Iriaini tea Factory Company limited is located at Iriaini location, Othaya Division of Nyeri District. It’s well served with two major streams:Thuti and Gikira. The factory catchment is well linked to two major towns Nyeri (Provincial Headquarter 25 km away by a tarmac road and Nairobi Kenya Capital 138 km away.

The area is volcanic soil with Tea, Coffee and dairy farming being predominant. Food crops planted are maize, beans and vegetables.

The factory site area is 39 ¼ acres.


The factory was commissioned on 5th January 1981 with a shareholding capacity of 2115 farmers only holding 9% of the then share value. All then rest being under KTDA both as trustee and managing agent. The loan funding was a joint venture of the Kenya Government and African Development bank.


To provide effective Tea husbandry, collection and transport of high quality green leaf for efficient, quality manufacture of high quality tea. To invest in tea related profitable ventures for the benefit of shareholders and other stakeholders.


To be the leading producer and manufacturer of high quality tea in the Kenyan tea sub-sector and beyond.


The factory started with small scale holder farmers of an average of 0.5 acres totalling 510 hectares to a current hectare age 1145 ha.The green leaf production has increased from an initial 5.1 million in 1981 to current 12.7 m in 2005, with farmers increasing from 2115 to 5747 to-date

International certifications

Iriaini is a fair-trade certified factory

Chairman's Report


I hereby submit the report on the performance of the company during the financial year ending 30th June. 2012.
Crop production for the year was 12,661,032 kilogrammes of Green Leaf delivered for processing at the company's factory producing 2,916,369 kilogrammes of made tea at a conversion factor of 23.03% equivalent to 4.34 kgs green leaf for every 1 Kg made tea. This throughput and output was higher than last year's levels of 11,219,673 kilogrammes green leaf and 2,700,594 kilogrammes made tea by 1,441,359 kilogrammes and 215,775 kilogrammes respectively.
The average price realized per kilogram of made tea sold was Ksh. 280.81 against a price of Ksh. 253.30 in 2011.The price therefore increased by Ksh 27.51 per kilograms of sold tea. This year's price of one kilograms of made tea sold is equivalent to Kshs.64.70 per kg of green Leaf.
The average manufacturing cost for the year was Ksh 77.46 for every kilogram of made tea against the average manufacturing cost of Ksh. 68.59 per Kg for the last year. This translates to an increase of Ksh. 8.87 per every kilogram. This manufacturing cost includes monthly Green Leaf payment at Ksh 54.16 per kg of made tea for the year which is higher than Ksh 49.85 per kg for last year. This year's manufacturing cost was equivalent to Ksh.17.85 per kilograms of Green Leaf. The other manufacturing costs include; labour Ksh. 4.96, fuel Ksh. 6.65 and electricity Ksh. 11.69 and last year’ labour Ksh. 4.42, fuel energy Ksh. 5.18 and electricity Ksh. 9.13 for every kilogramme of made tea.
The company was able to make a payment to the farmers of Ksh. 672,474,212 for the Green Leaf delivered. This payment is higher than last year's payment of Ksh. 559,221,282. This translate to 78% to growers and last years 77%.The Company managed to pay an advance or first payment of Ksh 12 per Kg from July 2011 to March 2012 and Ksh 14 per Kg from April 2012 to June 2012 of Green Leaf delivered which is equivalent to Ksh 54.16 per kg of made tea.
The Board of Directors recommends a dividend of Ksh. 2,320,041 which is 2.5% of the issued class B share capital to be paid as final dividend to all shareholders appearing in the Company's share register as at 30th June 2012.
2011/2012 financial year saw Iriaini tea factory farmers earn the highest rate per kilogram green leaf since commissioning of the factory in 1981. This was attributed mainly to improved auction prices, favorable and relatively stable foreign exchange rates. The interest earnings on our investments during the period were equally impressive and these boosted our bonus payment.

