(a) It is situated at Bomet District
(b) (i) latitude : 1.7 0 latitude
(ii) longitude : 35.8 longitude
(c) distance from Nairobi : about 500km South East of Nairobi
(a) when it was built : commissioned in 1976 .
(b) catchments & number of growers :Six Zones With 24,984 growers
(c) clones of tea grown: (i) Assum variety;- 31/8,15/10,61,61/60,6/8
(ii) China Ver.51 dark,TN14/3,303/577
(d) community based projects : Diary, Farming:-subsidiary & commercially
(a) major highway :Litein Bomet & Sotik-Bomet
(b) feeder roads : (i) kiplokyi-kipleljin
(v) Kaptebenwet- Chebango
Geographical features :
(a) mountains :
(b) ranges :
(d) rivers :.
(a) temperature : between 12.7 oC – 28 oC:
(b) rainfall 1500mm-2500mm annually:
(d) altitude : 1500 m – 2250 m A.S.L
(e) soils : 2m depth of red loamy soil
Kapkoros Tea Factory Company Limited. was commissioned in 1976 under the management of KTDA.
The first manager was Mr. F. Paterson (1976-1977) and was succeeded by Mr. R. D. Cheruiyot (1977-1979) who served as Operations Director in KTDA H/O later.
It is situated at longitude 35.8 0 and latitude 1.70
The factory is situated in Sibaiyan Location, Bomet District in Rift Valley Province. It is under region 5 of KTDA managed Tea Factories.
It is about 500km South East of Nairobi.
Kapkoros catchment serves 11,299 registered growers. This figure excludes 13,685 registered growers (from Tirgaga and Olenguruone) under Kapkoros.
The area under tea is 2,956 Hectares with 26,012,366 bushes. Average Production per bush is 0.96 kg per year. This translate to 24,971.52 Kgs per year.
A. TELEPHONE: 0202048854
C. ADRESS : P.O.BOX 125 LITEIN
4. CLIMATIC CONDITIONS
Optimum condition is about 1500mm-2500mm annually with good soil
Optimum range is between 12.7 oC – 28 oC
1500 m – 2250 m above the sea level i.e about (4500ft – 6750ft).
Is of good drainage
2m depth of red loamy soil
P.h measuring 4 - 6.5.
5. COMMON CLONES IN KAPKOROS
Both the china and Assum variety of teas are available in this expansive catchment.
-Some of the clones under the Assum variety found in the Kapkoros catchment include:-
a) – 51- dark
b) – TN 14/3
c) – 303/577
NB.Maximum Yield / Bush / Year-3kg
The main challenges which face Kapkoros as a catchment are;-
Firewood – This being an alternative cheap source of energy is threatened as trees become scarce.
Space: Kapkoros is set on a very small ground leading to;
i) Congestion of machinery layout
ii) Congested space for firewood
iii) Lack of solid waste disposal.
Poor road network especially during rainy seasons which make most feeder roads impassable.
Despite the above challenges Kapkoros has continued to be among the best K.T.D.A Tea Factories performers.
On many occasions it has lead the pack of factories in the west. This includes the just concluded financial year 2007/2008 which paid the best bonus West of Rift at Kshs. 13.50.
OUR VISION AND MISSION.
Our vision is to be the best performing factory among those managed by KTDA.
Kapkoros is committed to effective Management Services to the smallholder tea sub-sector in the production, processing and marketing of high quality tea to the benefit of farmers and other stakeholders.
Our key goal and objective is to meet and exceed our customers’ expectation in providing quality products and associated services.
We shall endeavour to continually maintain and improve efficient and effective Quality Management System meeting both the regulatory and ISO requirement.
Kapkoros Tea Factory is ISO 9001:2000 certified .
CHAIRMAN’S REPORT FOR THE YEAR ENDED 30 JUNE 2012
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 that of previous year. 38,906,242 kilogram of Green Leaf was delivered for processing at the company's factory. Out of this throughput, 8,998,403 kilograms of made Tea was made. This throughput and output were lower than last year's levels of 38,972,203 kilogram’s and 9,669,505 Kilogram by 65,961 kgs and 671,102 kgs respectively. This was done at a conversion factor of 23.13 % which is equivalent to 4.32 Kg of Green Leaf to make one kilograms of Made Tea. We do expect tea production to continue going up. The projected increase in crop production dictates that we plan for immediate expansion of the factory.
