Alexander Lukose

THE WORLD BANK GROUP ARCHIVES
PUBLIC DISCLOSURE AUTHORIZED
Folder Title: Kenya Tea Development Authority - Final Report - Part one of the Digest of
Findings and Recommendations - April 1969
Folder ID: 196551
Project ID: P001226
Dates: 04/01/1969-04/01/1969
Fonds: Records of the Africa Regional Vice Presidency
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Digitized: 2/12/2020
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K E
Kitale CHERAN,,Ami
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NAN'ijKAMAMIGA ml
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KIHKERICHd "9 /&SEDAl
NAIROBI
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KENYA TEA DEVELOPMENT AUTHORITY
FINAL REPORT
~3
Part One 3,
DIGEST OF FINDINGS
AND
RECOMMENDATIONS
0LODO
- ~INBUCON LONDON _
Kenya Tea Development Authority Final Report
FOREWORD
Thiz 6o Lewo'td povides some note about the Kenya Tea Devetopment
Authotity in odeA that thos e ,eadez who ae not 6amiLiN with the
operations o4 the Autho)Lity (KTDA) may have some backgtound
intozmation concening its wodk.
The KTDA wais estabLished in 1960 to p/uomote, 6inance and contoL

the deve.opment o4 tea to be gjown by smaUhodes. Its opexations
extend oveA zeven main tea-guowing oaeas . Thes e ate shown on the
map on the tite page and axe isted betow, togetkeu with the
totat numbeA o6 acnue devoted to 6maLhoZde) tea growing in each:-
AbeLdaxes 8,200 ackes

Mount Kenya South 4,300 acre5
Mextu 2,700 acke
Ke.icho 4,000 acues
K&i~ 4,200 acteu
Nandi/Kakamega 3,200 aces
Cheiuangani/Makakwet 40 ackees
At pruesent thee ae oveu 39,000 guowea ,tegiste.,ed with the KTDA.

Each gloweA iL ttained in planting and cultivating the tea busheu
and in pLucking the LeaS, and is ues ponsible So de.ive.ing his
Zea4 to a buying centte. Heue the teaS iz iLnpected and weighed
by a KTDA Lea6 collectou and a tueceipt issued to the gtowex.
- 2-
Following ins pection at the buying centte, the Zea6 is stoLed in

,siL bags, nominaLLy o6 25 Lb. capacity, to await co£tection by
KTDA vehicteu. The coLtection vehicteu conist mainLy o6 Aout-
whee.E duive Zo&uuiae with capacities o6 5,000 to 6,000 Lb. each.
The £oAnieu have specia£ Ataaez 6Ltom which the bag5s o6 Lea6 a. Le
,suspended duting txanspott to the actokies, to avoid undue
brtuising oA the Lea4.
On anivat at the 6actotty (which can be up to midnight and sometimez

beyond duting the peak 5easons ), the LeaA is again weighed and
inspected. It is then Loaded into the witketing txoughs Ao- the
6int stage o6g manugackuxe into made tea.
At p'esent KTDA deivex LeaA to 4wetve actouies. Six o6 the

4weLve cte whot£y owned by comme,'cial intetest. The ,Lemaining six
actoies aLe KTDA actoties6, o6 which Alue aute ope,'ated by managing
agents A-tom commexcLaL undetakings and one by the KTDA itseL-.
These six KTDA Aacto,,-iez take more than 80% o6 the LeaA coLLected.
Guoweu ae paid at the end oA each monith at a grtoss 'tcute oA 40

cents peA Lb. oA gteen LeaA deLive.ted, but KTDA chages, which
cove deveLopment, ttaining and LeaA coltection costs, axLe deducted
priok to payment. These chages ae 17 cents pet Lb. at prtesent.
Thiz Leaves the goweus with 23 cents peal Lb. oA g Leen Lea6 a/ thei
6iut payment.
AAtext meeting aLL Aactoty, distixbution and seting chaxges, any

wsutpLus is aLlocated to grLowexs as a second payment, in addition
to thei Aiust payment oA 23 cents pe.,L Lb.
- 3-
By June 7968 KTDA had completed its /isut and second Deveiopment PHans
ahead og schedute and had contiotted the ptanting o some 27,000 acres
o6 tea. The average tea holding aS each growet during 1967/68 wads
0.7 ackes. From the plantings atmost 9 mitton pounds oa tea wier
manudactuaed duking 1967/68, which gave a retukn o6 £873,000 to the
gltowes, including an aveage o 4 ceats5 pe £b. as a second payment.
The Third Phase Development Ptan 6tatted ths yeak. This provides
oat the pLanting and proce/ssng o a datthev 35,000 acnes oa tea
du ing a pLanting pe.riod extendkng over 6ive years to 1972/73. On
its completion the maLthoLde tea plantations wiV extend to oveA
61,000 aces.
It i6 anticipated that apptoximatety 17,000 new growers wiUl

participate in the Thid PLan, thus taising the totaL numbe a/S
smaLthoLdet tea growers in '972 to apptoximatety 56,000.
The Thitd PLan is expected to achieve an in.cae in the output a/

made tea /kom the /guxe o6 9 milion Lb. during the year 1967/68 to
66 mi££Lon £b. during the yeat 1981/82, that is, an Lnckease to ovei
6even times the cuVent output.
The compattive quantitiue o tea pioduced /Som the conmexcia estates

and /iom the KTDA in Kenya in 1968 and the piojected KTDA 6/guas
oSa 1981/82 ate as alUows:-
7968 1981/82
Ackeage Pkoduction Acteage Production

'000 m b, '000 m. Lb.
Cometciat E tates 53 53 not kinown not known
KTDA 27 9 61 66
- 4-
In 1966 expotts /S tea /rom Kenya eatned £8,700,000. ThLs was 19%
o6 Kenya',s totaL aguicuLturct exports and 15% o6 its totat domestic
expokts. Tea tanked zecond in Kenya's expokts.
Kenya tea enjoys a reputatxon /or high qua&ity The prices obtained
at the London auctionz compate aauouably with woktd prices.
By 1980, and csuming present wortd prces, exports o6 tea /Aom

Kenya coutd totat £13 nilion, when it is possibte that tea wouLd
become Kenya's majok exporit.
It is against this background o soctaL, cs weLe a, economic,

objectives that the KTDA pkoject and ouL asignment 5houPd be 5een.
The concept o6 the KTDA Devetopment PLans, as weLL as being based

on economic considetations, encourages cma'hotdeus to contuibute
to the expansion o6 agricuLture oveA a wtde area o6 Kenya.
Its principaL me.it/s £ay, pethaps, more with its uo/-&slonaky 'socLo-
LogicaL putpose than with its comien.cia4 purpose, oat it is indeed
a plan intended to 6timulate intexest in weatth and in ca'sh amongs5t
a -taditionaLuytand-owning peope-L'
It i,6 by no mean the most economical way to grLow tea - indeed, the
capitaL investnent requir..ed in oads and in collection and distiubution
/acLities, with wh-ch th-c report ILs primaui y concekned, is evidence
o6 the type o/ problem which KTDA will alwayls have to /ace.
- 5-
Thiz is not to say that the poject should not prLove economicaL£y
viabte, provided that
-
. the output can be sotd successuly
. the cash payments to the growems emain

,su6ic>ientty cttactive in magnitude
1oL them to continue to opeiate the
scheme
. the inheLent ine6 ciencies in the green

Lea.S cottection 6 ystem temain su icienity
acceptable on are gadualy eliminated
at no signiticant inctease in costs.
In conctuding thiz 6omewo'd we woutd -ike to expLess ouL waxm

appteciation o6 the hep given to us duxing the couxse og oux
,studies by the BoaLd o6 the KTDA and its Head Ogice and 6e.Ld
zta66.
We have been mos5t imptessed by the good communiLcations thett exist

thoughout the Authority and by the enthusiasm, dete.mination and
abitity o its peusonnet. Theae actou and the exceL2ent {Lnanciat
data avaiabte have conttibuted mateia££y to the ,Lange and the
compZetion o6 this study. We wouPtd pakticu&atly mention the countesy
and asuistance that has been extended to us by MA. F.I.H. MoiLeithi,
Genextai ManageA, ML. C.K. Kaanja, Assistant GeneLaL ManageL,
MiL. R.D. Hughes, Chie Accountant, and Mr. W.B.G. Raynot, the SotmeL
GeneLat ManageL, and the many Tea and Lea6 Og gicens
.
- 6-
We would aL o tike to place on !ecotd the co-opeation that ha6

been a1 6omded to us by the Managing Agents o6 the KTDA 6actotie.,
East A6,tican Acceptances Ltd., Jamez Fintay & Co. Ltd., and George
Wi&namson (A'tica) & Co. Ltd., togetheu with Eatetn PRtoduce Ltd.,
and Btooke Bond Ltd. AUL have wilingly given us the bene6ist og
theirt expeience and this haz hetped ouA studiez og the 6actoties
and aszociated items. The two manaiactwtexs o tea machinexy,
MazhaLs Tea Machinety Co. Ltd., and Davidson & Co. Ltd., aZso
have been ctosely as5,sociated with out 6actory studiez and have made
many valuabe 6ugge-6tion.
We also thank the Minisntg o4 Womks, the Minising o6 Agiculute,

the Miniztsy o6 Economic Planning and Devetopment, the Wo'rd Bank
and the Commonweatth DeveLopment Coupoation 6o theiA intetesting
and useuL discasz on with us.
Finat~y, but not the Ze~at, we would Like to 5ay how much we have
enjoyed the tatkz we have had with the guowes' Aepte'sentative's.
Theze have been o6 great help to us in teaxLning at 6iut hand o6 the
aims and problems o6 the growe.z, upon whom the succes o6 the whole
expansion progtamme ultimate4y depends
.
E.G. RusseL
R.B. Co-Lie
D. Faitburn
D.J.K. Geeggain.s
F. Lee
April 1969
K E N Y A
Kitale CHERANGANI
*Maralal
NANDIIKAKAMEGA Mt
s Thomsont Kenya
£pt #-frMERU
KEic ,9NyeMl MT.KENYA SOUTH
KISII IABERDARES
0 NAIROBI
Mombasa
FINAL REPORT
Part One - Section 1

TERMS OF REFERENCE
April 1969
- 7-
CONTENTS OF PART ONE
Page
SECTION 1 - TERMS OF REFERENCE 11
SECTION 2 - THE TOTAL SYSTEMS and a 12

SUMMARY OF OUR RECOMMENDATIONS
2.1 The Elements or sub-Systems that we have 12 - 14

studied
2.2 The Economic Analysis 14 - 26
2.3 Summary of Recommendations 26 - 28
2.4 Analysis & Recommendations by Area 29 - 30
2.5 Concluding Remarks to this Section 30 - 33
SECTION 3 - ROADS 34
3.1 Preliminary Observations 34
3.2 Soil Tests 34
3.2.1 Investigation 34
3.2.2 Conclusions from Soil Tests 34 - 35
3.3 The Case for Improved Roads 35
3.3.1 Specifications 35 - 36
3.3.2 Road-Making Materials 37 - 38
3.3.3 Realignments 38
3.3.4 Costs 39
3.3.5 Construction Programmes 40
3.4 Alternative Development Plans 40
3.4.1 Improved Roads - Alternative A 40
3.4.2 Minimal Maintenance - Alternative B 41
3.4.3 Complete Gravelling - Alternative C 41 - 42
3.4.4 Selective Maintenance - Alternative D 43
3.4.5 Other Alternatives 43 - 45

-8-

Part One
SECTION 3 - ROADS (Cont'd) Page
3.5 Costs and Benefits 46
3.5.1 Construction and Maintenance 46 - 47
3.5.2 Traffic Counts 47 - 48
3.5.3 Traffic Growth and Composition 48
3.5.4 Vehicle Operating Costs 49
3.5.5 Benefits to other Traffic 49
3.5.6 Benefits to other Agriculture 50
3.6 Control of Maintenance 50 - 51
3.7 Conclusions 51 - 52
SECTION 4 - LEAF COLLECTION 53
4.1 Introduction 53
4.2 Analysis of Current Leaf Collection 53 - 54

Costs
4.3 Current Leaf Transportation 54 - 55
4.4 Future Leaf Transportation 55
4.4.1 General 55 - 56
4.4.2 Type of Vehicle 56 - 58
4.4.3 Programmes of Vehicle Requirments 59 - 62
4.5 Green Leaf Containers 62
4.5.1 Current Types 62
4.5.2 Alternative Leaf Containers 63
4.6 Current Buying Centres 64
4.6.1 The Current Situation 64
4.6.2 Buying Centre Operations 64 - 65
4.6.3 Capacities 66
- 9-

Part One
SECTION 4 - LEAF COLLECTION (Cont'd) Page
4.7 Future Buying Centres 66
4.7.1 Capacities 66 - 67
4,7.2 Numbers and Locations 67
4,7,3 Design 68
4.7.4 Equipment and Procedures 68
4.7.5 Costs 69
4,8 Leaf Bases 69
4.8.1 Costs 69 - 71
4.8.2 Leaf Trays 71
4.8.3 Transport Control 72 - 73
SECTION 5 - MANUFACTURE AND DISTRIBUTION 74
5.1 Introduction 74 - 75
5.2 Factories 75
5.2.1 Type of Process 75 - 76
5,2,2 Special Factors 76 - 77
5,2.3 Cost versus Capacity 78 - 79
5.2.4 Design 79 - 81
5.2,5 Management 81 - 83
5.2.6 Quality Control 83 - 86
5.2.7 Control Information 86 88
5.2,8 Development Programmes 88 - 89
5.3 Distribution 89
5.3.1 Alternatives to Tea Chests 89 - 91
5-3.2 Transport Arrangements 92 - 93
5.3.3 Air Freight 93
5,4 Conclusions 93 - 94
- 10
-
Part One
SECTION 6 - RECOMMENDATIONS FOR FURTHER STUDY 95
6.1 Leaf Collection 95
6.2 Manufacture 95
6.3 Distribution 95
6.4 Marketing 95
APPENDIX I Maps showing road networks 96
Note: The monetary units in this report are expressed in E Kenyan

except where otherwise stated: 100 cents = 1K shilling
17 K. shillings = £1 sterling approx.
K.T.D.A. FORECAST
PRODUCTION OF MADE TEA
70-
60-
50-
40-
M. lb
made tea
p.a.
30-
20-
10-
01
1967/68 1981/82
- 11
-
Part One
Section 1
TERMS OF REFERENCE
The terms of reference given for this study were to determine the most
economic combination of factors and techniques for the collection
and transport of green leaf from smallholder tea plantings, the
processing of this leaf and the further transportation of made tea
to the nearest port or railhead. The study was required to yield
valid conclusions as to:-
. the most economic scale of factory production, and hence

the number and cost of factory units required to process
the projected tea output; also the most suitable locations
for these factories;
. the most economic method(s) of transportation of green

leaf from smallholder plantings to the factories and
of made tea from the factories to ports or other
destinations; also the types, numbers and cost of vehicles
required for this purpose;
. the extent of upgrading of existing tea roads that would

be needed and justified in the light of the recommended
means of transport; also any requirements for further
construction of tea roads, and the mileage, location,
standards and cost of such roads.
All the above conclusions were to be related to the maximum tea
production that is proposed to be attained under the Third Tea

Programme and to the proposed phasing of this Programme between now
and 1982 - see graph on facing page.
The terms of reference call for cost estimates for the upgrading of
the roads to be within an accuracy of 20%. They do not extend to
recommendations concerning the source and the cost of capital, and
these items are therefore not dealt within this report.