 During the year, we partnered with Marks & Spencer on a value addition pilot project that involves packing of tea bags at source for sale in their chain of stores in UK. So far, 1,913.75. Kgs of tea have been sold earning the growers Kshs 1,068,636/= that translate to Kshs 558.40 per Kg. We hope this will go along way to boost our revenue in future especially if more kilograms are sold in the new market outlet. 
 During the year, we received a donation from our development partner Africa Now whom we thank most sincerely a Land Rover KBD 261G to assist in distribution of Value Added Tea and other operations.
 We continue to Endeavour to produce our own Firewood. The Muringato farm is progressing well. The bee and passion fruits project is picking up after the end of the harsh weather condition which affected the project negatively.
During the period the company was able to install a complete processing line that will go along way towards improving our operation effectiveness and efficiency in line with our strategy to modernize our plant to match our processing capacity of 15 Million kilogrammes. We shall Endeavour to continue improving our road infrastructures, maintain a healthy fleet, embrace the already achieved certifications (ISO 9001:2008, ISO 22000:2005 on food safety, Rainforest Alliance on sustainable agriculture, UTZ –good inside and FLO CERT on Fair trade), and have motivated personnel and all other stakeholders. 
Challenges and way forward
Our average production per bush was 1.2 Kgs which is below the target of 2.5 Kgs/bush. We urge all our growers to improve the general tea husbandly in order to improve production and quality. Our Gura Hydro Power Project in partnership with other three factories is at the implementation stages. This is further expected to lower our energy costs. Lastly, for our firm to remain relevant and competitive, we shall continue embracing technology and emerging trade requirements.
On behalf of the board of Directors, I wish to hereby express my thanks and appreciation to the staff of the company, shareholders and growers who supplied green Leaf to the company for their good work which has contributed to the success of the company during the year under review.
Ningetaka kuwatolea ripoti kuhusu vile Kampuni ilivyofanya katika mwaka ulioishia tarehe 30 Juni, 2012.
Mavuno ya Mwaka yalikuwa Kilo 12,661,032 za majani chai zilizopelekwa kutengenezwa katika kiwanda cha Kampuni. Kutokana na kiasi hiki cha chai, kilo 2,916,369 za chai iliyotengenezwa zilipatikana. Kiasi hiki kilikuwa juu ya kile cha mwaka uliotangulia ambacho kilikuwa kilo 11,219,673 za majani mabichi ya chai na kilo 2,700,594 za chai iliyotengenezwa. Mapato haya kwa kibadilisho cha 23.03 kwa mia ni sawa na kilo 4.34 za majani mabichi ambayo yanatoa kilo moja iliyotengenezwa.
Bei ya chai iliongezeka katika mwaka. Bei wastani ya chai iliyopatikana kwa kila kilo moja ya chai iliyouzwa ilikuwa Kshs 280.81 Bei hii ilikuwa juu ikilinganishwa na bei ya mwaka uliotangulia ya Kshs.253.30. Kwa hivyo Kampuni ilikuwa na tofauti katika hizo bei ya Kshs 27.51 kwa kila kilo moja ya chai iliyouzwa. Bei ya chai iliyotengenezwa na kuuzwa katika mwaka ni sawa na Kshs.64.70 kwa kila kilo moja ya majani mabichi.
Gharama ya utengenezaji iliongezeka katika mwaka na ilikuwa Kshs.77.46 kwa kila kilo moja ya chai iliyotengenezwa. Gharama wastani ya mwaka uliotangulia ilikuwa Kshs.68.59 na kwa hivyo tofauti ikawa Kshs 8.87, kwa wastani wa kila kilo moja ya chai iliyotengenezwa.Gharama ya utengenezaji imejumuishwa na ile ya malipo ya majani chai kwa mwezi ya Kshs 54.16 kwa kila kilo moja ya chai iliyotengenezwa yenye ilikua juu
ikilinganishwa na ile ya mwaka uliotangulia ya Kshs 49.85 kwa kila kilo moja ya chai iliyotengenezwa. Gharama ya utengenezaji katika mwaka ilikuwa sawa na Kshs 17.85 kwa kila kilo moja ya majani mabichi. Gharama zinginezo ni malipo ya wafanyi kazi Ksh. 4.96, mafuta Ksh. 6.65 na umeme Ksh 11.69. Mwaka uliyopita, malipo ya wafanyi kazi Ksh. 4.42 mafuta Ksh. 5.18 na umeme Ksh 9.13.
Kampuni iliweza kulipa malipo kwa wakulima ya Kshs.672,474,212 kwa majani chai ambayo iliyopokelewa Kiwandani. Malipo haya yako juu ya yale ya mwaka uliopita ya Kshs. 559,221,282. Kampuni iliweza kulipa malipo ya kwanza kwa Kshs 12.00 kutoka July 2011 mpaka March 2012 na ksh 14 kutoka April 2012 hadi Juni 2012 kwa kilo moja ya majani mabichi ambayo ni sawa na Kshs.54.16 kwa kila kilo moja ya chai iliyotengenezwa.
Baraza la Wakurugenzi lilipendekeza kulipa mgao wa asilimia 2.5 kwa mia kwa wanahisa wote waliokuwa katika kitabu cha wanahisa cha kampuni mnamo tarehe 30 Juni 2012. Jumla ya Kshs 2,320,041 zitalipwa
Mwaka wa fedha wa kampuni 2011/2012 ulikuwa bora zaidi ukilinganishwa na miaka ya awali tangu kuzinduliwa kwa kiwanda cha Iriaini mwaka wa 1981. Hii ilitokana na bei iliyoongezeka ya chai katika soko na ubandilishananji bora na hakika wa pesa za kingeni. Riba ya pesa zilizowekezwa ilikuwa dhabiti na ilituwezesha kulipa mgao wa juu wa mwisho wa mwaka.
 Katika mwaka tuliungana na wanabiashara Marks & Spencer kwa majaribu ya kuongeza dhamana chai yetu iliyopakiwa kiwandani tayari kwa matumizi kuuzwa kwa maduka zao Ulaya. Kilo 1,913.75 tayari zimeuzwa kwa shilingi 1,068,636/=. Hii ni sawa na shilingi 558.40 kwa kila kilo ya chai.Tunatarajia soko hili litaboresha mapato yetu kwa miaka ijayo haswa tukiuza kilo zaidi.
 Pia, tulipata msaada kutoka kwa washilika wetu wa kimaendeleo Africa Now wa gari aina ya Land Rover KBD 261G kutusaidia kusambaza chai iliyo ongezwa dhamana humu nchini na huduma zinginenzo.
 Tutaendelea kukuza miti yetu kibnafsi ya matumizi ya kuni ya kukausha chai kiwandani. Shamba Let. La kukondishwa la Muringato laendelea vyema kama matarajiwa. Vile vile, ukulima wa majaribu wa nyuki na matunda waendelea kunawili baada ya hali duni ya anga iliyotuadhili vibaya.
Katika mwaka huu kampuni ilinunua mtambo uliokamilika wa kutengeza chai. Mpango huu unaambatana na matarajio ya kubandilisha mitandao yetu kuwa ya kisasa ili kupunguza gharama za utengenezanji wa chai na kufikia lengo letu la kusiaga kilo milioni kumi na tano kila mwaka.
Tutaendelea kuboresha barabara na magari zetu ili kupunguza gharama ya ubebaji chai. Vile vile, Tutaendelea kulinda mipango ambayo tumehitimu ( ISO 9001:2008, ISO 22000:2005 ya usafi wa chakula udumishaji wa mazingira (Rainforest Alliance), UTZ –uzuli ndani na FLO CERT ya fairtrade ) na pia kuwapa motisha wafanyikazi na washilika wengineo wote.

