Factories affiliated with the Kenya Tea Development Agency (KTDA) have stepped up the sale of hundreds of acres of idle land they had acquired to grow trees for firewood after they switched to own-generated electricity. The factories are also selling thousands of trees they no longer needed.
Kionyo Tea Factory is the latest KTDA-run plant that is seeking to sell a portion of its land.
Kionyo is seeking to sell two parcels of a total of 55.105 acres of land at Abothuguci in Meru with one parcel at Lower Kaongo measuring 33.85 acres and the other at Makandune measuring 21.25 acres.
“The land is accessible via Meru-Ena road approximately 1.2 kilometers east of Kaare market center and 7km North of Makandune Market center in Mitunguu area Meru County,” said KTDA Management Services Ltd which is undertaking the sale on behalf of the factory.
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At the same time, KTDA is selling some 20,600 eucalyptus trees on a 70-acre plantation at Kangaita Farm in Kirinyaga County.
“The plantation covers 7o acres with a population of about 20,600 trees of which 48.54 percent is classified as transmission poles while the rest is wood fuel. KTDA shall only sell transmission poles with the remaining biomass to be sold separately as firewood,” said KTDA.
The company is also eyeing to sell 18,655 eucalyptus coppices at Gituamba Farm in Murang’a County.
The farm was last harvested in 2019 and the stumps in the plantation have coppiced with most of them having more than one coppice, said KTDA.
This comes at a time KTDA factories are now selling hundreds of acres of land they had acquired to grow trees for firewood after they switched to own-generated electricity.
The tea factories have in recent months embarked on a land-selling spree to recoup cash from their idle assets to invest in other ventures.
In December last year, KTDA Management Services Limited issued a notice for the sale of 71 acres of land in Rwika, Embu, on behalf of Rukuriri Tea Factory.
“The property referred to as Rwika2 farm is 71 acres land formerly with tree plantation,” said KTDA.
The company also put on sale 106.47 acres in Mununga, Naivasha, on behalf of the Mataara Tea Factory and another 86.8 acres in Segera, Laikipia, belonging to Chinga Tea Factory.
This follows bids last year to sell 101 acres in Mururiri, Embu, belonging to Mununga Tea Factory, and another 200 acres belonging to Ndima Tea Factory in Kihato, Laikipia.
Tea factories consume huge amounts of energy, which contribute to about 30 percent of their operational costs, and have for decades mostly relied on firewood fuel to power their operations.
But firewood proved expensive despite most tea factories owning their tree plantations, forcing many to invest in cheaper energy sources, especially hydroelectric power, and solar energy.
In addition to meeting most if not all of their energy needs, tea factories are now selling excess power to Kenya Power which has increased their revenues.
Apart from the global push for a cut in the use of dirty fuels such as firewood to reduce greenhouse emissions, tea factories are now unlocking fresh capital through the sale of their land assets to invest in more lucrative ventures, especially power generation. BY DAILY NATION