Holdings, has unveiled a five-year strategic plan aimed at reducing tea warehousing costs, expanding trading opportunities and increasing returns to farmers. The plan prioritises investments in technology and infrastructure to improve the efficiency of tea storage and trading operations while maximising…
Kenya Tea Development Agency (KTDA) subsidiary Chai Trading Company Limited (CTCL) has introduced a comprehensive five-year strategy to cut tea farmers' costs and enhance earnings. The plan zeroes in on reducing warehousing expenses, broadening trading prospects, and raising farmer returns. Central to this strategy is the construction of the Mega Warehouse Complex in Miritini, Mombasa, slated for completion by 2027.
This facility is anticipated to slash warehousing costs for KTDA factories and tea growers while providing a centralized storage hub for the majority of tea produced by the group’s factories. KTDA highlighted that the CTCL initiative is geared towards delivering more value to tea farmers by improving efficiency, cost-effectiveness, and sustainability in warehousing and trading operations.
The corporation aims to achieve this through technological and infrastructural enhancements, projecting a reduction in warehousing expenses that would eventually translate into better returns for farmers. Additionally, CTCL intends to expand its trading arm and venture into new markets, aiming to boost its customer reach and product assortment.
This diversification is set to solidify CTCL’s place in the tea trading sector and create avenues to interact with additional buyers and markets. The plan also underscores a commitment to sustainable business practices, with investments in technology aimed at enhancing trading and warehousing efficiency. The launch of this strategy was spearheaded by CTCL Board Chairman David Ndung’u, Managing Director CPA Dorcas Mohammed, and other board and management members.
The event was graced by KTDA National Chairman Enos Njeru, Group Chief Executive Officer Eng. Francis Miano, and other senior KTDA officials. The five-year plan underscores CTCL’s ambition to become Kenya’s leading tea trading and warehousing company, while also focusing on improving the commercial value of tea handled on behalf of farmers.
For tea growers relying on their produce earnings, the strategy's success hinges on whether the planned infrastructure investments and market expansion lead to reduced operational costs and improved returns.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
