COMMISSIONING

Makomboki Tea Factory was constructed between 1979 and 1981 and commissioned on 21^st September, 1981.

MEMBERS OF BOARD                    TITLE                               ELECTORAL AREAS

1. MR. .P. K. NDIRANGU             CHAIRMAN                                GATIA-INI
2. MR.J. M. MBOTE V/CHAIRMAN                             KIMOTHO
3. MR. J.B M. THUO DIRECTOR                                 MAIRI
4. MR. J. N. KINYANJUI             DIRECTOR                                 MAKOMBOKI
5. Ms. E. W. MBUGUA             DIRECTOR                                 KANGARI
6. Ms. F. M. MAINA DIRECTOR                                 KANDEREND

REGIONAL MANAGER

Ag. S. K. MWANGI

REGIONAL OPERATIONS MANAGER

MR J. M. MWENDA

MEMBERS OF MANAGEMENT

1. MR.M. ITHIGA                          – FACTORY UNIT MANAGER
2. Ms. M.N. .MUNYI                       – PRODUCTION MANAGER
3. Ms. J. GAICHUHIA    – FIELD SERVICES CO-ORD
4. MR. J. N. .MUCHAI                       – FACTORY ACCOUNTANT
5. MR. G. M. NJENGA              – ASS. FACTORY ACCOUNTANT
6. Ms A.MURIITHI                    – FIELD SYSTEMS ADMINISTRATOR
7. Ms . CAROLINE               -PRODUCTION ASSISTANT
8. MR. JACKSON LANGAT               – MANAGEMENT TRAINEE

COMPANY’S MISSION STATEMENT:

“To increase production of Tea per Bush within Makomboki catchment area, improve quality and reduce collection and production cost. Hence enhance the income to the farmers per unit area of production.”

COMPANY’S VISION STATEMENT:

“To be the leading management and marketing company of high quality tea products in the world”

TYPE OF TEA PRODUCED

Black CTC Tea.

LOCATION:

Ø  Situated in Muranga County, Kigumo Sub- County, Kangari Ward, Makomboki Location approx.90Km from Nairobi and 40Km from Thika.

Ø  Location: 1^oS of equator and 37^oE of meridian at a height of about 2160M above sea level.

Ø  The factory occupies an area of 19.8 acres

Ø   It serves 7120 growers in 163 leaf collection centres. Coded – 57, Uncoded – 106

Ø   The area under tea is 1874.02 hectares with a total of 20,523,304 tea bushes.

NATURAL FEATURES:

Aberdare Ridges, Ndaka-ini Dam

OPERATIONS AND MANAGEMENT

Ø  The Company’s supreme authority is bestowed upon the Board of Directors who authors the corporate policy.  However, the day to day running of the Company business is undertaken by K.T.D.A Ltd which is contracted to offer both Management and Secretarial Services.

Ø  The Company provides direct employment to about 200 workers most of whom are from the catchment area. The labour level is however variable owing to the seasonality of the tea produce.

3. Tea Production

YEAR                 G/L (KGS)         MADE TEA            O/T   1^ST PAYMENT      2^ND PAYMENT     TOTAL (KSHS/KG GL)       AV.PRICE

2011/2012         18,391,494        4,228,126.35           22.94       14.00       40.60                54.60                               3.27

2012/2013         22,892,445.2      5,330,200.75         23.28       14.00       37.10                 51.10                             3.49

2013/2014         24,778,416.7      5,690,217              22.80      14.00        22.65                 36.65                                          2.62

2014/2015         21,286,318.6       4,985,125               23.42      14.00       33.00                 47.00                                          2.76

2015/2016         26,609,346.3        5,994,865             22.53     14.00                      42.00                56.00                                      3.09

2016/2017        20,946,446.1         5,065,584.            24.18    15.00           58.42                           73.42                                  3.54

2017/2018        24,281,032.3        5,756,577.4.          23.71     16.00            48.20                            –                                        3.44