K E N Y A
Kitaje CHERANGAN Maralal
NANDI/JAKAMEGA Mt
Thomsont Kenya
Kedcho ' Nvr 9tme0ERU
g N A IT KENYA SOUTH
NAIROBI
Mombasa*
FINAL REPORT

THE TOTAL SYSTEM AND A SUMMARY
OF RECOMMENDATIONS
April 1969
THE TOTAL SYSTEM
THE SUB SYSTEMS THE SUB SYSTEMS SOME MAJOR

STUDIED NOT STUDIED INTERACTIONS
Husbandry:
I including
NurseriesI
Planting.
Tea Growing
Other
Tea Road Agricultural and
NetworksEconomic
NetworksDevelopments
Leaf
Collection
The Economy
of Kenya
Tea
Manufacture
Marketing
of Tea
Transport Transport World Tea

within outside Markets
Kenya Kenya and Production
Blending, Packing
and Distribution
to Consumer
- 12
-
Kenya Tea Development Aurhori y Final Report
Part One
Section 2
THE TOTAL SYSTEM and a

SUMMARY OF OUR RECOMMENDAT IONS
21 The Elements or sub-Systems that we have studied
The elements of the TOTAL SYSTEM that we have studied include:-
the road networks used for the collection of green

leaf and the distribution of made tea
all factors concerned with the K-T.D-A- operations

of the collection and transport of green leaf to
the factories
the factories which convert the green leaf into

made tea
the distribution of the made tea to its point of

sale, if sold in Kenya, or to Mombasa, if sold
abroad.
These four elements are only part of the much larger TOTAL
SYSTEM illustrated in the diagram on the facing page. We
should like to remind the reader that a fully comprehensive
evaluation of the smallholder tea project must involve
consideration of all the elements of this TOTAL SYSTEM and
not only those with which we have been directly concerned.
The four elements contained in our study have been dealt

with as far as possible along parallel lines of
investigation, leading to an overall economic analysis
described later in this section. Listed overleaf are the
significant factors we have studied in each of the four
elements
- 13
-
Part One
Section 2
Tea Roads Standards of construction and maintenance
. Alignments
. Walking distances for growers
Leaf Collection . Size and location of buying centres
. Methods at the buying centre
. Transport of leaf to factories
. Size and location of leaf bases
. Methods and equipment in loading and

unloading leaf collection vehicles
. Seasonal and daily variations in

volumes of leaf collected
. Daily leaf collection period
. Quality of green leaf
Tea Size and location of factories

Manufacture
. Design of factories, including leaf
reception
. Method of operation, including management
. Seasonal and daily variations in

production
. Hours of operation of factories
. Quality of made tea
Transport & . Current and future expected markets

Distribution
. Tea containers
. Methods of transport
Volumes handled
- 14
-
Kenya Tea Development Authoriry Final Report
Part One
Section 2
Each of these four elements receives separate treatment in
this report, but the depth of treatment among the significant
factors has necessarily varied. For example, all factors
concerned with tea manufacture and distribution are
directly influenced by the demand for the various types
of tea available now or in the future. The development of
instant tea, for example, could have a profound effect.
It has been assumed in this study that the types of tea
manufactured in the future will be substantially the same
as at present, although the methodology employed in the
study could easily be adapted to different market

assumptions or future technological developments.
Commitment to new factories is of course limited to the
minimum time it takes to design and construct them
-
a period of approximately two years.
2-2 The Economic Analysis
We have considered how the four elements comprising our
SYSTEM should be developed to deal with the volumes of

green leaf predicted by the K.T.D-A. from now until
30th June, 1982, This latter date is that at which all
the plantings envisaged under the Third Development Plan
will have reached full maturity,
For each of the six main tea growing areas, we have see Part Two
determined a number of alternative development programmes 2.2.1
and evaluated them by discounting the total cost of
each programme to its present value, In all cases costs
have been evaluated at current prices,

- 15
-
Part One
Section 2
The significant variables in these comparisons are:-
. The standard and degree of road construction

and maintenance
. The capacities of the factories
. The types of leaf collection vehicle used
. The amount of green leaf spoilt through

delays in getting it to the factory
. The operating costs of all vehicles using

the tea roads.
Undoubtedly the roads issue is the one of outstanding
significance to the K.T.D.A. Third Development Plan or

indeed to any further possible expansion.
In qualitative terms an analysis of the road alternatives

shows
If we have an If we have a
EXPENSIVE ROAD NETWORK CHEAP ROAD NETWORK
Roads High capital cost Low capital cost
Low maintenance cost High maintenance cost
Vehicles Lower purchase & Higher purchase

&
operating cost operating cost
Factories Large capacity - lower Small capacity - higher

cost per pound of tea cost per pound of tea
Spoilt leaf Low High
Benefits to tea High Low

and other agriculture
Rate of general High Low

economic development
- 16
-
Part One
Section 2
In fact we have examined four alternative development plans
for each of the six large tea-growing areas. These four
alternatives evolve directly from the treatment of the problem
of roads in the tea areas and have been chosen so far as

possible to cover the whole range of road development
possibilities. Details of the alternatives and the detailed
results of the economic analysis are as follows:
Road Alternative A
Improved Roads - comprising bitumen roads of a See Part Two
high standard with new alignments chosen 2.2.1

2.2.2
wherever possible so as to reduce route mileages, 3.3.2
General Traffic - costs reduce to those appropriate
to good roads on completion of road construction.
Factories - capable of development to 5 million lb.
made tea capacity.
Leaf Transport - 2-wheel drive vehicles.
Spoilt Leaf - reduces to nil on completion of road

construction.
Road Alternative B
Minimal Maintenance - continuation of existing practice
with the existing tea road network.
General Traffic - costs as for vehicles operating
on earth roads.
Factories - cannot be expanded beyond 2 m. lb.
capacity because of leaf transport difficulties.

- 17
-
Part One
Section 2
Leaf Transport - 4-wheel drive vehicles required
plus special measures to deal with leaf transport
during wet periods of each year. Transport costs
become 75% higher than normal 4-wheel drive

vehicle costs within five years from now and then
remain at that level.
Spoilt Leaf - increases to double present level

within five years and then remains at that level.
Road Alternative C
Complete Gravelling - extension of the present 6"
gravelling programme to the whole of the existing
road network, and annual maintenance, consisting of
re-grading the existing road network twice a year

and, on one of the gradings, applying 4 inches of
gravel to two thirds of the network and 2 inches
of gravel to the remaining one third. After ten
years, it is assumed that this treatment would have
improved the roads to such an extent that the
annual maintenance cost would be halved.
General Traffic - vehicle operating costs midway
between the unimproved and improved road cases.

All other assumptions are as for the Improved
Roads case, except that the running costs of
K.T.D.A. 2-wheel drive vehicles are 25% higher
than with the Improved Roads case.

- 18
-
Part One
Section 2
Road Alternative D
Selective Maintenance - consisting of selective
maintenance of the tea roads at a cost of 1/3 of 3
the complete gravelling maintenance cost in
Alternative C.
General Traffic - vehicle operating costs reduce
by 10% from unimproved roads case.
Factories - cannot be expanded beyond 2 m. lb capacity
because of leaf transport difficulties.
Leaf Transport - 4-wheel drive vehicles required.
Spoilt Leaf - remains at its present level.
For each of the four road alternatives considered, a year-
by-year development programme has been worked out involving
the location of leaf collection buying centres at key
stages in the development and the allocation of these buying

centres to factories. Our estimates of factory costs show.
that factories operating at below one million lb. made tea
production are unlikely to be profitable. We have therefore
taken it that no new factory will be introduced until there

is a minimum of one million lb., or thereabouts, of tea
production for it.
Leaf collection costs have been determined from graphical See Part Two
relationships developed from the computer simulation 2.1
results. These relate the annual leaf transport cost
for a given size of factory to the average buying-centre-
to-factory distance and the total amount of leaf collected.

- 19
-
Part One
Section 2
We define spoilt leaf as that which, although collected,
has deteriorated to the extent that it cannot be
processed into made tea. There is an additional category
of spoilt leaf, which is not sufficiently bad to be
rejected at the factory, but which results in made tea

of poor quality. We have been unable to take this into
account in the economic analysis because of the difficulty
of obtaining quantitative data. Our estimates of the
benefits of the alternative development programmes must
therefore be regarded as conservative.
The effect of spoilt leaf on the total system is to See Part Two
reduce the total costs of tea manufacture and 2.2.2
distribution, but at the same time reduce the income
from the sale of the tea. For this reason we have
had to take account of the income from tea sales.
In order to make fair comparisons between the
alternative road solutions, a total "effective cost"
of each road alternative has been calculated as the

SYSTEM cost less the income from tea sales. The SYSTEM
cost comprises:-
Capital cost of road construction
Cost of road maintenance
. General traffic operating costs
Cost of leaf transport
Cost of K.T.D.A. leaf transport bases
Fixed factory costs
Variable factory costs
Costs of distribution of made tea.

- 20
-
Part One
Section 2
Other costs which are part of the TOTAL SYSTEM costs,
but which are assumed the same for all alternatives,
have not been included. These costs include
. Costs of green leaf purchase from growers
. Costs of K.T.D.A. leaf collectors
. Costs of K.T.D.A. field development
. All other K.T.D.A. costs.
The above mentioned effective SYSTEM cost for each
road alternative has been discounted at rates of 8%,
10% and 12% over a period of time starting from the
present and continuing until twenty years after the
completion of road construction. No increases in
tea production beyond the 1981/82 level have been
assumed.
- 21
-
Bart One
Section 2
The Results of the Economic Analysis
The total construction and maintenance COSTS over all areas

See Part Two
for the four alternative road development programmes 3.6.1.
defined above are estimated at 3.6.2
COST over COST over Total COST

5 years 10 years discounted
at 8%
Alternative Em. £m. £m.
A - Improved Roads 17.5 20.3 16.7

B - Minimal Maintenance 0.3 0.6 0.6
C - Complete Gravelling 8.5 14.6 13.0

D - Selective Maintenance 2.1 4.4 4.7
The resulting BENEFITS to general traffic using the tea
roads, in terms of reduced vehicle operating costs, for

See Part Two
Alternatives A, C and D relative to Alternative B are 3.6.1
estimated at 3.6.2
BENEFITS to General Traffic over

20 yrs Discounted @ 8%
Alternative A relative to B £24.7M Saving
Alternative C relative to B £14.lM Saving
Alternative D relative to B £ 5.4M Saving

- 22
-
Part One
Section 2
The total BENEFITS to tea operations of Alternatives A, C

and D relative to B are:-
see Part Two

3.6.1
3.6.2
Annual BENEFITS to BENEFITS to tea

tea at 1981/82 over 20 yrs.
production discounted @ 8%
Alternative A relative to B £883,000 p.a. £5.7M

Alternative C relative to B £778,000 p.a. £5.OM
Alternative D relative to B £380,000 p.a. £2.8M
The combined BENEFITS due to both general traffic and tea

operations, of Alternatives A, C and D relative to
Alternative B are:-
see Part Two
3.6.1
3.6.2
Total benefits in Internal rate

20 yrs discounted @ 8% of return
Alternative A: 24.7 + 5.7 - 16.1 = £14.3M 16%

Alternative C: 14.1 + 5.0 - 12.4 = £ 6.7M 15%
Alternative D: 5.4 + 2.8 - 4.1 = £ 4.lM 17%
The above figures can therefore be amplified in the following

three statements:
- 23
-
Part One
Section 2
Statement of Alternative A - Good roads, 2-wheel drive

relative to Alternative B vehicles 5m. lb. factories
The additional cost of the £17.2m. in 5 years

road programme will be - £19.7m. in 10 years
These additional costs when discounted

at 8% over 20 years are - £16.1m. (i)
The possible saving on the estimated

capital cost of 2m. lb. factories and
4-wheel drive vehicles at end of 3rd
phase Development Plan (1981/82) is - El.7m.
The cumulative benefits from the

K.T.D.A. programme alone, when
discounted at 8% over 20 years
after completion of the roads in
1975 will be - £5.7m (ii)
The annual rate of saving at this

time will be about - £0.9m.
The additional cumulative social

benefits arising from the betterment
in other traffic movements in the tea
areas, when similarly discounted, are
estimated conservatively at - £24.7m. (iii)
Thus the total cost benefit discounted

at 8 % over 20 years from the completion
of the roads, but not allowing for the
benefits of new agriculture and industry
induced in these areas is:-
(ii) + (iii) - (i)

