Greening the Kenya Tea Industry and

the Road to Durban - COP 17

1 1

Background of KTDA and tea production in Kenya

Currently KTDA is the largest tea management agency in the world

managing 65 tea factories in the smallholder tea sub-sector in Kenya - and

controlling 60% of the Ksh 100 billion annual tea industry budget

Tea industry growth in Kenya:

- Tea introduced to Kenya in Limuru in 1903.

- Commercial farming started in 1924.

- Smallholder tea cultivation started in 1950’s.

- First small holder tea factory established in Nyeri in 1957 (Ragati TF).

- Special Crops Development Authority established in 1960.

- KTDA (Authority) was formed in 1964 as a Government parastatal to

foster development of tea among smallholders tea growers in Kenya.

2 2

World tea production in 2010

China

33.7%

India

23.8%

Kenya

9.8%

Sri lanka

8.1%

Vietnam

3.9%

Turkey

3.6%

Indonesia

3.2%

Others

2.4%

Japan

2.3%

Argentina

2.5%

Bagladesh

1.5%

Malawi

1.3%Uganda

1.4%

Tanzania

0.8%

Rwanda

0.5% Myanmar

0.5% Iran

0.4%

Taiwan

0.4%

3 3

Percentage expenditure of the Ksh 60 billion annual budget Note: Around Ksh 3 billion spend annually on both furnace and electricity

2011

75%

2%

4%

1%

1%

2%

4%

2%

4%

1%

2%

2% labour

furnace

electricity

fuel

Leaf coll

Packing

Admin

Mgt fees

Financial

Depreciation

Selling exps

G/Leaf paymt

4 4

Percentage world tea exports in 2010

Others

1%Other Africa

7%

Argentina

6%

Malawi

3%

Kenya

25%

Indonesia

5%

Vietnam

6%

Other Asia

1%

China

18%

Sri Lanka

20%

India

11%

India

Sri Lanka

China

Indonesia

Vietnam

Other Asia

Kenya

Malawi

Other Africa

Argentina

Others

5 5

Kenya tea export destinations - 2010

INDIA

1%

YEMEN

3%

POLAND

1%

IRELAND

1%

IRAN

1%

DJIBOUTI

1%

KAZAKHSTAN

3%

U.A.E

4%RUSSIA

4%SUDAN

5%

OTHERS

5%

PAKISTAN

22%

EGYPT

21%

UK

14%

AFGHANISTAN

14%

6 6

Grid power and carbon emissions… Note - more than 3yrs old

0.94 0.91 0.91

0.87 0.83 0.81

0.78

0.57 0.56 0.53 0.51

0.47 0.47

0.35 0.34

0.26

0.21

0.09 0.07 0.06 0.01 0.01 0 0 0

Grid Emission Factors (kgCO2/kWh, tCO2/MWh)

7 7

How carbon projects generates carbon credits

Gre

en

ho

use g

as e

mis

sio

ns

Historical Trend

Project start

Carbon credits (CERs)

represent the difference

between the baseline and

actual emissions

Time

8 8

Potential carbon projects

Wind power Solar Run-of-river hydro Transport

Forestry Landfill

Sewage / wastewater

Agro-forestry

9

9

Carbon project eligible GHGs

Green House Gas Global Warming Potential

Carbon Dioxide (CO2)

1

Methane (CH4)

21

Nitrous Oxide (N2O)

310

Perfluorocarbons (PFCs)

9,200

Hydrofluorocarbons (HFCs)

11,700

Sulphur Hexafluoride (SF6)

23,900

10 10

The role of the Clean Development Mechanism (CDM)

Developed

countries can

reduce emissions

anywhere in the

world

They can count

these reductions

towards their own

targets

CDM allows

developed countries

to generate ‘carbon

credits’ (Certified

Emission

Reductions, CERs)

in developing

countries

Advantages for developed

countries:

relatively low-cost &

politically acceptable

Advantages for developing

countries:

inward investment,

environmental & technology

benefits

11 11

CDM projects out look - Africa is struggling …

• 4 countries (China, India, Brazil and South

Korea) account for 70% of CDM projects and

80% of CERs through to 2012

• Sub-Saharan Africa accounts for 2% of

registered projects and 5% of CERs through

to 2012

• 88 non-Annex 1 countries have yet to benefit

from any registered CDM project activity

12 12

What in Conference of Parties (COP)?

Internationally, the global response to climate change is guided

by the United Nations Framework Convention on Climate Change

(UNFCCC) through the COP framework. COP meetings are held

every year (...around Dec). The last was held in Cancun, Mexico.

This year, the meeting will be held D

Kenya’s aspiration in the COP framework is to engage in the

UNFCCC process with a view of securing a binding, multi-lateral

international agreement that is, Inclusive, fair and effective - with

a view of balancing priority between adaptation and mitigation

responses; with an appropriate development - climate response

balance recognizing development needs of developing countries

13 13

Thank You!