The government has stepped up efforts to reduce the cost of tea production following the launch of the Sh1.7 billion Taunet Small Hydropower Project in Nandi County, a move expected to boost farmers’ earnings and enhance sustainability in the sector.
Head of Public Service Felix Koskei, who was the chief guest at the ground breaking ceremony at Kapkangani Ward, Emgwen Constituency said the project is a key intervention in lowering manufacturing costs, particularly electricity, which has long burdened tea factories.
The project which is being implemented by the Kenya Tea Development Agency through Chemuka Power Company Limited, is expected to generate between 2.8 megawatts of clean energy using a run-of-the-river system along River Yala.
“By harnessing the power of River Yala through a run-of-the-river system, we are adopting a clean, sustainable, reliable source of energy, one that will serve Chebut, Kaptumo, Mudete and Kapsara tea factories and by extension the thousands of farmers who depend on them,” he said
Koskei emphasized the need for factories to adopt cost-cutting strategies, including investing in self-generated power, to reduce production expenses and improve farmer returns.
He lauded farmers for their critical role in sustaining the country’s economy, noting that agriculture remains central to food security, foreign exchange earnings, and education.
“Farmers are holding the economy of this country. We must ensure good governance in our factories, eliminate wastage and mismanagement so that farmers can get value for their produce,” he said.
He commended Kaptumo Tea Factory for its strong performance and urged other factories to emulate its standards while maintaining accountability and transparency.
The Chief of Staff also challenged farmers to take advantage of emerging global markets, particularly China, which he described as a major opportunity for Kenyan tea exports.
“With a population of over 1.5 billion people compared to Kenya’s 50 million, China presents a huge market. Farmers should increase production to meet this demand,” he said.
At the same time, Koskei encouraged diversification, urging farmers to venture into dairy farming, avocado growing, sugarcane, and coffee cultivation to cushion themselves against price fluctuations in the tea sector.
“We want this region to be a hub of cash crops so that when one crop fails or prices drop, another sustains farmers’ incomes,” he added.
Agriculture Principal Secretary Dr. Paul Rono said the Taunet hydropower project which is expected to be completed in 15 months will significantly reduce electricity costs for tea factories, improving efficiency and profitability.
He added that the government has put in place mitigation measures to shield farmers from global shocks, including disruptions caused by international conflicts.
KTDA Holdings Acting Group CEO Eng. Francis Miano described the initiative as a game changer that will address high energy costs, one of the biggest challenges facing tea production.
“This project will deliver lower energy costs, reliable power supply, improved efficiency, and ultimately better returns for farmers. It reflects our ‘Farmer First’ commitment,” said Miano.
For tea farmers, the project signals a major shift in their livelihoods. Lower electricity costs mean factories will spend less on processing, translating to higher bonuses and better monthly payments. Reliable power will also reduce production interruptions, preserving tea quality and ensuring farmers’ produce fetches competitive prices in international markets.
Additionally, the use of clean energy opens up opportunities for farmers to benefit from carbon credit earnings, providing an extra income stream. With improved efficiency at factory level, farmers are also likely to experience faster processing of their green leaf, reducing post-harvest losses.
Area MP Josses Lelmengit termed the project a major milestone in strengthening renewable energy and supporting the tea sector.
“Once completed, it will provide clean and affordable electricity to Chebut, Kaptumo, Mudete, and Kapsara tea factories, helping lower production costs, support the regions socio economic development and improve returns for our hardworking farmers,” he said.
Stakeholders said the project underscores the government’s commitment to sustainable energy, agricultural value addition, and rural economic empowerment, with thousands of smallholder tea farmers expected to benefit upon its completion.
By Linet Wafula