£5.7m. + £24.7m. - 16.1m. = 14.3m.
- 24
-
Part One
Section 2
Statement of - Complete gravelling of existing

Alternative C relative network and full annual maintenance,
to Alternative B
2-wheel drive vehicles, 5m. lb.
factories.
The additional cost of the £8.2m. in 5 years


at 8% over 20 years are:- £12.4m. (i)
The possible saving on the estimated

capital cost of 2m. lb. factories and
4-wheel drive vehicles at end of 3rd
phase Development Plan (1981/82) is - £1.0m.
The cumulative benefits from the K.T.D.A.

programme alone, when discounted at 8%
over 20 years after completion of the
roads in 1975 will be - £5.0m. (ii)

The additional cumulative social benefits

arising from the betterment in other
traffic movements in the tea areas, when
similarly discounted, are estimated
conservatively at - £14.1m. (iii)

@ 8% over 20 years from the completion
(ii) + (iii) - (i)

£-5.0m. + £14.1m. - 12.4m. = £6.7m.
- 25
-
Part One
Section 2
Statement of Alternative D - Selective maintenance of

relative to Alternative B existing road network, 4-wheel
drive vehicles, 2m. lb

factories.
The additional cost of the £l.8m. in 5 years


at 8% over 20 years are - £4.1m. (i)
The cumulative benefits from the K.T.D.A.

programme alone, when discounted at 8%
over 20 years after completion of the
roads in 1975 will be - £2.8m. (ii)

The additional cumulative social benefits

arising from the betterment in other
traffic movements in the tea areas, when
similar discounted, are estimated
conservatively at - £5.4m. (iii)

@ 8% over 20 years from the completion
(ii) + (iii) - (i)

£2.8m. + £5.4m. - 4.1m. = £4.1m.
TOTAL ANNUAL BENEFITS TO K.T.D.A. TEA OPERATIONS
Road Alternatives A,C and D compared with B
1,000-
CASE A
800-
CASE C
600-
£'000
400-
CASE D
200-
1968 /69 70 72 74 76 78 80 82 84 86 88/89
YEAR
- 26
-
Part One
Section 2
The graph opposite shows the total tea benefits year by

year. It can be seen that Alternative A produces lower
benefits initially than Alternatives C and D. This is
partly because we have assumed no significant expenditure
on road maintenance in Alternative A during the road
construction period, so that leaf transport costs are
relatively higher, particularly with the larger factories
involved. It is also due to the higher initial fixed
costs of the new factories, which are designed for
expansion in stages to 5 million lb. capacity.
2.3 Summary of Recommendations
The economic analysis we have undertaken shows that the

greatest benefits to K.T.D.A. and to Kenya arise from a
development plan incorporating a radical tea road
improvement programme. This programme involves a high
capital cost, but in the context of falling world tea
prices may well be the only one to ensure the continued
viability of the smallholder scheme.
The main feature of our recommended plan are:-
Improved road networks to be constructed in each

tea area (Alternative A). The improved networks
in general follow the existing network in all tea
areas except the Aberdares, where the proposals
include a new 54-mile spine road. The networks
incorporate new alignments where appropriate to
give better road design and reduced mileage.
They incorporate adequate foundations shown
- 27
-
Part One
Section 2
to be necessary by soil tests and the protective
sealing of these foundations with bitumen.
The introduction of factories capable of processing
5m. lb. of made tea per annum, or of capacity

nearest to this figure in those areas where leaf
equivalent to less than 5m. lb. is available.
The adoption of 2-wheel drive fixed-chassis type
vehicles powered by diesel engines, with a leaf
carrying capacity of approximately 6,500 lb.
Arrangements at the factories for leaf to be

received up to 10 p.m. during peak periods.
The use of plastic or similar perforated trays,
with capacities of approximately 65 lb., for
containing leaf during transport from the buying
centres to the factories.
This Alternative A will give total net benefits of £14.3m,

when discounted at 8%, relative to a continuation of the
current practice of minimal maintenance of the existing road

network. These benefits arise from lower costs of the tea
operations and from reduced operating costs of other traffic
on the tea roads. They are calculated over a period of
time continuing from the present to 20 years after the
completion of road construction.
The plan will also give an average internal rate of return of
16% on the investment in the improved roads programme over
all areas.
- 28
-
Part One
Section 2
The plan provides an improved network in each of the six

main tea growing areas totalling some 980 miles. This
network will also be of great significance to the development

of other agriculture in these areas where the poor conditions
of the roads, particularly during the rains when yields
are at their greatest, impede this development.
The solution will enable the tea operations to be undertaken

at a high level of efficiency, which will bring about
recurring annual savings of approximately £880,000 per annum
at the 1981/82 level of output.
It is possible that on completion of the Third Phase Development

Plan, tea will be Kenya's No. 1 export and K.T.D.A. will
be controlling some 50% of Kenya's total tea production. The
recommended solution will provide the best opportunity for

Kenya to compete successfully in world markets. In the
context of possible falling world tea prices, it will provide
the best foundation for the continued success of the small-
holder scheme in which some 56,000 growers will by then be
involved.
The solution will involve a road reconstruction programme

of a total cost of some £16.2m., spread over a construction
period of some six years, plus El.8m. if the extension to
Kisii is added.
COSTS AND DISCOUNTED NET BENEFITS
OF ALTERNATIVE ROAD PROGRAMMES
TOTAL ROAD COSTS BENEFITS TOTAL BENEFITS

ALTERN- TO TEA INTERNAL Em.
AREA ATIVE OVER 10 DCF @ 8% £m. RATE OF
YEARS RETURN
%
£m. Em. 8% 10% 12% 8% 10% 12%
ABERDARES A 4.07 3.18 1.9 1.5 1.1 19 4.6 2.9 1.8

C 5.26 4.77 1.3 1.1 0.9 11 1.0 0.2 -0.3
D 1.62 1.77 0.8 0.6 0.5 15 0.8 0.5 0.3
MT. KENYA STH A 2.22 1.88 0.7 0.5 0.4 13 1.0 0.5 0.1
C 1.73 1.52 0.7 0.5 0.4 10 0.2 0.0 -0.1
D 0.53 0.55 0.3 0.3 0.2 14 0.2 0.1 0.1
MERU A 1.98 1.68 0.7 0.6 0.5 16 1.5 0.9 0.5
C 1.43 1.26 0.7 0.6 0.5 14 0.6 0.3 0.1
D 0.42 0.44 0.4 0.3 0.2 17 0.4 0.3 0.2
KERICHO A 2.60 2.19 0.7 0.5 0.4 16 1.8 1.1 0.6
C 1.45 1.29 0.6 0.5 0.4 18 1.3 0.8 0.5
D 0.43 0.45 0.4 0.4 0.3 18 0.8 0.6 0.5
KISII * A 5.68 4.63 1.2 1.0 0.8 14 2.9 1.6 0.6
C 2.64 2.35 1.2 0.9 0.8 18 2.4 1.6 1.1
D 0.74 0.81 0.6 0.5 0.4 18 1.2 0.9 0.7
NANDI/ A 3.69 3.11 0.5 0.4 0.3 16 2.6 1.6 0.8
KAKAMEGA C 2.08 1.84 0.5 0.4 0.3 16 1.4 0.9 0.5
D 0.61 0.64 0.3 0.3 0.2 18 0.8 0.6 0.4
ALL AREAS A 20.3 16.7 5.7 4.5 3.5 16 14.3 8.5 4.4
C 14.6 13.0 5.0 4.0 3.3 15 6.7 3.7 1.8
D 4.4 4.7 2.8 2.4 1.8 17 4.1 3.0 2.1
The figures for the benefits to tea assume no increase in tea production beyond
the 1981/82 level. The discounting calculations are taken to a date twenty
years beyond the completion of road construction envisaged under Alternative A,
which takes one 10 to 13 years beyond 1981/82. Hence any increase in tea production,
due for example to a fourth planting programme, could increase the benefits to
tea considerably.
* NOTE: The figures of road costs in the KISII Area include those
due to the probable extension of the present tea growing
boundary. The additional costs due to this are:-
10 year cost Discounted Cost
Alternative A 2.08 1.72
Alternative C 0.83 0.73
Alternative D 0.20 0.23

- 29
-
Part ONe
Section 2
2.4 Analysis & Recommendations by Area
The Table opposite shows the results of the economic analysis

for each main tea growing area.
It may be seen that Alternative A is consistently the best

solution. However, there are differences between the areas
which need to be discussed, should there be curtailment of
the road development programmes due to lack of finance.
The area with the highest priority for road improvement is

the Aberdares. The next area in order of priority is Meru
and, in particular, the area within Nyambene division where
extreme difficulty is experienced with the existing roads.
We would then place Mt. Kenya South, Kisii, Kericho and

Nandi/Kakamega in that order of priority.
In the case of the Kisii area, it seems to us that a

disproportionate amount of expenditure on roads is involved
in the probable extension of the present tea area. If this
extension could be avoided, and the planned further
acreage concentrated within the existing tea boundary, the
total net benefits at 8% discount for Alternative A would
bereduced from £2.9m to £2.2m but with a total road cost over
10 years reduced from £5.7m to £3.6m.
In the case of Cherangani Settlement Area, including Marakwet,

the 1981/82 forecast-of tea production is only 1.0 million lb.
At present the leaf is collected from 7 buying centres and
transported by Landrover to Mt. Elgon factory, which is some
40 miles away. The main problem here is what level of production
would justify a new factory near to, or in, the tea area.
- 30
-
Part One
Section 2
We have estimated the 1981/82 leaf transport cost, delivering
to the present factory, as 9 cents/lb of made tea, of which
3 cents/lb or roughly £1,500 p.a. would be saved by
delivering to a new local factory. A detailed investigation,

taking into account the expansion plans for Mt. Elgon
factory, is required to determine whether the estimated
transport saving would justify a new factory.
2.5 Concluding Remarks to this Section
We recognise that, under normal circumstances, the bitumenising
of the improved road networks would hardly be justified, taking

into account the present traffic counts in the areas - some
45 vehicles a day. We have however recommended it for the

following reasons:-
The networks are all in areas where there is heavy

rainfall and steep gradients. The leaf collection
vehicles require to operate daily in all weathers.
Leaf requires to be processed within 12 hours of
plucking, and if delayed beyond this time because
of transport difficulties would be rejected at
the factory.
There must in any case be a large investment in the

sub-base and base of the tea roads, with the materials
frequently having to be imported several miles from
other areas. The bitumenous surfacing which will
properly protect this base costs only between 10 and 15%
of the total road construction costs and should repay
itself handsomely in traffic and maintenance cost
savings.
. The construction of the new networks will probably

take a minimum of six years, by which time the traffic
counts will have reached a level which in itself
will justify this form of surface.
- 31
-
Part One
Section 2
No other road development plan offers benefits as significant
as those for the Alternative A plan recommended. For example
the cheapest programme, in terms of capital cost, which we
believe would permit the use of two-wheel drive vehicles and

5 million lb. factories is Alternative C. This would produce
net discounted benefits of £6.7m. compared with the figure of
£14.3m for the first plan. The total road construction and
maintenance cost of this alternative would be £14.6m over the
first ten years, compared with a figure of £20.3m for the
Improved Roads plan.
The cheapest road development programme that we believe
would enable K.T.D.A. to maintain the position envisaged
in its submission to the World Bank for the Third Development

Plan is Alternative D. This would involve a total annual
maintenance cost of some £440,000. The total discounted
benefits, corresponding to the figures quoted for the previous
two plans, would then be £4.1m. With this programme K.T.D.A.
would still be using four-wheel drive lorries and factories
would be limited to 2 million lb. capacity.
We have found no reason to doubt the general accuracy of the

K.T.D.A. forecasts of tea production. However, if they
did prove to be in error due to unforseen circumstances,
the calculated costs and benefits of the alternative
development programmes would naturally be affected. In
broad terms, any overall percentage error would lead to
approximately the same percentage change in the costs and
benefits applicable to the tea operations. The costs and
benefits associated with roads and general traffic would,
of course, not be affected.

- 32
-
Part One
Section 2
The need for urgency in dealing with the problem of roads

is apparent to all who have had experience in travelling on
them during or immediately after the rains. Already K.T.D.A.
vehicles have the utmost difficulty in getting through in
the wet, but in five years' time, when the volume of leaf to
be collected is likely to be three times the present volume,
the situation could well be such as to endanger the whole
K.T.D.A. operation.
Apart from the danger of the possible collapse of the

smallholder tea scheme, there are two further reasons for
quick action on the problem of roads. Firstly, any delay
means a loss of potential benefits. One year's delay would
involve a loss of 9% or roughly £lm. on the discounted
benefits quoted for the Improved Roads solution. Secondly,
there will be escalation in the cost of any road development
programme, if its implementation were delayed significantly.
At present this cost escalation appears to be about 5% per
annum.
The above findings relate to all K.T.D.A. tea areas taken

together. However, as the later results will show, the
strength of the case for fully improved roads, with the
time scales envisaged, varies from area to area. This is
further commented upon in Part Two, section 2.4.2.
During the course of our investigations we have noted that

there are difference4 in the U.K. prices realised for made
tea, by the K.T.D.A. factories, of between 3d and 6d a
pound. The lower figure of 3d is approximately equivalent
- 33
-
Part One
Section 2
to 20 cents. This may be compared with an average leaf

collection cost of 19 cents per pound of made tea and
an average factory cost of 86 cents per pound of made tea
estimated for the case involving 4-wheel drive vehicles
and 2m. lb. factories by 1981/82.
We are of the opinion that a specific study is warranted

to investigate the factors that contribute to the higher
prices and to develop means of quality control at the
factories to help secure these prices. We recommend that
such a study should extend to all aspects of marketing and
to the development of instrumentation to control the
factory processes in relation to market requirements
and prices.
K E N Y A
Kitale CHERANGANI
* % •Maralal
NANDIIKAKAMEGA Mt
K Thomsont Kenya
Vt M u Falls• 'E *6$MERU
g£ Nyerle 4ur MT.KENYA SOUTH

KISHl KRCOigrJABEROARES
0NAIROBI
Mombasa
FINAL REPORT

THE TEA ROADS NETWORK
April 1969
- 34
-
Part One
Section 3
ROADS
3.1 Preliminary Observations
Our initial studies of the tea roads, the leaf collection

difficulties, the costs involved in leaf collection, and
of the leaf losses indicated the need for an all-weather
tea collection road network to handle the sevenfold
expansion called for by the Third Development Plan.
As part of our study we commissioned East African

Engineering Consultants to carry out soil tests in all
the main tea areas, to report on their findings, and to
recommend road specifications suitable for use on these
soils and costs. Their terms of reference are given in See Part Two
Part Two and the report setting out their findings forms 3.2
Part Three. A brief summary of their findings and
recommendations follows.
3.2 Soil Tests
3.2.1 Investigation - Some 114 soil tests were taken

over all tea growing areas. These tests showed
that the soils consistently fall into the See Part Two
lowest engineering categories. They are of 3.3.1
exceptionally low strength and low densities.
3.2.2 Conclusions from Soil Tests - With soils of the

the See Part Two
types shown by the tests to predominate in
3.3.2
tea areas there is no possibility of satisfactory
- 35
-
Part One
Section 3
stabilisation with lime chemicals or cement.

