$27.5 million investment to meet the energy needs of Kenya’s tea industry

Tea comprises Kenya’s largest export crop and contributes to $1 billion in yearly export volumes. The country is the third largest tea producer in the world and the tea industry supports the livelihoods of millions of its citizens, especially smallholder farmers.


Kenya Tea Development Agency Holdings Limited (KTDA), a long-standing and strategic IFC Agribusiness client in Sub-Saharan Africa, is the largest tea business in East Africa. It services 562,000 smallholder tea farmers, who are suppliers as well as shareholders of 54 separate tea companies owning a total of 66 tea factories. It also accounts for approximately 60 percent of the country’s tea production. This combined IFC and GAFSP investment will assist in the design, construction, operation and maintenance of seven run-of-the-river small hydropower plants with a total installed capacity of 16MW in various locations across Kenya. These hydropower plants will provide captive power generation for KTDA’s tea factories and will sell any excess to the state-owned utility company.


The GAFSP Public Sector Window is also funding the Small-scale Irrigation and Value Addition project (SIVAP) in Kenya.


More information

Contact Information:

  • Mr. Niraj Shah (Head, GAFSP Unit for IFC, nshah1@ifc.org,+1-202-473-3743), based in Washington D.C.