Olenguruone catchment delivered 5,927,368 kg to Kiptagich Tea factory bringing a total production for the entire Company to 44,833,610kgs.
There was a marginal increase in tea prices during the year. The average price realized per kilograms of made tea sold was Kshs.263.76. This compares favorably with the price of Ksh. 238.60 in 2011.The prices therefore increased by kshs.25.16 per kg of sold tea. This year’s price of one kg of made tea is equivalent to Kshs.61.06 per kg of green leaf.
The manufacturing costs increased during the year. The average manufacturing cost for the year was Ksh.227.25 for every kilograms of made tea against the average manufacturing cost of Kshs.185.45 per kg for the previous year. There was an increase in the manufacturing cost by Kshs.41.80 per kilograms. This manufacturing cost includes monthly green leaf payment at kshs.53.20 per kg of made tea for the year which is higher than kshs.42.66 per kg for the previous year. This year's manufacturing cost was equivalent to Ksh.52.60 per kilograms of green Leaf as compared to previous year when the cost averaged at 46.01.
GREENLEAF PAYMENT AND DIVIDENDS:
The company was able to make a payment to the farmers of kshs.1,785,539,870 for Greenleaf delivered.
This payment is lower than last year's payment of kshs.1, 846,111,617. This includes an advance of first payment of Kshs.12.00 and kshs 14.00 per kg of Greenleaf delivered, which is equivalent to Kshs.48.37 per kg of made tea.
The Board of the company recommends payment of 2.5% dividends to class “B” shareholders appearing in the company’s share register as at 30th June 2012.
I am happy that the company has once again registered an improvement in the revenues generated from all aspects of its operation despite a reduction in crop production.In addition, I also wish to remind you that this year would have been an even better year were it not for escalating costs in production. Electricity, fuel and labor posed the biggest challenge. It is however worth noting that our commitment to mitigate increasing labor cost by modernizing our various operations at Kapkoros particularly through automation remains intact and plans are at advance stage .The company has also invested in its commitment to start its own mini Hydro-power generation plant so as to check the adverse effects of increasing cost of power. This commitment has been affirmed as the company has now set aside some resources towards this noble course and has also established partnership with companies with the similar thinking. As a strategy to become self-reliant in energy supply we have also acquired about
95 additional acres of land for firewood which is the main source of fuel. The Expansion of withering section and additional new production line at Tirgaga tea Factory has been completed and expansions of the production floor and automation of production process at Kapkoros factory is in progress in order to cope with ever increasing crop production and reduce on production costs. Also the company has embarked in the process of construction two new satellites in addition to Olenguruone project which expected to start its processing early next year.
VOTE OF THANKS
On behalf of the Board of Directors I wish to hereby express my sincere appreciation to the Shareholders,
management and staff of the company for their good work which contributed to the success of the Company
during the year under review.
RIPOTI YA MWENYEKITI YA MWAKA ULIYOMALIZIKA MNAMO TAREHE 30 JUNI 2012
Ningetaka kuwatolea ripoti kuhusu vile Kampuni ilivyofanya katika mwaka ulioishia tarehe 30 Juni,2012.
MAVUNO YA CHAI
Mavuno ya Chai katika mwaka yalikuwa chini ya yale ya mwaka uliotangulia. Kilo 38,906,242 za majani chai zilipelekwa kutengenezwa katika kiwanda cha Kampuni. Kutokana na kiasi hiki cha chai, kilo 8,998,403 za chai iliyotengenezwa zilipatikana. Kiasi hiki kilikuwa chini ya kile cha mwaka uliotangulia ambacho kilikuwa kilo 38,972,203 za majani mabichi ya chai na kilo 9,669,505 za chai iliyotengenezwa na tofauti ilikuwa kilo 65,961 za majani mabichi na kilo 671,102 za chai iliyotengenezwa. Mapato haya kwa kibadilisho cha 23.13 kwa mia ni sawa na kilo 4.32 za majani mabichi ambayo yanatoa kilo moja iliyotengenezwa.
Olenguruone ilipeleka kilo 5,927,368 ya majani mabichi kwenye kiwanda cha Kiptagich hivyo kuleta jumla ya kilo 44,833,610 iliyozalishwa katika Kampuni.