The soils cannot be recommended for use in
road construction above te subgrade level.
Due to the poor engineering properties of the

soils found on the existing alignments, pavements
of above average thickness will be needed.
Suitable material for constructing this foundation

is not available in the Aberdares or Mount Kenya
regions, and must be imported at considerable
expense. In other areas, material of a suitable
standard is more readily available.
3.3 The Case for Improved Roads
3.3.1 Specifications - Six road specifications were proposed

by East African Engineering Consultants to meet See Part Two
3.3.2
these soil conditions and to cover broadly the
differing local requirements. Indeed, many See Part ThreE
alternative designs and road widths have been
discussed and examined and the costs of combining
different solutions for various parts of the tea
road network have also been fully explored.
All the specifications call for a 5" base of

compacted stone on a 6" thick sub-base, except
for Type 6, where the sub-base is reduced to 3".
Type I applies to the Aberdares Area where a new
- 36
-
Part One
Section 3
spine road through the tea area is proposed.

Types 2 to 5 are similar except for the extent
of earthworks. All include the protection of
the base by a bitumenous seal.
Type 1 - 22'0" carriageway trunk road, with

heavy earthworks, 5" thick compacted
stone road base course on 6" thick
compacted sub-base. Sub-base extended
to make up shoulders to full thickness.
Type 2 - 18'0" carriageway secondary road, with

heavy earthworks. Pavement as Type 1.
Type 3 - As Type 2, but with moderate earthworks.
Type 4 - As Type 2, but with light earthworks.
Type 5 - As Type 2, but with very light earthworks.
Type 6 - 18'0" carriageway for secondary roads

with very light earthworks. 5" thick
compacted stone road base course on 3"
thick compacted sub-base, extended to
make up shoulders to full thickness.
GRAVEL HAULAGE COSTS AND DISTANCES TO CONSTRUCT
IMPROVED ROAD SYSTEMS
Haul Road
Tea Area distance Width Haulage Cost per mile for
(miles) (feet) 11 depth of gravel
East of Rift
Valley
Aberdares
-
Spines - 17 22 £4,650
Spurs - 20 18 £4,820
Mount Kenya
South 19.5 18 £4,700
Meru - Imenti 10 18 £2,410

- Nyambene 4.2 18 £1,012
West of Rift
Valley
Kericho 3.5 18 £ 844

Kisii 3.5 18 £ 844
Nandi/Kakamega 4 18 £ 964
- 37
-
Part One
Section 3
3.3.2 Road-Making Materials - In the areas East of the

Rift Valley the only road-making materials available
are gravels and murrams. Crusher-run stone may
also be obtained but at present is not greatly
used for road construction, due to high costs and
low volume production. If, however, further
plant became available, crusher-run stone would
then become more widely used for road construction.
Other desirable road-making materials such as good

quality lime, cement and hot asphalt are not
readily available or are too costly to use for
road construction. Similarly bricks, used
elsewhere for low cost road construction, are
completely unavailable in quantity.
Even the available gravel and murrams, and the

potentially available crusher-run stone require
See Part Two
very long hauls to bring them from their sources
These haul 3.3.3
to the road construction sites.
distances, and the costs of hauling the necessary
material for specification type 2, 3, 4 or 5
road, are shown for each tea area in the table
on the facing page.
The high cost of obtaining suitable sub-base and

base material adds weight to the argument for the
proposed surfacing of the roads, since the bitumen
seal will protect the large capital investment
- 38
-
Part One
Section 3
in this sub-base and base material. In general

the actual cost of applying the bitumen seal on
to the sub-base and base foundation is between
about 10% and 20% of the total cost of the road.
3.3.3 Realignments - In the Aberdares area an See Part Two

imaginative scheme of realignment has been 3.4
proposed by the Consulting Engineers. This
consists of an entirely new 'spine' road to
specification Type I running North-South
through the tea area, which in addition to
providing a main spine through the tea area
provides a new through route between Nairobi
and Nyeri. This new route will save about
7 miles compared with the old route via
Thika.
In all areas the improved road networks have

been designed to give better and shorter routes
for the use of tea collection vehicles. The
guide line that has been followed is, that by
1981/82 most tea growers should be within a
11 mile straight-line distance from the nearest
buying centre lying on an improved road. The
average straight-line distance for all growers
will then be about 1 mile. There are, however,
exceptions to this rule in areas where the
density of tea growing is low, such as Kisii
and Kakamega, and where it would be uneconomic
to provide this level of service.
Maps showing the proposed realignments and the

existing networks in each area are given at the
end of Part One of this report.
Construction and Maintenance Costs for Improved
Roads, Alternative A, by Area
S P E C I F I C A T I 0 N+
2 3 4 5 6* Total Annual
Area Total Cost Maintenance

Cost/ Cost/ Cost/ Cost/ Cost/ Cost/ Miles (Em.) Cost
Mile Mile Mile Mile Mile Mile
miles £1000 miles £1000 miles £1000 miles £1000 miles £1000 miles £1000
Aberdares 54 29.7 105 21.2 159 3.90 £ 62,000
Mt. Kenya South 8 27.0 21 25.3 55 19.8 3 14.5 87 1.98 £ 33,900
Meru-Imenti 12 22.8 17 21.2 13 15.7 9 12.0 51 1.73 £ 35,900

Nyambene 16 21.0 8 18.7 14 13.2 3 10.5 41
Kericho 10 20.0 18 18.4 118 12.9 7 10.3 153 2.23 £ 59,700
Kisii 41 20.0 71 18.4 63 12.9 10 10.3 185 3.17 £ 72,200
Nandi/Kakamega 38 20.3 30 18.6 124 13.1 7 10.5 199 3.18 £ 77,600
Kisii Extension 37 20.0 22 18.4 45 12.9 1 10.3 105 1.82 £ 40,900
Totals 54 162 187 105 432 40 980 £18.01M £382,200
* Note: Existing M.O.W. schemes cover an additional 104 miles in the tea areas
+ Note: Includes Consultants fees at appropriate rates

- 39
-
Part One
Section 3
3.3.4 Costs - From a survey of the whole network,

the number of miles to be constructed under
each of the specifications has been computed
and costed.
Maintenance costs have been obtained from the See Part Two
Ministry of Works. It has been agreed that 3.6.1
3.6.2
the annual maintenance cost for the improved
roads in accordance with the six specifications See Part Three
will be taken as £390 per mile.
The total construction and annual maintenance

costs by specification and area for the proposed
improved road system, are summarised on the
facing table. Unit costs for roads to be
constructed to the six specifications in the
different areas are also shown.
IMPROVED ROADS - ASSUMED CONSTRUCTION PROGRAMMES
AREA WEEK NO.

0 25 50 75 100 125 150 175 200 225 250 275 300 325 350 375
ABERDARES
Surveys -SPINE ROAD
& 1,Obtain ,ISPUR ROADS
Design rFinance,.Obtain I-
Lad Construction
MT. KENYA SOUTH ec
MERU
KERICHO
NANDI KAKAMEGA
KISIH
KISII EXTENSION
JAN -- 1970 1971 - 1972 --- + 1973 - 1974 1975
-
1969
- 40
-
Part One
Section 3
3.3.5 Construction Programmes - The recommended See Part Two

programme of construction for the improved 3.5
roads in each area is shown in the diagram
opposite. The starting date has been taken
as 1st July, 1969, for all areas save the

Aberdares. In the Aberdares area, an aerial
survey has already been authorised by the
Ministry of Works to assist with the design
of the alignment of the proposed Spine
road, and the starting date has been taken as
1st January 1969.
3.4 Alternative Development Plans See Part Two
3.6
As stated previously four alternative road development plans
have been considered in the economic analysis; these are
See Part Three
A. Improved roads - the realigned network with

specifications recommended by E.A.E.C. as
already outlined in Section 3.3.
B. Minimal maintenance of the existing network.
C. Complete gravelling of the existing network
D. Selective maintenance of the existing network.
3.4.1 Improved Roads - Alternative A - Fully described

in sections 3.3 and 3.4 of Part Two and briefly
described in section 3.3 of Part One. Provides

all-weather road network with good alignment.
Reduces total mileage of tea roads from 1302
to 1084 (18%). Allows low vehicle-operating

costs.
ANNUAL COST OF MAINTAINING TEA COLLECTION ROADS
UNDER A PROGRAMME OF MINIMAL MAINTENANCE
ALTERNATIVE B
Mileage to be Cost of Mileage Annual

constructed Constru- to be Maintenance
Area
(Earth Standard) ction Maintained cost (@ £50
£ per mile)
£
Aberdares NIL NIL 311 15,500
Mount Kenya
South NIL NIL 103 5,150
Meru NIL NIL 131 6,550
Kericho NIL NIL 153 7,650
Kisii NIL NIL 185 9,250
Nandi/Kakamega NIL NIL 210 10,500
Sub-total (all NIL NIL 1,093 54,600

existing areas)
Kisii Extension 59 52,000 105 5,250
Total (All areas) 59 52,000 1,198 59,850

- 41
-
Part One
Section 3
3.4.2 Minimal Maintenance - Alternative B - Assumes
existing roads remain unimproved and £50 per
mile per annum allocated for maintenance as
at present.
Regarded as quite inadequate for future 4-wheel
drive all-weather traffic.
Annual maintenance costs for each area given
in facing table.
3.4.3 Complete Gravelling - Alternative C - Minimum

gravel specification on existing network that
will allow two-wheel drive leaf-collection
vehicles in all weathers.
Existing 6" gravelling plan extended to all
existing tea- collection roads, excepting 64
miles to be bitumenised byMinistry of Works
under its own future development plan.
Construction cost estimated at £2,400 per mile

for 6" course of gravel and associated drainage
works. Additional cost of hauling material from
quarries to the roads is a further £1,500 per
mile in the Aberdares.

COSTS OF ALTERNATIVE C - CONSTRUCTING AND MAINTAINING
TEA COLLECTION ROADS WITH COMPLETE GRAVELLING. ROADS
ASSUMED 18' WIDE, CONSTRUCTED WITH 6" THICK GRAVEL WEARING COURSE
Mileage Construct- Mileage Improvement Total cost of Annual Maintenance costs

Requiring ction cost already cost to bring construction of applying new gravel
Gravelling for 6" of gravelled gravelled roads and improve-
to 6" gravel to required ment @ 4" over 2/3 @ 2" over
thickness standard of network all
@ 2" over 1/3 network
of network
£ E £ £
Aberdares 237 943,300 74 195,400 1,138,700 484,500 312,600
Mount Kenya South 88 347,100 15 39,100 386,200 157,900 103,000
Meru 110 320,400 21 35,300 355,700 127,400 85,700
Kericho 116 310,500 37 49,500 360,000 127,700 87,700
Kisii 145 391,000 40 53,600 444,600 160,400 111,000
Nandi /Kakamega 178 483,600 32 44,000 527,600 182,100 126,000
Sub-total 874 2,795,900 219 416,900 3,212,800 1,240,000 826,000
Kisii (extension) 105 281,000 Nil Nil 281,000 91,000 63,000
TOTAL ALL AREAS 979 3,076,900 219 416,900 3,493,800 1,331,000 889,000
- 42
-
Part One
Section 3
Conditions in the tea areas and wear and tear

on the roads, will cause loss of gravel.
Yearly replacement programme regarded partly
as investment, building up the wearing course
to the point where annual maintenance costs
are reasonable.
Therefore assumed annual maintenance includes

grading twice a year plus application of 4"
of new gravel over two-thirds of the network
and 2" of gravel on the remainder.
Assumed this investment/maintenance programme

continued for 10 years, then reduced by half.
The costs for this annual investment/maintenance

programme given in facing table.
Variations on this alternative are possible by

applying initially a greater thickness of gravel
and reducing subsequent amount annual maintenance.
Total construction and maintenance costs of these

variations, over ten years could be compared with
the particular 'complete gravelling' case we have
considered, but the differences likely to arise in
the discounted costs by possible variation are
unlikely to affect the overall comparison with
Alternatives A and D.
ANNUAL COSTS OF MAINTAINING TEA COLLECTION ROADS
UNDER A PROGRAMME OF SELECTIVE MAINTENANCE
ALTERNATIVE D
Area Mileage to be Cost of Mileage to Annual

constructed Costrof bemaito Maintenance
(Earth construction be maintained £
Standard)
Aberdares Nil Nil 311 161,500

