- Chai Trading plans to cut tea storage costs and boost farmers’ returns.
- A mega warehouse in Miritini is expected to be completed in 2027.
- The company targets new markets, more buyers and stronger tea prices.
Tea farmers supplying Kenya Tea Development Agency (KTDA) factories could soon earn more from their leaf, after Chai Trading Company Limited (CTCL) unveiled a five year plan to cut storage costs and widen its trading reach.
CTCL is a subsidiary of KTDA Holdings. In a statement on October 18, KTDA Holdings said the strategy centres on technology and infrastructure that make tea handling cheaper and faster. Higher dividends for farmers are the intended result.
At the heart of the plan is the Mega Warehouse Complex in Miritini, Mombasa. Construction is due to finish in 2027, which is the first year of the strategy. Once operational, the facility will hold nearly all tea from KTDA managed factories under one roof.
Centralised storage is expected to ease handling and trim the expenses that factories currently bear. As a result, savings from leaner operations should flow back to growers through better returns on every sale.
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Beyond the warehouse, CTCL intends to grow its trading arm. It plans to enter new markets, attract more buyers and extend its product range. This forms part of a wider KTDA Holdings push to secure stronger prices for farmers in a competitive global market.
The launch was led by CTCL Chairman David Ndung’u and Managing Director CPA Dorcas Mohammed, alongside members of the company’s board and management. KTDA chairman Enos Njeru and Group Chief Executive Officer Eng. Francis Miano were also present, together with other senior officials.
Overall, CTCL says it wants to become Kenya’s leading tea trading and warehousing company while raising the commercial value of the tea it handles for growers.
For farmers who depend on tea income, however, the real test will come later. The plan will succeed only if the new infrastructure and market expansion deliver lower operating costs and higher payouts.
By Benedict Aoya
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