Chebut Tea Factory Company Limited



The Factory is situated in The North oft Valley, Nandi-North District Kapsabet Division, Kapsabet Location, Kapsabet sub-location, Emgwen Consistuency.

Chebut catchment transcends three District namely Nandi North, Nandi South and parts of Uasin Gishu District.

The Factory is located in Kapsabet town, along Kapsabet- Kisumu road, approximately 300kms West of Nairobi and 45 from Eldoret town at an altitude of 2000m above sea level.

The factory can be accessed from Eldoret, Kisumu and Kericho within a short time since it is well served with all weather roads, with Eldoret and Kisumu Airports only 45 minutes and one and half hours away respectively one can get to Chebut from Nairobi within two hours by Air- flight.

Geographical features

Within Chebut Catchment is the famous River Yala that is located to the South West. While driving from Nandi Hills towards Kapsabet one can enjoy beautiful scenery of lush green tea fields and the undulating Nandi Hills, with Chebut Tea Factory being located at the foot of the same.

In the South of Chebut Catchment are located the Famous Nandi Escarpment that separate the Kano Plains from the highland.


Chebut enjoys cool climate for most part of the year apart from January, February and March. It receives above average rainfall annually with the temperature ranging 18º c to 25º c.

The only equatorial rain forest in Kakamega forest, extending from the Cameroon-Congo basin is only hour drive from the Factory.


The Factory is headed by Factory Unit Manager, who overseas all the operations of the Company covering Factory operations, Green Tea Collection Logistics, Extension services, information and communication Technology and accounting. Below the Factory Unit Manager are line managers as per the Company Organization structure chart attached.

Added information

A Satellite factory located at Kaptumo has been put upto relieve the Factory the current congestion. The new Unit will assist factory improve its service delivery to the farmers.

The Factory uses firewood fuel as source of fuel to fire its steam boilers.

As a corporate social responsibility it sells at cost the fast growing Eucalyptus grandis spp seedlings to the growers and other interested farmers.It also propagates seedlings of other trees to help in sustaining enviroment

International Certifications

ISO  The factory has been recommended for certification for meeting the ISO 9001/2001  requirements. The factory is customer focused and committed to continually improving its process.