Mount Kenya
South Nil Nil 103 53,000
Meru Nil Nil 131 42,500
Kericho Nil Nil 153 42,600
Kisii Nil Nil 185 53,500
Nandi/
Kakamega Nil Nil 210 60,700
Sub-total
(all existing Nil Nil 1,093 413,800
areas)
Kisii
(extension) 59 52,000 105 30,300
Total
(All areas) 59 52,000 1,198 444,100
- 43
-
Part One
Section 3
3.4.4 Selective Maintenance - Alternative D - Since the
annual investment/maintenance costs of Alternative

C above will almost certainly be prohibitive,
a further case has been considered. This assumes
that one third of the annual investment/maintenance
cost for Alternative C should be'spent selectively.
This allows applying 4" of new material to two-
thirds of the network and 2" to the remainder.
The facing table shows the costs of this selective
maintenance. No construction costs are incurred,
save Kisii where certain roads require to be
brought to the standard of existing earth tea roads.
Four-wheel drive vehicles and factories limited to
2 million lb. capacity will be required.
3.4.5 Other Combinations of Alternatives - Since final

decisions on the construction programme will
depend upon the amount of funds made available,
combinations of our four alternatives can be
considered. For example, one solution could lie
between that for Alternative C,Complete Gravelling,
and Alternative D, Selective Maintenance, although
this would increase vehicle and factory operating
costs by the necessity to use 4-wheel drive
vehicles, and limit factory size to 2m. lb. capacity.
GRAPH SHOWING TOTAL CONSTRUCTION AND MAINTENANCE COSTS
FOR ALL AREAS OVER 10 YEARS (FROM 1968/69) FOR ROAD
NETWORKS CONSTRUCTED UNDER ALTERNATIVES A AND C AND
ALSO FOR NETWORKS CONSTRUCTED PARTIALLY UNDER ALTERNATIVE
A, THE REMAINDER UNDER ALTERNATIVE C; COSTS DISCOUNTED AT 8%.
-- 20
TOTAL 20 -
CONSTRUCTION
AND 18 1
MAINTENANCE Network constructed partially under alternative A,
COSTS OVER 16- - - remainder under alternative C. -- - - - - 16
10 YEARS
DISCOUNTED
AT 8%.
10 *~Alternative A
ALTERNATIVE ALTERNATIVE
C A
8- - - - --- -- - -- - - -- -8
6 -6
Alternative C
2 -2
0 .0
0 200 400 600 800 980Scale for reading
mileage of road
under alternative A.
1198 950 710 470 220 0 Scale for reading

mileage of road
under alternative C.
Note; The total discounted cost of constructing any mileage between 0 and the total
system mileage, discounted at 8% over 10 years, for alternative A and alternative
C, may be read from the graph.
Conversely, where a known sum of money is available, the mileage of road
that can be constructed and maintained for this sum, partly constructed as
under alternative A and partly under alternative C, may be found.
- 44
-
Part One
Section 3
Another alternative is that of constructing
part of the system under Alternative A,
bitumising, and the remainder under Alternative C,

complete gravelling.
At the detailed design stage, when the soil
tests and surveys have been completed, it
can then be determined to what alternative
standard each section of road should be

constructed
-
The facing graph shows the range of total
cost over a 10 year period given different
mileages of road constructed under Alternative A

and Alternative C. Since Alternative A allows
a reduction in total mileage due to route
shortening, whereas Alternative C does not,

it has been assumed that the mileage of the
whole system increases pro-rate as the choice
moves from Alternative A, towards Alternative C.
The construction costs in this graph have

been discounted at 8% to bring them in line
with other cost calculations in this

report.
GRAPH SHOWING TOTAL CONSTRUCTION AND MAINTENANCE COSTS
FOR ALL AREAS OVER 20 YEARS (FROM 1968/69) FOR ROAD NETWORKS
CONSTRUCTED UNDER ALTERNATIVES A AND C AND ALSO FOR
NETWORKS CONSTRUCTED PARTIALLY UNDER ALTERNATIVE A, THE
REMAINDER UNDER ALTERNATIVE C; COSTS DISCOUNTED AT 8%.
20 - T- 20
TOTAL
CONSTRUCTION
AND 18- Network constructed
remainder partiallyC. under alternative A' -18
under alternative
MAINTENANCE
COSTS OVER 16 - --
20 YEARS
DISCOUNTED
14
AT 8%
12- - - -- - - - - - - - - -- -- - - - 12
M -Alternative A M
10- -10
ALTERNATIVE ALTERNATIVE
C A
8- - -- - - --- 8
6- Alternative C
-
0 0
r
mileage of road
under alternative A.

mileage of road
under alternative C.
Note: The total discounted cost of constructing any mileage between 0 and the total
system mileage, discounted at 8°. over 20 years, for alternative A and alternative
C may be read from the graph.
Conversely, where a known sum of money is available, the mileage of road that
can be constructed and maintained for this sum , partly constructed as under
alternative A and partly under alternative C, may be found.
- 45
-
Part One
Section 3
The costs of constructing any mileage less than

the total system mileage for the Alternatives A
and C can also be deduced from the graph.
The graph facing this page shows similarly the

total construction and maintenance costs for
Alternatives A and C, discounted at 8%, but
over a 20 year period instead of 10 years.
As with the 10 year graph referred to above,
the discounted cost over the appropriate
period for any mix of Alternatives A and C
may be found. Similarly, the discounted
costs of providing any mileage less than
the total system mileage for the Alternatives
A and C may be deduced.
It may be seen from these graphs that taken over

10 and 20 years the cost difference between
totally implementing Alternative A or Alternative C
is comparatively low. In particular, the 20 year
graph facing this page shows that the overall
cost difference is only about 14% between the
choice of having the whole network bitumised
(Alternative A) as compared with gravelling
(Alternative C).
COMPARATIVE CONSTRUCTION AND ANNUAL MA!NTENANCE COSTS
FOR EACH AREA FOR ALTERNATIVE TYPES OF ROAD DEVELOPMENT
Construrcion cost for Annu9l Iat oensnwe cosr for

Improved Complere Selecrv i Minimal Improved C mpIeone ble ev Minima
Roads Gravelling Mainre- mainte- R ,dy aw eI ing Maire- Minne-
Area (Alternative (Atternat[ e nance nonce (A lre ar i e (Alrernartve -ncne rAnWe
A) C, (Alrernacive (Alternatie A) Ci (Alcernanve niternacive
£m- £m D) B) D) B)
tm
Abprdares 384 1 139 6/,000 84,500 16500 15,00
hiint Kenya 1 98 0.386 - 33,900 157,900 53,000 5,150

South
Meru l 73 0-355 - 3j,900 127,400 42,500 6,5)0
Ke r iPho 222 0 360 - 59,700 127, 700 42,600 7,650
Kisit 317 0 L45 - 72,200 160,,00 53,500 9,25O
Nandi /Kakamega 3 18 0 529 - - 7,600 182,100 60,700 10,500
Sub-Total 16 12 3.214 341,300 1,240,000 413,800 54,600
Kisii (extension) 1-82 0 281 0,052 0-052 0,900 91,000 30,300 5,250
-7 il arTea=s) o, -z i- zl:"- " - in z n - -3 i, O--z-1O ii__________-

T7 1 1794 3.495 0052 0.052 382,200 t,331,000 444,100 59,850
(all areas)
- 46
-
Part One
Section 3
3.5 Costs and Benefits
3.5.1 Construction and Maintenance - The total costs

each See Part Two
of road construction and maintenance in
3.6.1
area in accordance with the development plans 3.6.2
are given in the facing table.
The costs of construction for the improved
roads, Alternative A, are calculated on
11" assumed pavement thickness for the
greater part and 8" pavement thickness on
the remainder. Upon detailed design of the
improved roads and further soil tests, it
may prove possible to reduce these
specifications for some sections of road,
particularly West of the Rift Valley.

ROAD CONSTRUCTION & MAINTENANCE COSTS FOR ALL
AREAS FOR THE FOUR ROAD DEVELOPMENT PROGRAMMES

(Excludes Kisii Extension Area)
IMPROVED ROADS - CASE A
5
TOTAL
ANNUAL
COSTS
IN
£ m.
p.a. 4
COMPLETE GRAVELLING - CASE C
SELECTIVE MAINTENANCE - CASE D

1
MINIMAL MAINTENANCE -- CASE B
6869 70/71 72173 74,75 716/77 78/79 80/81 82183 81T85 86/87 88189 90/91 92/93 94/95
YEAR
Part One
Section 3
The year-by-year construction and maintenance
costs are shown graphically on the facing page.
3.5.2 Traffic Counts - During the Phase II tea road
construction Edwards and Burrow, the See Part Two
3.6.3
Consulting Engineers responsible for the
scheme, carried out traffic counts on roads
throughout the seven main tea-growing areas.
These counts have been made available to
us and form the basis for our future
traffic projections within the tea areas.
To calculate the volume of through traffic
from Nyeri to Nairobi that might divert from
the old road via Thika to the new spine road
in the Aberdares, details of traffic movements
between Nairobi and Nyeri were obtained from
the Road Research Laboratory, based on a
traffic study undertaken by them in 1967/68.

- 48
-
Part One
Section 3
The average internal and through traffic figures

for each area are shown in the table below.
Average traffic figures in 1967/68

Area Internal Traffic Through Traffic
(Edwards & Burrows) (RRL)
Aberdares 45 v.p.d. 160 v.p.d.

Mount Kenya South 37 v.p.d.
-
Meru - Nyambene 30 v.p.d.
-
- Imenti 30 v.p.d.
Kericho 45 v.p.d.
-
Kisii 44 v.p.d.
Nandi 44 v.p.d.
-
Kakamega 60 v.p.d.
-
Kisii (extension) 44 v.p.d.
3.5.3 Traffic Growth and Composition - After consultation -
with the Road Research Laboratory, and the Ministry

See Part Two
of Works, a traffic growth rate of 10% per annum
was agreed upon for use in traffic projections in 3.6.4
all areas. This figure is assumed to apply to
traffic on all types of road in the areas. No
allowance has been made for generated or induced
traffic. A mix of 20% private cars and vans and
80% commercial vehicles has been assumed to apply
in the tea areas and 85% private cars and vans
and 15% heavy vehicles on the trunk road.
TOTAL SAVINGS IN OPERATING COSTS FOR
GENERAL TRAFFIC
CASES A, C and D, COMPARED WITH CASE B
(Excluding KISII Extension Area)
IMPROVED ROADS
CASE A
7
TOTAL
ANNUAL COMPLETE GRAVELLING
SAVINGS CASE C
IN 4
£m.
p.a.
SELECTIVE MAINTENANCE
CASE D
68/69 70 71 72/73 74/75 76/77 78/79 80/81 82/83 84/65 86/87 88/89 10/91 92/93 94/95
YEAR
- 49
-
Part One
Section 3
3.5.4 Vehicle Operating Costs - The vehicle operating

costs would apply for the different classes of See Part Two
vehicle operating on our alternative types of 3.6.5
road:
Road Research Laboratory investigations carried

out in East and Central Africa suggest the
following
COST IN CENTS/MILE
Weighted
ALTERNATIVES Heavy Light Average Ratio to
Vehicles Vehicles (80% heavy Case A
20% light
A - Improved Roads 117 80 110 1.00

B - Minimal Maintenance 226 154 212 1.93
C - Complete Gravelling 171 116 160 1.45
D - Selective Maintenance 202 140 192 1.76
3.5.5 Benefits to Other Traffic - Assuming the traffic growth

rate of 10% per annum and vehicle operating costs asSee Part Two
shown in the table above the annual savings to 3.6.6
general traffic running costs arising from the three 3.6.8
alternative road development plans A, C and D as
compared with the minimal maintenance plan B, are
shown over the period 1968/69 to 1994/95 in the
graph facing this page.
The benefits to the tea operations arising from the

improved road systems are dealt with in other
sections of the report.
- 50
-
Part One
Section 3
3.5.6 Benefits to other Agriculture - After discussions
with the Ministry of Agriculture, the Ministry of See Part Two
Economic Development and Planning and the Institute 3.6.7
of Development Studies at University College,

Nairobi, it is clear that there is inadequate
basic data available to quantify the benefits
to other agriculture due to improved roads in
the tea areas.
A good all-weather road network in these areas
will certainly hasten development of agriculture
in these fertile tea areas and encourage the

growing of cash crops. The benefits arising from
such developments will be substantial.
3.6 Control of Maintenance See Part Three
At present £50 per annum is allocated for maintaining each
mile of tea road. The local authorities are responsible
for the spending of £20 of this money, which they receive as

part of their annual block grant from the Ministry of Local
Government. Part of this sum is usually diverted to other
uses.
When the improved roads have been constructed, regular and

effective maintenance will be essential to protect the
large capital investment. If this regular maintenance is

not carried out, the surface of the roads will quickly
break up, water will enter the pavement, and very soon
the whole structure of the roads will begin to deteriorate.

- 51
-
Part One
Section 3
The present arrangement under which responsibility for
maintenance of the tea collection roads is divided
between K.T.D.A. and the Local Authorities clearly does

not work. K.T.D.A. is not equipped in terms of men,
material or machines to perform any large scale or

regular maintenance, and should not be called upon to
do so.
Whilst it would be possible for the local authorities to
carry out this maintenance, they have at present neither
the organisation nor the equipment to do so. To
safeguard the very large capital investment in the

improved roads, the responsibility should belong to
the Ministry of Works.
3.7 Concluding Remarks to this Section
Throughout the economic analysis of the alternative road
development plans, it has been shown that over a 20 years'
period, the improved roads, Alternative A, give the
greatest total cost savings and benefits. The relative
figures for benefits to other traffic only are:
Alternative A £8.6m,
Alternative C £1.7m.
Alternative D £1.3m.
Though the capital costs for Alternative A are the highest,
the maintenance costs and vehicle-running costs are low
as compared with the other three plans.

