KTDA Subsidiary Companies
As part of its business and product diversification strategy and in an effort to maximize the returns to the tea farmers, KTDA holdings has over time set up the below subsidiaries, which provide specialized services which are integrated with its core services.
1.Chai Trading Company
2.Majani Insurance Brokers
3.TEMEC (Tea Machinery and Engineering Company)
4.Greenland Fedha Ltd
6.KTDA Management Services Ltd (MS)
7.Kenya Tea Packers Ltd – Not fully owned KTDA
8. KTDA Foundation
CHAI TRADING COMPANY LIMITED
The company was incorporated as a trading subsidiary of KTDA Ltd on the 1st day of September 2003. The Company is based at the Miritini Warehousing Complex, Mombasa and was initiated in October 2003 with a general, mandated to carry out bulk packing, buying and selling of high quality tea to local and international destinations and customers.
Its core mandate is warehousing, blending, clearing and forwarding, value addition, export and general tea trading.
MAJANI INSURANCE BROKERS
The company started as Kenya Tea Development Authority Insurance department in 1976, catering for KTDA insurance concerns. As business grew there was need to extend the excellent insurance services to the general public. In 1998 the commissioner of insurance licensed the firm as an insurance broker.
Majani is an active member of the Association of Insurance Brokers of Kenya (AIBK)
GREENLAND FEDHA LIMITED
GFL core business is provision of affordable credit to farmers. It began its operations as a non-deposit-taking microfinance company. Its mandate is to provide affordable financing, initially to small scale tea farmers, and to increase access to financial services among the lower income and rural households in Kenya’s tea growing areas.
KENYA TEA PACKERS LIMITED
The Kenya Tea Packers Limited (KETEPA) was registered as a Private Company in September 1977 and started operations in January 1978. The company was required by law to serve the local market only. The law was changed in 1992 which allowed export of tea. KETEPA now exports packed tea to destinations around the world.
Ketepa is owned by the tea Farmers of Kenya through the Kenya Tea Development Agency Limited (KTDA) and the Kenya Tea Growers Association (KTGA). The Kenya Tea Development Agency is the majority shareholder representing over 450,000 small scale tea farmers spread all over the country. These farmers own over 60 Tea Processing Factories countrywide and produce over 60% of all the Kenyan Tea. Other major shareholders include Brooke Bond Kenya Limited (Unilever Tea), James Finlay , Williamson Tea and Eastern Produce(EPK) among others who together own 38 tea processing factories and produce about 40% of the tea produced in Kenya.
Kenya Tea packer limited is committed to sourcing, blending, packing and marketing of the highest quality teas with its objectives being establishing and maintaining an effective quality management system, measuring all aspects of the quality management system as a basis for continued improvement and improving the system through training and investment in new technology.
TEMEC (TEA MACHINERY AND ENGINEERING COMPANY)
The company was incorporated on 3rd February 2014.Among other key objectives the company carries on all kinds of business relating to supply of entire equipments required for tea processing, steel plants, fertilizer factories and other industrial projects and their ancillary services and in particular, to take up contract for design, manufacture, inspection, supply, erection, and commissioning of all kinds of equipments for the various Tea Factories and beyond.
The company was established to provide a modern workshop for fabrication and assembly of tea machinery and agency services for the tea factories. It will reduce the need for expensive imports and introduce capacity for technological enhancement
The company was incorporated in January 2010, it invests in the energy sector and manages small hydro-power projects owned by Factory Companies). The pilot Imenti Mini-hydro Power Plant. The hydro plant is capable of generating 1MW of electricity, out of which the factory consumes about 0.5 MW and the surplus sold to the national grid under a power purchase agreement with the national distributor, Kenya Power and Lighting Company (KPLC). Plans to develop 12 other mini-hydro power plants across the tea growing regions are underway. They are expected to generate a total of 22 MW when complete.
KTDA MANAGEMENT SERVICES LTD
KTDA MS manages the 65 tea processing factories through management agreements with the respective Factory Companies.
NOTE: These subsidiary companies are investments on behalf of the shareholders. (Tea Farmers) Dividends declared from profits made by these subsidiaries are eventually paid to farmers through their respective Factory Companies.
KTDA Foundation Limited is a non-profit charity of the Kenya Tea Development Agency (Holdings) Limited. It was incorporated on 17th April 2010 under the Companies Act (Cap. 486) as a company limited by guarantee. The Foundation raises funds in Kenya
and from abroad to initiate and support programmes that improves the welfare of small-holder tea farmers in Kenya and participates in other needy causes. It is the vehicle through which KTDA (H), its Subsidiary Companies and Factory Companies carry out Corporate Social Responsibility (CSR) activities. Subsidiary companies for the KTDA (H) include Chai Trading Limited, Ketepa, Majani Insurance, KTDA Power TEMEC and Greenland Fedha.