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 lower than last year. 21,665,592 kilogrammes of Green Leaf were delivered for processing at the company's factories. Out of this throughput,4,979,399 kilogrammes of tea was made. These throughput and output were lower than last year's levels of 23,082,452 kgs and 5,405,689 kgs by 1,416,860 kgs and 426,290 kgs respectively. This achievement was at a conversion factor of 22.98% which is equivalent to 4.35 Kg of Green Leaf to make one kilogram of Made Tea.
There was an increase in tea prices during the year. The average price realized per kilogram of made tea sold was Kshs. 266.86. This compares favourably with the price of Ksh. 237.11 in 2011.The prices therefore increased by Kshs. 29.75 per kilogram of sold tea. This year's price of one kilogram of made tea sold is equivalent to Kshs. 129.41 per kg of green leaf.
The manufacturing costs increased during the year as compared to last year. The total manufacturing cost for the year was Ksh.214.27 for every kilogramme of made tea against the total manufacturing cost of Kshs. 207.09 per kg last year. There was an increase in the manufacturing cost by Kshs. 7.18 per kilogramme. This manufacturing cost includes monthly green leaf payment at Kshs. 54.25 per kg of made tea for the year
which is higher than Kshs 51.24 per kg last year. The total manufacturing costs also includes second payment to the farmers which is equivalent to 132.59 per kg of made tea and other manufacturing costs was shs.27.43 per kg of made tea. This year's manufacturing cost was equivalent to Ksh.49.25 per kilogram of green Leaf.
The company was able to make a payment to the farmers of kshs.270, 120,294 as initial and kshs.660, 174,555 as final payment for the green leaf delivered during the period under consideration. Total payments amounted to 930,294,849 which is lower than last years’ payment of kshs.946, 986,735.The company managed to pay an initial payment of kshs.12.47 per kg of green leaf. This is equivalent to ksh.54.25 per kg of made tea and final payment of ksh.30.50 per kg of green leaf which is equivalent to ksh.132.68 per kg of made tea.
The Board of Directors recommend payment of dividends of Kshs.4,966,239 to all class “B” shareholders appearing in the Company’s share register as at 30th June 2012,which represent 2.5% of the issued class” B” shares..
Contribution of Chebut Tea Factory to CHEMUKA Power Company to date is Ksh 57,054,591.80 which upon investment has earned an interest of Ksh 611,873.16, giving a total portfolio of Ksh.57, 696,464.96. Initial works on mapping and topographical surveys are on-going. Once the company commences power generation Chebut will make  a lot of saving on electricity costs which will eventually translate to improved returns to
our shareholders.
In an effort to position our factories in the ever changing global consumer requirements, Chebut/Kaptumo have been earmarked for FairTrade Certification. This certification once attained alongside others will improve our market share in assuring our consumers of our product quality besides aspects of environmental conservation and ethical practices both at the farm and factory level.
Further, the factories continue maintaining the ISO Certification and RA Certification status and were recertified for ISO 9001/2008 (Quality Management Systems) and recommended for continued Certification on ISO 22000:2005 (Food Safety Management Systems). These are key achievements that assure our customers of the quality and safety of our Tea products.
Chebut/Kaptumo for the first time participated in Eldoret ASK National Show and emerged the best in the Local Manufacturer stand while scooping second best positions in Exhibiting Agricultural and Earth moving equipment and the application of ICT in agriculture and rural Development. This was a milestone in showcasing the potential of Chebut/ Kaptumo Tea Factory Company in empowering shareholders’ value and driving
the small holder tea subsector in attainment of Vision 2030.
During the period under review the company continued to experience reduced crop intake due to competition from other players in the sector, rampant tea hawking and unfavourable weather. High and unstable fuel prices in the market and ever rising labour costs have also remained a major challenge to our operations.
However we have embarked on serious campaigns and adoption of good crop husbandry practices amongst our farmers so as to increase crop production. Once again we urge our farmers to deliver more leaf and to pluck quality leaf to take advantage of economies of scale and the continued good market prices. We have also embarked on sensitization of farmers on the legal and economic effects of tea hawking. To mitigate on the effects of high cost of wood fuel, we have acquired 67 acres of land all of which is under eucalyptus saligna trees. We are also in the process of acquiring more land for more firewood development. On the increased cost of labour we have continued to automate our production processes.
The factory continued to renew key machinery in the factory in order to enhance efficiency and maintain product quality. More leaf carriers bought during the period under review, have tremendously improved our efficiency in leaf collection from the buying centres. Apart from the existing tree nursery, a Tea Nursery of approximately 500,000 seedlings has been established.
On behalf of the Board of Directors, I wish to sincerely thank the staff of the company, shareholders and growers for support in their various capacities in realizing the success of the company during the year under review.