Mazao ya mwaka kwa kila mche wa majani chai ilikuwa kilo 1.20. Hii ilikuwa chini ya matarajio ya kilo 2.50 kwa kila mche. Tunawahimiza wakulima wetu wote watie fola kwa ukulima wa chai ili kuboresha na kuongeza ongezeko la chai. Mradi wa ushirika wa viwanda vya Nyeri wa utengenezanji wa nguvu za umeme (Gura Hydro Power Co) uko katika kiwango cha kuanizishwa. Hii itapunguza zaidi gharama ya kawi . Mwisho, ili kiwanda chetu kiwe maarufu na chenye kushindana vipasavyo, lazima tutumie tecnología ya kisasa na tuzingatie matakwa yote ya soko.
Kwa niaba ya Baraza la Wakurugenzi, ningetaka kuwatolea shukrani wafanyi kazi wote wa Kampuni, wanahisa na wakulima wote waliopeleka majani mabichi ya chai katika Kampuni kwa kazi yao iliyowezesha Kampuni kufanikiwa katika mwaka tunaofikiria.

Corporate Social Responsibility

Iriaini Tea Factory recognizes that we have to do our business sharing the feelings and
aspirations of the people we interact with from local, national and international perspective. It
is in view of this that we attached a high significance to our corporate social responsibility.
We have been involved in the following community initiatives:
 Maintenance of the road network in the catchment.
 Offered internships for students.
 Sponsorship of students through the Directorate of Industrial training.
 Poverty eradication by facilitating training through Fair-trade and Sustainable Agriculture on bee keeping, fish, rabbit, goat, poultry and passion fruit farming.
 Raising education standards by donating trophies to schools within the catchment to compete per subject and funding construction of toilets among others.
 The factory has over the years been giving out tree seedlings both exotic and indigenous for free or at a subsidized price, with an annual production of over 100,000 seedlings annually.
 It also offers ready market for firewood (Exotic trees) with an annual consumption of about 15,000 cubic metres of firewood.
Iriaini is committed to conservation of environment in line with all national and international charters on all aspects of noise, pollution, effluent management so as to maintain both the flora and Fauna around us.