2018/2019         22,681,328.9        5,766,925.8           25.43     16.00             36.5                            52.5                                       2.81

2019/2020         26,205,326.24       6,838,347.23          24.13     16.00            30.1                     46.1                         2.65

2020/2021          26,626,044.58       6,765,932.32          25.41     16..00                   27.50                   43.5                               2.37

Cumulative green leaf processed in the factory to date June 2021 = 26,626,045 Kgs

4. CLIMATE CHANGE MITIGATION MEASURES – ENERGY ALTERNATIVES

Makomboki Tea Factory is now using a greener and cheaper fuel; briquettes made of biomass. A donation by donors through Living Earth foundation of UK purchased for us a briquette press machine. The factory paid for duty, clearance and transport costs. This has a capacity of 250kgs/hr of briquettes. For us to run using briquettes only we need at least a briquettes press machine of a capacity of 1000kgs/hr.

This has reduced the energy tremendously. Previously the company was consuming up to 10 000 metres of firewood. It has also saved about 30,000 trees which would have otherwise being cut down to serve this purpose.

We have incorporated the use of briquettes with sawdust and cashew nuts/ macadamia husks.

This project has elicited a lot of interest from other stakeholders and if replicated in other factories, it will have a far reaching effect on our environmental conservation.

The following are calculations illustrating the savings realized;

250kgs/hr X 12HRS=3000KG/Hr

Boiler Consumption

450-500 Kg/Hr

Total cost of Production = 4.39 Ksh/Kg (Electricity, Labour /Raw Material)

Cost for running the Boiler Per Hour

500 x 4.39 = 2195 Kshs/Hour

For 3000Kgs made per day running for 6 hours the cost will be:

Kshs. 2195 X 6 =Kshs. 13,170

The Alternative; which is Firewood running for 6 hours;

2M³  per hour for 6 Hours = 12 M3

Cost of 6 hours on boiler using firewood

12 M3 X Kshs. 2300 =Kshs. 27,600

The saving done during the 6 hrs’

Kshs. 27,600 – Kshs. 13,170 = Kshs. 14,430

This translates to Kshs. 14,430

(e) Marketing

5. This is done mainly by KTDA Ltd. Through the following outlets
6. Mombasa Auction – 79.42%
7. P. Overseas –        19.94%

iii.            FDS         –        0.64%

 (f) Road Maintenance

1. Tea Cess money is used in supplementing road maintenance in the catchment area through enhancing drainage systems and gravelling of tea roads.
2. Challenges

Ø  High costs of production due to increased costs of inputs such as fuel and electricity.

Ø  Lack of land for the factory tree planting project in spite of a well established tree nursery.

Ø  Depressed market prices occasioned by international conflicts and war especially in strategic market outlets coupled with other market forces.

Ø  High expectations from the growers against a depressed economy.

• Future Plans

Ø  Increase crop production per unit area through intensified extension services.

Ø  To provide all-weather infrastructural network in co-operation with other players.

Ø  Ascribe to international manufacturing standards. We are Fairtrade, Rainforest Alliance, ISO 9001:2015 and 22000:2018 certified .

Ø  To enhance a forestation programmes within and outside the catchment in order to improve the environment and also boost firewood production.

Ø  To explore the possibility of local power generation in order to cut down on electricity bills.

Ø  We intend to have all farmers practice sustainable agriculture, F.F.S approach adopted and R.A certified.

FARMER FIELD SCHOOLS AND RAINFOREST

RAIN FOREST CERTIFICATIONS

ENVIROMENTAL AWARDS

Makomboki has been a 2times winner of awards from Marks and Spencer Kenya Plan A competition in regard to;

1.Climate change sensitization programmes and trainings

2.Environmental conversation initiative.

3.Increasing green house gases sinks.

4.Waste management trainings.

5.Reducing green house emissions and energy use.

6.Practising of GAP.

