@BusinessDaily

Tea companies say logging ban to hit production

9 months ago, 12 Mar 18:31

By: Gerald Andae

Tea factories in Kenya face possible closure following a government ban on logging that has hit hundreds of factories that rely on firewood to run their processing machines. Firewood makes up 70 per cent of energy used in drying tea leaves instead of furnace oil and electricity which is expensive. The government issued a blanket ban on logging for a period of three months aimed at stopping the rampant destruction of forests and the near depletion of natural ecosystems. East African Tea Traders Association (Eatta) wants tea factories to be exempted from the ban as it is likely to hit production. “Unless the ban is suspended most tea producers will have to close down as the business model would not be able to sustain the costs ,” said Edward Mudibo, Eatta managing director. “Tea production uses up to 70 per cent of wood energy. This therefore means the tea industry which entirely relies on firewood to generate heat for tea drying will be adversely affected,” he added. Mr Mudibo said the tea industry is in the forefront of forest conservation activities like propagating tree seedlings, mainly eucalyptus, which are then released to the local communities for planting exotic trees for wood fuel and indigenous trees for conservation. Most of the tea companies rely on firewood from own forest plantations to meet energy requirements for tea processing and have partnerships with key environment development agencies. “The blanket ban shall have adverse effects on the tea industry, Kenya’s leading foreign exchange earner and major employer and this has to be protected,” he added. Tea is the largest foreign exchange earner in Kenya after remittances contributing over Sh114 billion in 2013, Sh101 billion in 2014 Sh124 billion in 2015, Sh120.6 billion in 2016 and Sh129 billion in 2017.
Read More


Category: business opinion news markets corporate economy lifestyle

Suggested

23 minutes
@BusinessDaily - By: Doreen Wainainah
BAS INTERVIEW: Self Reflection Through Rap

Doreen Wainainah caught up with Hip Hop artiste Bas before his maiden African performance. ...

Category: business news
44 minutes
@BusinessDaily - By: George Omondi
MPs foreign travel spend rises five times

Move defies calls by the Treasury and President Uhuru Kenyatta for cuts on non-essential spending ...

Category: business news opinion
1 hour ago
@BusinessDaily - By: Patrick Alushula
Ailing Uchumi to begin audit of accounts seven months late

The Nairobi Securities Exchange (NSE)-traded firm was supposed to have released the results by October ...

Category: business news
Now
@BusinessDaily - By: Charles Mwaniki
Britam takes Sh4bn hit from HF share plunge

Steady share price erosion forces financial services firm to write off investment four years after buy-in ...

Category: business news
11 hours ago, 22:46
@TheStar - By: Abel Muhatia @muh ...
Uchumi gets new team in revival plan

Struggling retailer Uchumi Supermarkets yesterday announced the formation of a new committee to help its restructuring process.The team to consist of external legal, accounting and retail consultants ...

Category: topnews news business
16 hours ago, 17:47
@DailyNation - By: Bonface Otieno
Shoprite takes Nakumatt space at Westgate Mall

South African retailer Shoprite has taken over space which was vacated by Nakumatt supermarkets at Westgate Mall in Nairobi, becoming the anchor tenant at the shopping complex. ...

Category: topnews news business

@BusinessDaily

Tea companies say logging ban to hit production

9 months ago, 12 Mar 18:31

By: Gerald Andae
Tea factories in Kenya face possible closure following a government ban on logging that has hit hundreds of factories that rely on firewood to run their processing machines. Firewood makes up 70 per cent of energy used in drying tea leaves instead of furnace oil and electricity which is expensive. The government issued a blanket ban on logging for a period of three months aimed at stopping the rampant destruction of forests and the near depletion of natural ecosystems. East African Tea Traders Association (Eatta) wants tea factories to be exempted from the ban as it is likely to hit production. “Unless the ban is suspended most tea producers will have to close down as the business model would not be able to sustain the costs ,” said Edward Mudibo, Eatta managing director. “Tea production uses up to 70 per cent of wood energy. This therefore means the tea industry which entirely relies on firewood to generate heat for tea drying will be adversely affected,” he added. Mr Mudibo said the tea industry is in the forefront of forest conservation activities like propagating tree seedlings, mainly eucalyptus, which are then released to the local communities for planting exotic trees for wood fuel and indigenous trees for conservation. Most of the tea companies rely on firewood from own forest plantations to meet energy requirements for tea processing and have partnerships with key environment development agencies. “The blanket ban shall have adverse effects on the tea industry, Kenya’s leading foreign exchange earner and major employer and this has to be protected,” he added. Tea is the largest foreign exchange earner in Kenya after remittances contributing over Sh114 billion in 2013, Sh101 billion in 2014 Sh124 billion in 2015, Sh120.6 billion in 2016 and Sh129 billion in 2017.
Read More

Category: business opinion news markets corporate economy lifestyle

Suggested

23 minutes
@BusinessDaily - By: Doreen Wainainah
BAS INTERVIEW: Self Reflection Through Rap

Doreen Wainainah caught up with Hip Hop artiste Bas before his maiden African performance. ...

Category: business news
44 minutes
@BusinessDaily - By: George Omondi
MPs foreign travel spend rises five times

Move defies calls by the Treasury and President Uhuru Kenyatta for cuts on non-essential spending ...

Category: business news opinion
1 hour ago
@BusinessDaily - By: Patrick Alushula
Ailing Uchumi to begin audit of accounts seven months late

The Nairobi Securities Exchange (NSE)-traded firm was supposed to have released the results by October ...

Category: business news
Now
@BusinessDaily - By: Charles Mwaniki
Britam takes Sh4bn hit from HF share plunge

Steady share price erosion forces financial services firm to write off investment four years after buy-in ...

Category: business news
11 hours ago, 22:46
@TheStar - By: Abel Muhatia @muh ...
Uchumi gets new team in revival plan

Struggling retailer Uchumi Supermarkets yesterday announced the formation of a new committee to help its restructuring process.The team to consist of external legal, accounting and retail consultants ...

Category: topnews news business
16 hours ago, 17:47
@DailyNation - By: Bonface Otieno
Shoprite takes Nakumatt space at Westgate Mall

South African retailer Shoprite has taken over space which was vacated by Nakumatt supermarkets at Westgate Mall in Nairobi, becoming the anchor tenant at the shopping complex. ...

Category: topnews news business
Our App