- 52
-
Part One
Section 3
If sufficient funds are not available to bituminise the

complete road system to the standard of Alternative A,
we recommend the compromise of bituminising part of
the system and constructing the remainder as for Alternative
C,
Taking the annual costs of construction and maintenance

under the alternative development plans, Alternatives A,
C and D, over 20 years, and discounting these at 8%,
show that over this period there is only a saving of
about 15% if Alternative C is chosen in its entirety
rather than Alternative A-
There is a very great urgency in the need for improved

tea roads- If they are not built and in operation
soon, there is a very real possibility that the third
tea development plan will not succeed,
It is recommended that the preliminary design studies be

authorised and put in hand as a matter of high priority-
K E N Y A
Kitaje CHERANGANI
% *Marafal
NANDIIKANAMEGA M
O Ki Thonsw Kenya
V FalHs.
~~~'AK'CA
e
*MERU
"Nyerie MT KENYA SOUTH
KSH ERIH~li 4 ADARES
NAIROBI
Mombasa*
FINAL REPORT

GREEN LEAF COLLECTION
April 1969
ANALYSIS OF ACTUAL LEAF COLLECTION COSTS 1967/68
(INCLUDING DEPRECIATION ALLOWANCES)
£Cents/lb % of
Cost Element
made tea Total
Collection vehicle costs including 73,875 16.62 52.1

Landrovers used for personnel transport
Collection staff salaries and 53,793 12.06 37.8

wages and related staff costs
Leaf collection equipment 3,408 0.78 2.4

(scales, bags, baskets, hessian)
Leaf Base buildings - maintenance 3,063 0.69 2.2

and depreciation
Stationery and VHF costs 2,852 0.64 2.0

(consolidated central charge to 11.0.)
Transport related costs

(spares stock, tools, workshop 1,560 0.35 1.1
materials)
Leaf office operating costs 1,515 0.34 1.1
Travel and subsistence

(Leaf Base staff - attendance at 640 0.14 0.4
courses, Nairobi meetings etc.)
Leaf Base office equipment and 517 0.11 0.4

house furniture
Other costs including fuel evaporation 757 0.17 0.5

and shortage, police escorts
Total £141,980 31.90 100.0%

- 53
-
Part One
Section 4
LEAF COLLECTION
4.1 Introduction
Once a grower has entered the scheme, one of the most See Part Two
important facilities which the K.T.D.A. provides is to 4.1
collect his leaf and arrange for its processing into
made tea.
The sheer geographical dispersion of growers and the

terrain over which leaf must be transported to the
factories demand an effective and flexible transport
system to collect a volume of leaf which varies from
season to season and from day to day. Leaf collection
and transportation are that part of the total system
which necessitates heavy investment in roads and has
a significant influence on the economics of tea
manufacture.
4.2 Analysis of Current Leaf-Collection Costs
Overall collection costs for the year ending 30th June,

1968, represent 31.9 cents per lb. of made tea. They vary
between the different Leaf Bases - from 24.4 cents per lb.
for Ragati to 52.8 cents per lb. for Kapsabet.
The facing table shows total leaf-collection costs under the

major cost elements. Vehicle operating costs and staff
costs represent the two major cost elements and account for
approximately 90% of total costs.
RELATIONSHIP BETWEEN COLLECTION VEHICLE COSTS & MILES RUN PER 1000 LB.
OF LEAF COLLECTED
35
Kapsabet
,
30
25
Meru
V 20 Chinga Mataara
15 .Litein
Kangaita
1 Nyankeba
10
Ragati
0
10 15 20 25 30 35 40
Miles run per 1000 lb. Leaf Collected
* Excludes Drivers' Wages

- 54
-
Part One
Section 4
The vehicle operating costs are primarily dependent upon

the geographical dispersion of the buying centres in
relation to the factories and are influenced by the
terrain and road condition on which the vehicles operate.
Staff costs are largely related to the number of buying

centres and the number of days on which the buying centres
are open, both of which are determined by the leaf yield.
The relationship between collection vehicle costs, in

cents per lb. of made tea, and miles run per 1,000 lb.
of leaf collected is presented graphically on the
opposite page and shows that the costs bear a consistent
relationship with the miles run. The vehicle operating
costs at Chinga Leaf Base were abnormally high during
the 12-month period due to high vehicle-repair charges.
4.3 Current Leaf Transportation See Part Two

4.2
63 vehicles were involved in leaf collection during
1967/68. By January 1969 the overall collection
fleet was 71 vehicles. Four-wheel drive vehicles
are used in all areas, supplemented by two-wheel
drive units in Kericho and Kisii where steep
gradients are encountered less frequently,
SUMMARY INFORMATION ON COLLECTION VEHICLES
CURRENTLY IN USE
Number in use Average mileage Average

Vehicle Type 1967/68 Jan.1969 per vehicle operating cost
1967/68 per mile
1967/68*(cents)
4 ton 36 44 13,700 222

4-wheel drive
5 ton 2 2 11,600 129

2-wheel drive
3 ton 6 6 12,500 154

2-wheel drive
Jeep or equivalent 7 7 7,100 244

4-wheel drive
Agricultural 2 2 (433 hours) (1090 cents/hr.)

tractor and trailer
Landrover 1 1 8,100 168

(forward control)
Landrover (used for 8 8 14,700 91

personnel transport)
Pickup 1 1 10,700 63
2-wheel drive
Total 63 71 785,700
*excludes drivers' wages

- 55
-
Part One
Section 4
The facing table shows the type of vehicles in use and

the related mileage and cost information. Average
mileage of four-wheel drive lorries during 1967/68
was under 14,000 miles - low by commercial transport
standards, for three reasons
. low utilisation caused by seasonal and

monthly peaks of leaf delivery;
. restricted operating hours caused by the

daily pattern of delivery of leaf to the
buying centres by the growers;
. low average operating speeds due to

gradients and road conditions.
4.4 Future Leaf Transportation
4.4.1 General - Cost advantages associated with the See Part Two
operation of large factories of up to Sm. lb. 4.2

capacity are set out in Section 5. Reliable
and economic road transportation of leaf on
the scale required by a factory of this
capacity would be impossible without improved
road networks developed to all-weather
standards.
COST AND PERFORMANCE DETAILS OF ROAD VEHICLES CONSIDERED FOR
FUTURE LEAF TRANSPORTATION*
Estimated Capital Operating costs Operating Loading Unloading Turn round

Vehicle Type leaf capacity cost Fixed Variable speed rate rate time
(lb) () (F/yr) (cents/mile) (mph) (lb/hr) (lb/hr) (minutes)
1. 4 ton 4 x 4 (current type) 6,000 2,650 412 210 8 3,000 6,000 65

2. Small rigid chassis 5,600 2,065 405 117 14 6,300 15,750 26
2-wheel drive
3. Large rigid chassis 8,500 3,055 474 163 12 6,300 15,750 37

2-wheel drive
4. Small articulated lorry 8,000 4,980 599 182 12 6,300 - 15

6. Landrover and trailer 3,300 1,963 370 117 12 6,300 - 10
7. Large van/pickup 3,000 1,762 362 102 17 6,300 15,750 20
8. Agricultural tractor and 5,500 2,167 320 133 8 6,300 - 10
large trailer
9. Agricultural tractor and 8,300 2,830 363 161 7 6,300 12
dual trailer
Note: Type 5 large articulated lorry excluded due to inadequate manoeuverability on tea roads,
Type 1 (current collection vehicle) included for comparative purposes,
Type 2 to 9 loading and unloading rates based on use of proposed leaf trays
Speeds and costs are based on operating on all-weather road surfaces - Alternatives A or C.
- 56
-
Part One
Section 4
In addition to developing a solution based on the

use of conventional road vehicles, we have
See Part Two
examined three novel forms of transport - aerial
cableways, helicopters, and hovercraft. Either 4.1
for reasons of high cost, performance limitations
or restricted commercial availability, we do
not consider these to be practicable transport
methods for the time period with which we are
dealing. A further important consideration is
that few general agricultural or social benefits
would result from a leaf collection system based
on the use of these unorthodox or inflexible
transportation methods.
4.4.2 Type of Vehicle - The condition of the road

network dictates the type of vehicle which will
form the basis of the transport system. Under
the alternative road development plan B (ninimal
maintenance) and D (selective maintenance)
transport arrangements must continue to be based
on the use of 4-wheel drive vehicles. Under
Alternatives A (improved roads) and C (complete
gravelling), 2-wheel drive vehicles would be
suitable.
The facing table contains cost and performance

data for a range of vehicles currently available
in Nairobi which were considered to be generally
30 - 31.9
CURRENT COSTS & TYPICAL TRANSPORT & TOTAL COLLECTION
COSTS FOR FACTORIES OF 2m. lb. TO 8m. lb. CAPACITY
25 (Current Costs 4 WD Vehicles)

(Typical Costs 2 WD Vehicles) 25
20 20
16.6
Total Collection Costs

15 15
Cents/lb. Cents/lb.
made tea made tea
10 10
4WD Transport Costs

2WD
2WD
2WD
2WD
5 2WD 5
2WD
2WD
1.0 to 1.4 21
2 3 4
1 5
5
6
6
7
78
(Current)
Costs Factory Capacity (m. lb. per annum)
- 57
-
Part One
Section 4
suitable for leaf transportation. This data formed

part of the input for the computer simulation,
by means of which we were able to decide the
type of vehicle which offered the lowest cost
solution and the way in which these vehicles
could be utilised most effectively.
Type 2 and type 3 vehicles (rigid chassis,

2-wheel drive diesel-powered lorries) generally
produce the lowest transport costs for factory
sizes between 2m. lb and 8m. lb. annual capacity.
Agricultural tractor and trailer units rivalled
the lorries only in the case of 2 to 4m. lb.
factories where the average distance from the
factory to the buying centres was low.
By 1981/82, with factories at or approaching

5m. lb. capacity, with a collection system
based on the use of vehicles of these types,
collection costs could range between 12.8 cents/lb.
in the Aberdares and 22.0 cents/lb. in Nandi/
Kakamega, an average of 15.0 cents/lb over all
areas.
The relationship between factory size and collection

costs associated with the operation of vehicle
types 2 or 3 is shown opposite.
- 58
-
Part ONe
Section 4
The truck we recommend is a conventional, forward

control, two-wheel drive, diesel-powered rigid
chassis unit, with extended wheelbase to give
maximum leaf capacity and fitted with a simple
flat, steel load platform and a light roof
structure. The engine should develop a minimim
of 90 gross BPH and a 5-speed synchromesh
gearbox should be fitted.
On the basis of quotations supplied we set out

below the outline specification of the best
quotation received.
Capital cost £2,236
Gross vehicle weights

(includes body and max. load) 22,400 lb.
Green leaf capacity

21'6" body, designed for use with 6,370 lb.
leaf trays described later in this
section
Engine - max. power output 107 gross BHP
Fixed cost per annum

(including driver and interest charge) £404
Variable operating cost 137 cents/mile

(including depreciation) or 48.2 cents/ton mile
Fitted with trip recorders to
provide data on scheduling and
utilisation
We have not attempted to predict the designs and

costs of vehicles which may become available in
the future.
- 59
-
Part One
Section 4
4.4.3 Programmes of Vehicle Requirements - Projections

of vehicle requirements are based on the number
of vehicles which will be needed to collect See Part Two
leaf on the anticipated peak day of the year, 4.2
and include spare vehicles in the ratio of
1 : 8, Some 75% of these peak requirements
would be capable of collecting the leaf on
all but three days of the year. However,
because of year to year variations in leaf
yield, which could be up to 20%, and the
relatively large amount of leaf involved
over the peak period, our figures show
vehicle requirements to meet peak conditions
with the expected leaf yields.
Specific requirements under each of the four

road development programmes are as follows:
Road Development Programme A - Improved Roads
- Progressive transition to 2-Wheel drive vehicles

as road construction is completed.
4-wheel drive (4WD) units retained until 1971/72 See Part Two
when 2-wheel drive (2WD) units can be introduced
progressively until 1975/76 when all areas 4.2
will operate 2WD fleets.
By 1975/76 approximately 154 2WD vehicles will

be required, rising to 196 by 1981/82.
TOTAL VEHICLE REQUIREMENTS
ROAD DEVELOPMENT PROGRAMME A - IMPROVED ROADS
(INDEX: 1967/68 = 100)
INDEX S00
700-
Forecast Made Tea Production
600
400 183
Maximum Number of 4 WD 169

300 Vehicles assuming no progressive 154
transition within each Area. -. wo,
102103 Showing minimum number of

20010 200 ..... 2 WD Vehicles assumning no progressive
I ~ transition within each Area
100 -3
4 WD
_ _ _ _ 2 WD
196768 68/9 69170 701 71/2 72 3 73 4 74(5 756 76 7 77/8 78 9 79 80 80 1 81/2
Forecast Production (m. lb.) 8.9 10.1 13.5 17.5 22.2 27.6 33.6 40.5 48.4 54.9 59,8 63.2 64.9 65.8 66.2
Number of Vehicles 4 WO 7 7 7 T R A N S IT 0 N-
2 WD 46 56 95 P E R I0 D 154 169 179 186 193 196 196
NOTE: Shaded area shows probable pattern of total vehicle requirements during transition period
- 60
-
Part One
Section 4
The graph facing this page shows the projected

number of vehicles required year by year to
1981/82. As sections of the road network are
completed, 2WD units will be introduced and
therefore during the transition period, both
2WD and 4WD vehicles will be operating. We
have indicated on the graph the probable pattern
of total vehicle requirements during the
transition period.
Prior to the construction of the improved road See Part Two

network in each area, increasing transport 4.2
difficulties will be encountered during the
wet periods due to the progressive deterioration
of the road surfaces caused by the combined
effect of increasing traffic and minimal
maintenance.
We estimate that maximum transport disruption

will occur in the year 1971/72 in all areas
except Meru, where 1970/71 will be the critical
year.
To keep leaf loss to an acceptable level,

special transportation measures will need
to be implemented during the rainy seasons.
Although it is impossible to predict the actual

road condition and the special transport measures
required, we estimate that a combination of
additional 4WD units and crawler tractors in
assistance represents the most economic and
effective interim transport system. Probable
requirements will include the use of four
additional 4WD units for every ten in the