Ningetaka kuwasilisha ripoti kuhusu vile kampuni ilivyofanya katika mwaka uliomalizika mnamo Juni 30. 2012
Uzalishaji wa mazao kwa mwaka ulikuwa chini kuliko mwaka jana.Kilo 21,665,592 ya majani chai zilipelekwa kutengenezwa katika viwanda vya kampuni. Kutokana na kiasi hiki cha chai, kilo 4,979,399 ya chai ilitengezwa. Kiasi hiki kilikuwa chini ya ile ya mwaka jana ya kilo 23,082,452 ya majani mabichi ya chai ,na kilo 5,405,689 ya chai iliyotengezwa na tofauti ikawa kilo 1,416,860 ya majani mabichi na kilo 426,290 ya majani iliyotengenezwa. Mafanikio hayo ilikuwa sababu ya ongofu (kibadilishio) ya  22.98% ambayo ni sawa na kilo 4.35 ya majani mabichi kutengeneza kilo moja ya chai.
Kulikuwa na ongezeko la bei ya chai katika mwaka huu. Bei ya wastani ya chai iliyopatikana kwa kila kilo moja ya chai iliyouzwa ilikuwa shilingi 266.86. Hii ilikuwa juu ikilinganishwa na bei ya shilingi 237.11 wa mwaka wa 2011.Kwa hivyo, bei ya chai iliongezeka kwa shilingi 29.75 kwa kila kilo ya chai iliyouzwa. Bei ya mwaka huu wa kilo moja ya chai ni sawa na shilingi 129.41 kwa kila kilo moja ya majani mabichi.
Gharama ya utengenezaji ilipanda katika mwaka ikilinganishwa na mwaka jana. Jumla ya gharama kwa mwaka ilikuwa shilingi 214.27 kwa kila kilo moja ya chai iliyotengenezwa dhidi ya gharama ya jumla ya utengenezaji wa shilingi 207.09 kwa kilo, mwaka jana. Kulikuwa na kuongezeka kwa gharama ya utengenezaji kwa shilingi 7.18 kwa kilo.Gharama hii ya utengenezaji ni pamoja na malipo ya kila mwezi ya majani chai ya shilingi 54.25 kwa kilo moja ya chai iliyotengenezwa ambayo ni ya juu kidogo kuliko shilingi 51.24 ya mwaka jana,pia gharama hii imejumuisha malipo ya pili kwa mkulima ya shilingi 132.59 kwa kila kilo ya chai iliyotengenezwa na gharama zingine za utengenezaji zilikuwa shilingi 27.43 kwa kila kilo ya chai iliyotengenezwa. Gharama ya utengenezaji katika mwaka huu ulikuwa sawa na shilingi 49.25 kwa kila kilo moja ya majani mabichi. 
Kampuni iliweza kulipa malipo ya kwanza kwa wakulima ya shilingi 270,120,294 na shilingi 660,174,555 kama malipo ya pili kwa majani chai iliyopelekwa kiwandani.Jumla ya malipo ilikuwa shilingi 930,294,849 ambayo ni chini ya malipo ya mwaka uliopita ya shilingi 946,986,735 . Kwa hivyo , kampuni ikawa imelipa malipo ya kwanza ya shilingi 12.47 kwa kilo ya majani mabichi ambayo ni sawa na shilingi 54.25 kwa kila kilo ya chai iliyotengenezwa na malipo ya pili ya shilingi 30.50 kwa kila kilo moja ya majani chai ambayo ni sawa na shilingi 132.68 kwa kila kilo moja ya chai iliyotengenezwa.
Baraza la Wakurugenzi lilipendekeza mgao wa shilingi 4,966,239 kwa wana hisa wa kampuni ambayo ni asilimia 2.5 ya hisa ya kitengo cha “B”.
Mchango wa Kiwanda ya chai ya Chebut kwa Kampuni ya CHEMUKA kufikia mwisho wa mwaka 30 Juni 2012, ni shilingi 57,054,591.80 ambayo juu ya uwekezaji ikachuma riba ya shilingi 611,873.16 jumla ikiwa shilingi 57, 696,464.96. Matendo ya awali juu ya ramani na utafiti wa mandhari unaendelea. Mara kampuni utakapoanza kuzalisha nguvu za umeme, Chebut itaweza kuokoa gharama iliyo juu ya umeme ambayo hatimaye
italeta kuboreshwa kwa faida kwa wanahisa wetu.
Katika jitihada za kujiweka katika mahitaji na mabadiliko ya wanunuzi kimataifa, kampuni hii imetengwa kwa ajili ya vyeti vya Fairtrade. Hii vyeti yakipatikana sambamba na vingine,itachangia pakubwa kwa kuboresha soko yetu na kuhakikishia wateja wetu juu ya ubora wa bidhaa zetu, na hata masuala yetu ya uhifadhi wa mazingira na mazoea ya kimaadili wote katika shamba hadi kiwandani. .