Farmer Field Schools – All the 57 Buying Centers of Makomboki Tea Factory have embraced the FFS curricular and methodology and have been conducted as follows;

The Following are the Benefits of Farmer Field School (F.F.S.)

– The farmer builds a capacity to make critical and informed decisions that render his/her farming practices, profitable and sustainable.

– Make a farmer an expert in his /her own field where knowledge and skills are empowered. A new approach of thinking and solving problems is derived.

-Farmers learn new methodologies on self organization and creation of networks with service providers.

SPECIAL  PROJECTS & CORPORATE SOCIAL INVESTIMENT REPORT FROM 2009-2021.

Makomboki Tea Factory believes in working together and supporting the surrounding communities. From date it was established it has partnered and collaborated with different companies, tea buyers, government agencies and community in undertaking different projects for the benefits of all residents. Projects that promote social, economic and development of tea growers, workers and surrounding communities have been initiated and completed.

This includes:

(A).SOCIAL WELFARE PROJECTS

1. a) We have provided cheap & accessible health care
2. b) Trained over 500 youths on self reliance, HIV & AIDS, Entrepreneurship, 20 have driving licenses, provided youth training kits, and 80 on IT. We have noted that 50% trained have been employed in surrounding institutions, schools and supermarket.
3. c) Staff have been trained on driving (120), 29 on dressmaking, 15 on hairdressing, 20 on business courses, 8 on knitting, 5 in IT and 300 on health & safety and food production

(B).ENVIRONMENTAL PROTECTION/DEVELOPMENT

1. a) Acquired 10 acres of land for planting of trees to cut down on energy costs and provided farmers with indigenous seedling to plant in their farms
2. b) Constructed 3 incinerators at the three dispensaries for proper waste management
3. c) Provided assorted food crops such as Macadamia, Banana, Tree tomatoes, ovacadoes and indigenous tress to over 6000 farmers and workers.
4. d) Established tea and indigenous tree nurseries at factory. After maturity of seeds we supply

(C).PUBLIC UTILITY SERVICES

1. a) Connected 56 buying centers with power
2. b) Enabled over 2550 farmers to access power line hence engage in income generating projects I.e poultry, horticulture, welding and computer services within the community.
3. c) Connected power to Mairi, Kairitu, Gatia-ini & Mwarano primary school-pupils undertake their studies in better environment

3-b Piped water

Enabled community to be licensed as a water service provider both for irrigation and domestic use. (3500 homestead and 12500 livestock, company, 5 public schools, access to clean, reliable and adequate piped water).

3-c Toilet construction

i)35 w’c at Makomboki Primary

ii)12 w’c at Gatia-ini primary

Iii) 4 w’c at Mwarano primary

1. iv) 2 w’c at St.Francis Mukuyu-ini secondary school
2. v) 10 w’c at Kairitu primary
3. vi) 4 w’c at kimotho primary

We have noted improved hygiene, pupil’s concentration and academic improvement in all these schools

(D).SOCIAL/COMMUNAL INFRASTRUCTURES

1. i) Building schools

-Started Kairitu primary school from acquiring 3 acres of land, constructed 8 classrooms, toilets, registered with ministry of education and its in operation. It has population of appr.360 pupils and 15 staff. It has always being top ten within the constituency and able to enrol many pupils in national and provisional secondary school.

In addition

-Constructed 3 classrooms at Kimotho Primary

-Constructed 1 classroom at Gatimu primary

-Renovated 10 classrooms at Makomboki primary

-Renovated 3 classroom at Mairi primary

-Constructed 2 classroom at Mairi secondary school

1. ii) Dispensaries/maternity ward

-Completed structural and equipping of 3 dispensaries, 1 maternity which are in operation under Muranga county government. They serve around 40 patients on busy days and have been able to cure mainly diseases related to water, air borne and give first aid to those with chronic diseases. The residents have been able to access affordable and easily accessible medical services

1. ii) Maternity wing

-Kanderendu Maternity wing is completed and requires deployment of staff by Muranga county government

(E).OTHER PROJECTS

1-Provided 60 lockers & chairs at Gatia-ini primary school

2-Provided 80 lockers & chairs at Mairi primary school and 30 at Kimotho primary

3-Allocated bursaries to 3500 students for past years hence eased the burden of fees and reduced dropout rate associated with lack of fees and reduced illiteracy.