BEI YA CHAI
Bei ya chai ilipanda katika mwaka. Bei wastani ya chai iliyopatikana kwa kila kilo moja ya chai iliyouzwa ilikuwa shilingi 263.76. Bei hii ilikuwa juu ikilinganishwa na bei ya mwaka uliotangulia wa shilingi 238.60 Kwa hivyo ongezeko likawa shilingi 25.16 kwa kila kilo moja ya chai iliyouzwa ikilinganishwa na mwaka uliotangulia. Bei ya chai iliyotengenezwa na kuuzwa katika mwaka ni sawa na shilingi.61.06 kwa kila kilo
moja ya majani mabichi.
GHARAMA YA UTENGENEZAJI
Gharama ya utengenezaji ilipanda katika mwaka.Gharama wastani ya utengenezaji katika mwaka ilikuwa shilingi 227.25 kwa kila kilo moja ya chai iliyotengenezwa tofauti na shilingi185.45 ya mwaka iliyopita.Ongezeko la gharama likawa shilingi 41.8 kwa kila kilo moja ya chai iliyotengenezwa.Gharama imejumuisha malipo ya majani mabichi ya kila mwezi wa shilingi 53.20 kwa kila kilo hii ikiwa juu ya shilingi 42.66 kwa kila kilo moja ya mwaka uliopita. Gharama ya utengenezaji katika mwaka ni sawa na shilingi 52.60 kwa kila kilo moja ya majani mabichi ikilinganishwa na shilingi 46.01 kwa kila kilo moja ya mwaka uliopita.
MALIPO YA MAJANI CHAI NA MGAO
Kampuni iliweza kulipa malipo ya kwanza ya shilingi.1,785,539,870 ya majani chai ambayo yalipelekwa Kiwandani.Malipo haya yakawa juu ya yale ya mwaka uliopita ya shilingi 1,846,111,617.Kampuni iliweza kulipa malipo ya kwanza ya shilingi. 12.00 na 14.00 kwa kilo moja ya majani mabichi iliyopokelewa kiwandani ambayo ni sawa na shilingi.48.37 kwa kila kilo moja ya chai iliyotengenezwa.
Baraza la Wakurugenzi wa Kampuni wanapendekeza mgao wa asilimia mbili nukta tano (2.5%) kwa wenye hisa wote wa kitengo cha “B” wanaopatikana katika kijitabu cha hisa cha kampuni manamo tarehe 30 Juni 2012.
MATARAJIO YA BAADAYE
Ninafuraha kuwajulisha ya kwamba, kwa mara nyingine kampuni imeweza kujiendeleza na kuinua mapato kutokana na mauzo ya chai na shughuli nyingine.
Mbali na hayo ni muhimu niwajulishe ya kwamba matokeo hayo yangekuwa bora hata zaidi kama kampuni haungesajili ongezeko la gharama . Kampuni yetu inaendlea kukumbwa na changamtoto zinazohusiano na gharama hasa ile ya nguvu za umeme,bei ya mafuta na ile ya wafanyikazi . Hata hivyo msimamo wetu katika kuendelea kukabiliana na ongezeko la gharama bado uu thabiti.Tutazidi kuwekeza katika mashini za kisasa katika kiwanda cha Kapkoros sizizohitaji kuajiriwa kwa wafanyikazi wengi. Ili kukakabiliana na gharama ya nguvu za umeme, kampuni imesimamia uamuzi wake wa hapo awali wa kuwekeza katika mradi wa utoaji wa nguvu za umeme kwa kutumia nguvu zanishati. Ili kuhakikisha kufaulu kwa mradi huu, kampuni imetenga kiasi cha raslimali ya kufadhili mpango huu, na kujumuishwa kwenye mkataba na wafadhili wenye maono huo ili tuwekeze kwa ushirikiano.Ili tuweze kujitegemea katika nguvu za utengenezaji,kampuni imeweza kununua karibu ekari 95 kwa ajili ya upanzi wa miti itakayotumika kama kuni.
Kuongezwa kwa eneo la kubarizia majani chai na laini zingine za uzalishaji katika kiwanda cha Tirgaga umekamilka.Pia kuongezwa kwa eneo la uzalishaji na kuimarishwa kwa kiteknolojia za kisasa za uzalishaji katika kiwanda cha Kapkoros unaendelea ambapo utasaidia kukabiliana na ongezeko la gharama za uzalishaji kila uchao.Kampuni pia inajielekeza katika harakati za ujenzi wa viwanda viwili vipya mbali na ile ya Olenguruone ambacho kinatarajiwa kuanza kufanya kazi mwaka ujao.
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 mwaka huu.
JUSTUS K. YEGON (CHAIRMAN)