Viwanda vyote viliendelea kudumisha hali yao ya ISO Certification na RA Certification na wakaweza kutuzwa vyeti hivyo mara tena vya ISO 9001/2008 (QMS) na kupendekezwa kuendeleza utuzaji wa cheti cha ISO 22000 2005 (Food Safety Management Systems) . Haya ni mafanikio muhimu yanayowahakikishia wateja wa bidhaa zetu juu ya ubora na usalama wa bidhaa zetu.
Chebut / Kaptumo kwa mara ya kwanza walishiriki katika Maonyesho ya Kilimo ya Kitaifa ya Eldoret na kuweza kuibuka nafasi ya kwanza katika upande wa utengenezaji.Fauka ya hayo,waliweza kunyakua nafasi ya pili bora katika kuonyesha vifaa vya Kilimo na matumizi ya teknologia ya komputa katika kilimo na Maendeleo vijijini. Hii ilikuwa hatua kubwa kuonyesha uwezo wa Kampuni ya Chebut/Kaptumo kwa kuinua thamani ya
wanahisa na kufikia maono 2030.
Katika kipindi hiki Kampuni iliendelea kupata upungufu wa mazao kutokana na ushindani kutoka kwa kampuni wengine katika sekta, uchuuzi wa chai na mabadiliko ya hali ya hewa isiyotarajiwa. Kupanda kwa bei za mafuta katika soko na gharama za wafanyakazi, pia ni changamoto kubwa kwa shughuli zetu. Hata hivyo tumependekeza utekelezaji nzuri ya mazao miongoni mwa wakulima wetu ili kuongeza uzalishaji.Kwa mara nyingine tena, tunawaomba wakulima wetu walete mazao mengi na kuchuma majani yaliyo bora ili tuweze kujinufaisha kwa kupunguza gharama na kufaidika kwa bei zilizo bora katika soko. Tumechukua jukumu katika uhamasishaji wa wakulima juu ya madhara ya kisheria na ya kiuchumi ya kuuza chai yao kwa wachuuzi wa chai. Ili kuepukana na madhara ya gharama ya juu ya kuni, tumenunua ekari 67 za shamba ambayo yote kwa sasa imepandwa miti ya mikaratusi aina ya saligna. Tuko na mpango wa kununua shamba zaidi kwa ajili ya kuendeleza shughuli hii ya
kupanda miti. Katika madhumuni ya kuzuia gharama ya kazi kupanda, tumeendelea kuongeza matumizi ya mitambo inayojiendesha kwa utendaji wa kazi.
Kiwanda imenunua mashine muhimu upya ili kudumisha ufanisi na ubora wa bidhaa. Lori za kubeba majani mabichi zilinunuliwa katika mwaka uliopita, na kwa kiasi kikubwa kuboresha ufanisi katika ukusanyaji wa majani mabichi kutoka vituo vya kununua. Mbali na kitalu zilizopo mti, kampuni pia imeanzisha kitalu ya miche ya chai ambayo itaotesha miche takriban 500,000.
Kampuni ilipanda miche 4,000 ya miti katika eneo la kando mwa mto ili kulinda mto ambayo inatumiwa na Chebut na jamii ya karibu. Tuliweza pia kuchangia sare ya michezo kwa wanakandanda wa kilabu cha Kapsabet All stars. Viwanda vyetu viwili vinaendelea kupeana nafasi ya kujipatia ujuzi mbalimbali kwa wanafunzi kutoka vyuo mbalimbali.Hili liliifanya kampuni kupewa tuzo la kampuni inayoongoza katika ufadhli wa nafasi hii ya Technical and Vocational Education Training (TVET) katika Sehemu ya juu ya mkoa wa Bonde la Ufa. Pia kuna nafasi chache za ufadhili kupitia kwa mpango wa Directorate of Industrial training (DIT). 
Kwa niaba ya Baraza la Wakurugenzi, napenda kutoa shukrani kwa wafanyikazi wote wa kampuni, wanahisa na wakulima wote wa kampuni kwa kazi yao iliyowezesha Kampuni kufanikiwa katika mwaka tunaoufiria.

Corporate Social Responsibility


The company planted 4,000 tree seedlings along the immediate water catchment area to protect the river which serves Chebut and the immediate community. We also donated sports uniform to Kapsabet All Stars Football Club. Our two factories continue to offer industrial attachment to many students from various colleges as well as limited sponsorship through the Directorate of Industrial Training (DIT) programmes. This  earned the company an award as a leading company in absorbing TVET (Technical and Vocational Education Training) attachees in the North Rift Region.