basic fleet, supplemented by crawler tractors
of the Caterpillar "D4" type in the ratio
of one to every seven 4WD units. In the year
1971/72 these special measures are estimated
to increase transport cost by approximately 45%.
ROAD DEVELOPMENT PROGRAMME C - COMPLETE GRAVELLING

(INDEX: 1967/68 = 100)
INDEX g00
700-

600
500
400 -9 205 211 21
186
174
300 159
14
125
200 - 102
63
100
-
-4 WD 04
2 WD
1967168 68/9 69/70 70,1 71i2 72,3 734 74i5 7516 76 7 77,8 78 9 79 80 80 1 i
Forecast Production (m. lb) 8.9 10.1 13.5 17.5 22.2 27.6 33.6 40.5 48.4 54.9 59.8 63.2
j
64.9 65.8 66.2
Number of Vehicles 4 WD 46 56 15 T R A N S I T N 0
2 WD 7 7 7 P E R I OD 125 141 159 174 186 196 205 211 215
- 61
-
Part One
Section 4
Road Development Programme B - Minimal Maintenance
- Continued use of 4WD vehicles plus special

transport measures during the wet periods.
Our computer print-out shows that by 1981

approximately 329 4WD units will be required
as a basic fleet.
Special wet-weather measures would be similar See Part Two

to those outlined in Case A above - a
4.2
combination of increased 4WD fleet size and
the use of crawler tractors. Actual
requirements could be as much as an
additional seven 4WD units to every ten in
the basic fleet, supplemented by crawler
tractors in the ratio of one to every six
4WD units. Therefore, actual collection
vehicle requirements are likely to be
considerably higher than the 329 indicated
by the computer. In 1973/74 we estimate
that the cost of these special measures
could increase transport costs by
approximately 75%.
Road Development Programme C - Complete Gravelling
- Progressive transition to 2WD vehicles after See Part Two

initial gravelling programme is completed.
4.2
4WD units retained to 1970/71 when 2WD units

are introduced progressively. By 1973/74
all areas operating 2WD fleets. 125 2WD units
will be required in that year rising to 215
by 1981/82.
The graph facing this page shows the projected

number of vehicles required year by year to
1981/82.
ROAD DEVELOPMENT PROGRAMME D - SELECTIVE MAINTENANCE
(INDEX: 1967/68 100)
INDEX 800
700 .-
38 325 329 329

600308
280
500
-
242
400
78
300 - 43
200
100 53
ALL 4 WD
0
1967/68 68/9 69/70 70/1 71,2 72/3 73/4 74/5 75/6 76/7 77/8 75/9 79,80 8011 812
Forecast Production (m. lb.) 8.9 10.1 13.5 17.5 22.2 27.6 33.6 40.5 48.4 54.9 59.8 63.2 64.9 65.8 66.2
Vehicle Requirements
I
53 63 88 105 112 143 178 212 242 280 308 318 325 329 329
(all 4 WD)
- 62
-
Part One
Section 4
It is likely that special transport measures

will be required prior to the commencement of
the initial gravelling programme.
Road Development Programme D - Selective Maintenance
- Continued use of 4WD vehicles.
Total vehicle requirements will rise to 329 by

1981/82.
Special transport measures required in addition

to the basic 4WD fleet will be of a limited
nature.
4.5 Green Leaf Containers See Part Two

4.3.1
4.5.1 Current Types - Sisal bags of 25 lb. leaf
capacity are used currently. Mesh baskets
were previously used, but proved to be costly
due to limited life and subjected the leaf
to considerable pressure thereby causing leaf
deterioration.
Sisal bags are an improvement on the mesh

baskets, but have the following disadvantages:-
Leaf deterioration - due to compaction

limited air circulation and poor
protection from physical damage;
Vehicle loading and unloading inefficiency

-
due to the methods and physical effort

involved;
. Limited storage capacity at the buying

centres - bags cannot be stacked one
above the other, they are spread out
over the floor space;
Specialised collection-vehicle design

-
which increases cost and weight.

- 63
-
Part One
Section 4
4.5.2 Alternative Leaf Containers - Experiments See Part Two

on leaf storage described in our First Progress 4.3.2
Report suggest a new leaf container

as follows
. Rectangular tray with vertical sides

(3'10" x 2'10" x 12" deep) and evenly
spaced small holes or apertures in
the base, sides and ends; with a
green leaf capacity of 60 - 70 lb;
. Rigid, as light as possible (preferably

under 20 lb.)
. Capable of being firmly stacked one

upon the other, seven high, although
there must be good air circulation
between the stacked trays;
. Capable of being stacked one inside

the other when empty;
. Robust, capable of withstanding severe

handling in the field;
. The tray should have some form of hand-

grips (which should not protrude) to
permit handling by two men and also some
means of attaching a sling for movement
within the factory.
Wood and mesh trays appear to be suitable as an See Part Two
interim measure and for trial purposes, but 4.3.3

injection moulded plastic trays should ultimately
prove superior, provided adequate research and
development takes place.
Costs are likely to be of the order of 80/- to

100/- per tray.
The proposed trays overcome many disadvantages See Part Two
of the iisal bags. They can be stacked 7 high 4.3.4

on pallets on the lorries and unloaded at the
factories using fork lift trucks.
INFORMATION ON BUYING CENTRES
FOR 1967/68 - BY AREA
Area District 1967/68 Number Mean Through- Mean Distances

or Settle- Leaf of B.C. put/B.C. To Between
ment Area Yield Factory B.C.'s
(m. lb.) ('000 lb.) (miles)
Aberdares Kiambu 3.82 27 141 4.0

Muranga 3.24 26 125 5.0
Nyeri (part) 4.46 18 248 2.8
11.52 71 162 16.6 4.0
Mt. Kenya Nyeri (part) 4.68 16 293 2.6

South Kirinyaga 4.82 16 301 2.9
Embu 0.99 7 141 5.0
10.49 39 270 10.2 3.2
Meru Imenti 2.29 14 163 2.2

Nyambene 1.49 7 213 1.7
3.78 21 180 28.0 2.0
Kericho Kericho 5.43 61 89

Chepsir 0.03 1 3
(Sett.)
5.46 62 88 14.0 3.0
Kisii Kisii 5.62 46 122

W. Sotik 0.45 6 75
(Sett.)
6.07 52 117 11.7 3.1
Nandi/ Nandi 1.44 13 111

Kakamega Kakamega 1.03 24 43
Lessos 0.18 1 180
(Sett.)
2.65 38 70 16.0* 6.2
Cherangani/ Cherangani 0.04 4 10

Marakwet (Sett.)
Marakwet 0.01 1 10
0.05 5 10 40.0 3.0**
All Areas 40.02 288 139 15.5
* This figure is variable as leaf from particular buying centres may not be
delivered to the same factory.
** Approximate figure.
- 64
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Part One
Section 4
4.6 Current Buying Centres
4.6.1 The Current Situation - 288 buying centres See Part Two
were operating in 1967/68 and handled a 4.5
total leaf throughput of just over 40m. lb.
Average throughput per buying centre was

139,000 lb. in the 12-month period, although
in Kirinyaga District (Mount Kenya South)
the average was over 300,000 lb. One buying
centre in this area collected 746,000 lb.
The overall average distance between the buying

centres and the factories which they normally
supply was 15.5 miles and ranged between 10.2
miles (in Mount Kenya South) to around 40 miles
for the rather atypical situation in the
Cherangani/Marakwet area.
Details of buying centre throughput and related

distances are presented in the facing table.
4.6.2 Buying Centre Operations - We have studied See Part Two

the variability in daily deliveries of 4.5
leaf throughout the year, and the variation
in throughput at different times of the
day.
GRAPH OF DAILY LEAF DELIVERIES TO CHINGA
FACTORY DURING 1967/68
Showing Mean (shaded area) and Range ( red bars)

of Weights for each Month
60
55
50
45
40
35
Leat
('000 lb ) 30
25
(21.2)
20
15
10
July A S 0 N D J F M A M June
Daily delivery:
Mean 11.3 18.2 27.9 26.0 20.2 25.6 16.4 14.7 22.9 33.5 17.6 18.0
Highest 19.4 36.7 44.5 37.0 33.0 48.5 22.4 29.1 34.0 57.0 28.0 26.0
Lowest 3.3 9.9 12.5 10.4 6.3 6.9 8.4 5.5 9.6 12.7 12.5 13.8
Number of
Colcindy:1 17 1s 22 24 26 22 26 17 18 22 25 24
- 65
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Part One
Section 4
Fluctuation in leaf throughput at the buying

centres occurs:-
Seasonally - East of the Rift, total See Part Two

leaf deliveries during April are 4.4.1
approximately 41% higher than the mean;
West of the Rift, leaf deliveries
during December and January are
35% above the mean. These peak
yields occur during and immediately
following the wet seasons.
Daily - At Chinga factory daily See Part Two

deliveries during 1967/68 ranged 4.4.2
between 65% above, and 56% below
the mean. The weight of leaf
delivered to this factory on
any one day ranged between 3,300 lb.
and 57,000 lb, There were 104
days during the year when no leaf
was collected.
The graph facing shows details of

leaf deliveries to Chinga factory
in 1967/68. Reasons for these
variations include local day-to-day
weather conditions, the system of
first payments to growers, scheduling
of leaf collection services.
Hourly - Buying centres normally See Part Two

open by 11.00 a.m. and may be manned 4.4.3
until 4.00 p.m., depending on the
time the collection vehicle arrives.
Deliveries to buying centres during
the day tend to conform to a general
pattern. Little leaf is delivered
before midday, most arriving between
1.00 p.m. and 3 p.m. This compression
of the delivery period leads to
congestion and queuing in the buying
centre and restricts the rate of leaf
intake.
- 66
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Part One
Section 4
4.6.3 Capacities - Factors which tend to restrict the See Part Two
buying centres' capacity to handle peak leaf 4.6
deliveries are:- . 4-7
. At many centres, the lack of adequate

inspection space;
. The excessive degree of manual effort

involved in the weighing of leaf and
the growers' containers;
. The current procedure of filling each

sisal bag with exactly 25 lb. of leaf;
(Of the total time the scales are in
use, roughly half is associated with the
second weighing into the sisal bags.)
Lack of floor space due to the storage

of leaf which reduces the available
working area in the centres.
It can be said that adequate inspection is

impossible at present when daily deliveries to
buying centres exceed 3,000 lb. At this relatively
early stage of the Authority's operations, and
while growers are in the process of learning the
disciplines of efficient tea production, it is
vital that the established leaf quality standards
are rigidly observed.
4.7 Future Buying Centres See Part Two

4.6
4.7.1 Capacities - Our studies of buying-centre operations
suggest that the annual capacity of a buying
centre is 600,000 lb. - equivalent to approximately
133,000 lb. of made tea.
INFORMATION ON PROJECTED BUYING CENTRES
IN 1981/82 - BY AREA
1981/82 Mean Inter B.C. Mean Distance

Area Leaf yield Number of Distance to Factories
Ald B.C. 2m. lb.* 5m. lb** 2m lb. 5m. lb.
(miles) (miles)
Aberdares 82.5 138 2.3 1.2 5.1 5.7
Mount Kenya
South 43.7 74 1.4 1.2 3.7 6.5
Meru - Imenti 18.2 30 1-9 1.7 4.6 7.7

" - Nyambene 11.9 21 3.6 1.9 11.0 8.9
Kericho 48.6 82 2.4 1.9 5.6 7.5
Kisii 60.2 103 3 2 3.2 6.5 11.7
Nandia and
Kakamega 26.9 106 2.0 1.9 5.0 11.3
All Areas 292.0 554 2.3 1.9 5.3 8.4
Note: (i) Information on the 7 buying centres in Cherangani/Marakwet

are excluded because of the typical situation which exists.
(ii) Inter buying centre distances for Nyambene are lower than the
above figures if road mileage outside the actual tea growing
area is excluded.
* Refers to solution based on road programmes B and D.
** Refers to solution based on road programmes A and C.

- 6?
-
Kenya Tea Development AuthoriTv Final Report
Part One
Section 4
We have used the figure in all our calculations
to determine future numbers of buying centres,
except in the Nandi/Kakamega area, where we
have permitted an increased number in order to
ensure that all growers in the area have
reasonable access to a buying centre-
4.7.2 Numbers and Locations - The numbers of buying See Part Two
centres in each area have been predicted on 4.6
a district basis with two principal
factors in mind. First, che capacity figure
of 600,000 lbs.mentioned above; secondly,

it was assumed that the numbers of buying
centres would not increase until all existing
ones were operating at maximum capacity.
This assumption is of minor importance in
our cost calculations, since the costs

associated with buying centres are low in
relation to total leaf-collection costs.

Moreover, the expansion in tea output is so
rapid that almost by 1981/82 no grower should
be more than a straight line distance of

l miles from a buying centre.
The facing table presents information on the

projected buying centres in 1981/82.
- 68
-
Part ONe
Section 4
4.7.3 Design - Design requirements for buying centres

stipulated by the Authority are generally See Part Two
sound. In actual practice some established 4.5
centres are of inadequate construction in
terms of size and provision of leaf-inspection
space. We noted significant regional
differences in the willingness of local
growers to erect suitable buying centres.
The main dimensions and design features of

the proposed buying centres include:-
Minimum length - 40 feet.
Minimum width - 15 feet, in view

of the possible need to use a central strip
for leaf storage.
Minimum of 180 sq.ft. of leaf inspection

space.
Leaf storage area of 120 sq.ft. to

accommodate the basic storage requirement
of 3,250 lb. (50 trays). For peak
delivery periods, a further storage
area of 60 sq. ft. to be available between
the laterial inspection areas.
4.7.4 Equipment and Procedures - Major departures from See Part Two
current equipment and procedures are:- 4.6
Use of floor level scales,
Introduction of leaf trays,
Discontinuance of the "second" weighing.
We estimate that the above revisions to equipment

and procedures will significantly reduce the work
content involved in all weighing, storage and
general leaf handling activities by over 30%.
LEAF BASE COSTS - 1967/68
Leaf Leaf Base Leaf Made Tea*

Leaf Base Collected Costs (cents) (cents)
(m. lb.) (£
Nyankoba 6.06 5,700 1.9 7.9
Chinga 5.91 5,195 1.8 7.9
Mataara 5.65 5,657 2.0 9.0
Letein 5.45 5,708 2.1 9.2
Ragadi 5.29 5,919 2.2 10.1
Kangaita 5.23 4,720 1.8 8.1
Meru 3.78 4,778 2.5 11.4
Kapsabet 2.64 5,333 4.0 18.2
Kitale 0.05 565** 22.6 101.8
Total 40.06 43,575 2.2 9.8
* Assumes that all leaf collected is processed. Actual figures

would be slightly higher due to leaf loss and weight loss.
** No base is established. Collection is organised by the Tea Office.

- 69
-
Part Dne
Section 4
4.7.5 Costs - The £100 subsidy which KT.D.A. contributes

to the construction of a buying centre should be
continued as it will help to ensure that centres