4.-Renovated 42 buying centers

5-Renovated staff canteen, started a revolving fund for staff to access soft loans, purchased plots (2 acres at maguguni), motorbike (49pcs), 29 chaffcuter, 25 waterpumps and laptops (17pcs) for the staff.

6-Provided medical assistance to a disabled child and offered foodstuff, manure & seedling to a disabled class at Mairi primary

7-Levelled, planting grass and fenced Mairi playing ground for recreation purposes

8-Constructed swings & kitchen at Makomboki nursery

9-Provided relief food to over 1500 needy residents of Makomboki area

10-Constructed 2 bus stop sheds

11-Acquired, cleared and levelled 12 footpaths and 1 road to enable free movement of goods and people

IN PROGRESS PROJECT

1. Completion of Makomboki dispensary

We have partnered with by Athi Water Services Board on its completion. The project has been fully financed by AWSB and work is on going under supervision of AWSB

2. Recover Africa project: Objectives achieved
3. Provided assorted food crops to farmers and workers
4. Provided chicks to famers groups
5. Trained farmer groups on soap production
6. Provided masks and sanitizer to farmers and staff
7. Received machine for soap production and materials

Objective remaining

(c)  Training selected members within trained groups on operation of Machine

(d)  Planning and organizing how each group will produce soap at factory level

UNCOMPLETED PROJECTS

1. Polytechnic workshop and Maternity wing at Kanderendu

We are sourcing for funds and partnership in completion projects.

2. Nursery establishment project

This Sainsbury funded project. We expect to receive the funds as per the proposal to initiate the project. The nursery will be established at Factory land. The funds will be channelled through KTDA foundation. (see project file)

4) PROJECT OUTCOME

The completed projects has enabled our residents especially low income earners (farmers and farm workers) to have access to clean and safe water, improved hygiene, provided access to affordable medical services, reduced congestion in classes, empowered and capacity building of staff, enabled women become self reliance and start-up income generating projects, increased pupils performance and enhanced mental growth and empowered youths.

The statistics from the government institution within catchment area indicate that Fair-trade projects has played a big role in location development, school drop out rate due to financial constraints reduced from 15% to 5%, start of income generating projects boosted by 30% (trainings, water & power projects), enrolment in primary, secondary & college school increased by 20%, reduced water-borne disease from 10.5% to 4.5% this due to access to clean water and free medical services.

5. CHALLENGES

OVER EXPECTATION FROM STAKEHOLDERS:-

Project proposed by stakeholders are overwhelming. Different interested people have presented many proposals which surpass the available resources. Hence several projects has taken long period to completion approximate 4-7 years

DWINDLING PREMIUMS:-

Our major source of funds and partners has been fairtrade tea buyers. Over the years many buyers have shifted in buying teas from factories with low tea prices. This has lead to dwindling of fund in terms of premiums.

LACK OF BUYERS CONSISTENT:-

To get willing consistent buyers is another big challenge .Only about 5% of our production is sold through the fair-trade market.

LACK OF FINANCIER IN CAPITAL INVESTMENT

To get a committed source for capital investment remain a major challenge.

MAINTENANCE OF THE SET STANDARDS:-

All through, the required set standards in the organization have to be maintained and improve them continually. Failure to maintain them, may lead to disqualification which is very expensive to comprehend. Therefore, all through, the standards have been maintained which are costly to factory.

POSSIBLE SOLUTION

6. Compiling a Success Stories to buyers
7. Engaging buyers to network for possible partnership within their reach.
8. Possibility of cost sharing.
9. Thorough follow up to ensure all those buying as fair-trade teas commit to the standards (remitting the premiums

Factory Directors