meet the required standards.
The principal recurring cost at the buying centres

is the leaf collector's salary and related
costs (insurance, uniforms etc.) - £206 in 1981/82.
To cover leave and absence, we have assumed that
9 leaf collectors will be required for every 8
buying centres.
The approximate annual cost per buying centre is

thus £235 by 1981/82.
4.8 Leaf Bases

See Part Twc
4.8.1 Costs - The Leaf Base costs shown in the facing table 4.7
include the following major elements:-
Staff costs (roughly 55% of total)
Building and equipment maintenance

and depreciation
. Stationery and VHF wireless

transmitter costs (central charge).
- 70
-
Part One
Section 4
For the situation which will apply in 1981/82,

we have assumed that a leaf base will be attached
to each factory, except in the case of the
Cherangani/Marakwet area.
Factory capacity under road programmes B or D
is restricted to 2m. lb. and only limited changes
in Leaf Base staffing and procedures are
envisaged. The increased level of leaf throughput
will call for more effective scheduling of collection
vehicle operations. We estimate that leaf base
costs would be approximately £5,500 per annum See Part Two
representing 5.45 cents per lb. of made tea. 4.7
Road programmes A or C permit the use of

two-wheel drive vehicles with factory
capacities range between 3.6m. lb. and 5m. lb.
per annum. The number of vehicles attached to
these bases can be up to 17 two-wheel drive

units. At the larger bases, costs will be in
the order of £9,000 to £10,000 per annum
(approximately 3.8 cents/lb. made tea). The
increased scales of operations will call for

changes in staffing, namely:-
Appointment of an Assistant Leaf Office

at a cost of £800 per annum;
Appointment of a further Clerk at a

cost of approximately £330 per annum.
Additional artisans, watchmen and labourers have
also been included in our cost estimates.

RELATIONSHIP BETWEEN LEAF
BASE SIZE & COST - 1981/82
(Shown in Cents/ lb. made Tea)
Cents/lb.
11
10
-9.8
9
0
1.0 2 3 4 5 6 7 8
to
1.4 Leaf Base size (m. lb. made Tea)
Current
L.B. Cost
- 71
-
Part One
Section 4
The bar chart opposite shows the projected
relationship between leaf base size and costs
and clearly illustrates the lower costs, in
terms of cents per lb., for the larger bases.
4.8.2 Leaf Trays - The proposed use of leaf trays is See Part Two
a significant change from current methods. 4.3.3
Each vehicle attached to a leaf base will 4.3.4
have a complement of trays (98 for the
proposed two-wheel drive vehicle). The total
number of trays each leaf base must have

available is determined by the expected
leaf throughput on the peak day of the
year.
As each buying centre reaches its capacity of
600,000 lb. per annum,,it will require
approximately 95 trays to meet its peak
delivery of 6,000 lb. per day. Therefore
a total of approximately 56,000 trays,
including a 10% allowance for spares, would be
required in 1981/82 for all areas. One an
average day 19,000 trays would be in use.
Storage of unused trays should not present

difficulty as they can be stacked one inside
the other when empty.
- 72
-
Part One
Section 4
4.8.3 Transport Control - It will be important to ensure

that the vehicles attached to each base are operated
efficiently and that a centralised vehicle control
is maintained. Opportunities will exist for the
transfer of vehicles to different areas to meet
short-term and seasonal requirements.
In section 5 we have indicated the potential use

of collection vehicles for transport of made tea.
This warrants further investigation as a
means of reducing the total cost of the Authority's
operations.
We recommend that routine maintenance be carried

out at the leaf bases, and major services, repairs
and overhauls at specially equipped service depots.
One depot should be established at Nyeri, another
at Kericho. Each would carry a suitable inventory
of spares and major unit assemblies.
The vehicle distributors have suggested that they

would provide training facilities in Nairobi and,
as part of a vehicle sales agreement, would offer
technical advice. The BLMC distributors (Benbros)
have tentatively agreed to supply the depots with
major exchange units (engine etc.) and charge only
- 73
-
Part One
Section 4
when a unit is actually fitted to a vehicle.

Undoubtedly other major distributors would
offer similar facilities.
We feel it is essential that collection vehicle

maintenance is completely under K.T.D.A. s
control and from our provisional cost estimates
it would appear that the principle of centralised
vehicle maintenance at specially established
depots is economically viable.
K E N Y A
Kitaje CHERANGANI
It *Maralat
NANDI/KAKAMEGA m
Thwo Kenya
f O
£KerichA #-ar. MERU
*Ny KENYA SOUTH
KISII l ASERDARES
0 NAIROBI
Mombasa
FINAL REPORT

TEA MANUFACTURE AND DISTRIBUTION
April 1969
COST BREAKDOWN OF MADE TEA FROM
KANGAITA FACTORY 1967/68
Total cost is 362.5 cents/lb. of which:-
The grower takes 31%
K.T.D.A. takes for

development, transport etc. 21%
Manufacturer takes
for labour 1.5%
fuel, power 5.5%
overheads and
maintenance 16%
packing 4% 27%
Transport costs
to Mombasa 1.5%
to London 5%
in charges, interest
and insurances 3.5% 10%
Selling costs
in warehousing 4.5%
commissions,
brokerages and
discounts 6% 10.5%
The Tea Board Levy .5%
100%
- 74
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Part One
Section 5
MANUFACTURE AND DISTRIBUTION
5.1 Introduction
The constituent costs associated with making, distributing

and selling K.T.D.A. tea, are given in the table opposite.
The figures are estimates based on actual costs of the
Kangaita factory for the financial year 1967/68, during
which the output of made tea was 1.1 million lb.
It will be seen that the factory costs, with which we

are primarily concerned in this part of the report,
represent a little over one quarter (27%) of the total
cost. The design of the factory and its organisation can
influence many of the cost sub-headings within this
27%; methods of packaging for transit to London could
influence others; matters affecting quality control
benefit the final selling price. Out studies concerning
all of these matters are described in this section of
the report. Summarised, the effects of our proposals,
if fully implemented could show:-
A reduction in manufacturing costs, compared

with the smaller factories envisaged under
the Third Plan, from 86.3 cents per lb. to
77.6 cents per lb., i.e 8.7 cents per lb. or
approximately £290,000 per year at the 1981
rate of production. If tea output after
1981/82 increases beyond the Third Plan forecast,
more factories will expand to 5 million lb.
capacity and the saving in manufacturing costs
could well be as high as 14 cents per lb.
The possibility of a significant reduction in

packaging and transit costs through the use of
bulk containers, although this needsto be further
evaluated in detailed discussions with U.K. tea
blending companies and interested parties;
TEA MANUFACTURE
BASIC PROCESS
Acceptance
LEGEND
Weighment C
Withering
Sitting
Processing
Fermenting
Drying L
Sorting
Storage
Packing
Despatch
- 75
-
Part One
Section 5
The maintenance of at least an equal quality

reputation as is currently enjoyed by K.T.D.A,
production, but probably with greater consistency
than at present.
5.2 Factories
The sequence of operations in a typical K.T.D.A. processing

factory is shown diagrammatically on the facing page.
5.2.1 Type of Process - It has been assumed that the See Part Two
majority of K.T.D.A. teas will continue to be
produced by C.T.C./Rotorvane processing in the
conventional manner. Minor changes in processing,
e.g. the production of pure Rotorvane teas, will
have no significant effect on the type of
factory.
Production of 'instant tea', by spray drying or

freeze drying black tea liquors, would require the
provision of expensive additional equipment, and
any major breakthrough in direct extraction of the
essential constituents from green leaf could change
the whole processing plant. K.T.D.A. should
investigate the manufacture and marketing of
instant tea if this captures a significant
proportion of the major tea markets. We
recommend that major departures from the present
conventional approach to tea making be kept
- 76
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Part One
Section 5
under review, in order that the factory development
programme may be modified to take advantage of
improved techniques.
5.2.2 Special Factors - Because K.T.D.A. factories are
processing green leaf collected from a large

number of smallholders, distributed over a
relatively wide area, certain problems arise
which do not exist to the same extent on a
commercial tea estate. These problems include:-
A greater variation in the day-to-

day deliveries of green leaf to the
factories, because each grower decides
for himself when and how much leaf to
pluck,
The greater delivery distance and the

relatively short life of the leaf.
These factors can lead to the necessity for
rejection of a proportion of delivered
leaf, or to the manufacture of a poorer
quality tea, unless an adequate road
network is provided for the collection
vehicles.
The concentration of delivery of green

leaf to the factory into relatively
few hours in the afternoon and evening
of each plucking day. There is little
opportunity for planning deliveries
more evenly, as would be done on an
estate.
- 77
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Part One
Section 5
The cumulative effect of such problems as those See Part Two
listed above is that the factory must be 5.1.3
designed to handle a greater variation in
raw material input and to handle peaks greater

than those expected in a commercial estate
factory. The concept of normal daily hours of
working of the factory cannot be adopted.
It is necessary to provide adequate withering
capacity to deal with peak daily deliveries and
to operate the processing equipment i.e. dryers,
fermenting units, C.T.C./Rotorvanes etc. on
a variable time basis, to meet each day's intake
of green leaf.
The use of extended working, by the labour force

when necessary, is one contribution to the
flexibility needed to handle the variable leaf
intake. This arrangement necessitates provision
in any wages agreements that overtime is worked
as and when required by the Company. Casual
labour may be employed, in addition, on a day-
to-day basis, to supplement the regular labour

force.
FACTORY COSTS FOR FACTORIES OF DIFFERENT
CAPACITIES
Factory Estimated costs (Cents/lb. made tea)

Size
(million East of Rift West of Rift
lb. made
tea per Fixed Variable & Total Fixed Variable & Total
year) semi-variable semi-variable
2.0 52.3 33,5 85.8 52.3 30.8 83.1
4.0 42.4 32.2 74.6 42.4 29.4 71.8
5.0 40.4 32.0 72.4 40.4 29.2 69.6
6.0 39.8 31.8 71,6 39.8 29.0 68.8
8.0 37.9 31.4 69.3 37.9 28.6 66.5
Note: These costs do not include:
Cess (Tea Board levy);
Green leaf purchase;
Freight and despatch costs.

- 78
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Part One
Section 5
5.2.3 Cost versus Capacity - One of the first aspects See Part Two
we examined in detail was the relationship 5.1.2
between manufacturing costs and factory
capacity.
For this purpose we took the following cost
sub-headings and studied in detail the effects
on each as factory capacity increased:-
Overheads:
Management and supervisory costs;

. Insurance;
Directors' and managing agents' fees;
. Interest payments on debentures, shares
and income notes;
- Depreciation;
* Managing agents buying and selling
commission.
Production:
Manufacturing - fuel and power;

. Manufacturing - labour
Packing;
. Maintenance.
Excluded from the costs are:-
. Cess (Tea Board levy);

. Purchase of green leaf;
- Freight or despatch costs.
These cost figures for tea factories of various
capacities are summarised in terms of cents per lb.
of made tea in the table on the facing page, under
the headings of fixed, and variable and semi-variable
costs.
- 79
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Part One
Section 5
Separate estimates have been made for factories

East and West of the Rift Valley because of See Part Two
differences in packaging, fuel and power 5.1.2
costs. Further details of factory costs are
given in Part Two.
It can be seen that the costs per lb. of made

tea reduce steadily with increasing factory
capacity and that major reductions occur in
factory capacities ranging from 2m. lb. to
5m. lb.
5.2.4 Design - Once green leaf has been plucked, the See Part Two
following factory operations must be completed 5.1.4
within a short time period (about 24 hours),
if tea of high quality is to be produced:-
. Withering;
. C.T.C./Rotorvane cutting;
. Fermentation;
. Drying.
When the above processes have been completed and

the tea is dry, i.e. with a moisture content of
less than 5%, it can be stored without rapid
deterioration. Cleaning, sorting and packing
can take place later. Drying is normally the
key controlling factory operation and it is
- 80
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Part One
Section 5
convenient to regard the number of dryers as
a measure of the factory capacity. For the See Part Two

purpose of costing and factory design, we 5.1.3
have assumed a conservative figure of
6 dryers for a 5m. lb. capacity factory,

each capable of 500 lb. per hour.
The factories must be designed to be capable
of expansion, over time, to match area

requirements, until they reach their ultimate
capacity. A suitable expansion plan is the
addition of one dryer per stage, plus whatever
peripheral equipment is needed to balance.
By developing the factory in stages, additional
dryer could be delayed or cancelled if, for
example, leaf delivery patterns changed or

technological advances improved the dryer
performances.
The processing building and the offices,
workshops etc. can be built to meet the
ultimate capacity, since the total area

required for these is not great, The withering
sheds, however, are relatively large in area,
and should be expanded in stages as required,

provided the overall site and design of
the factory allows for the total ultimate
requirments.
The factory should be of single storey design for
the processing sections, and single or double
for the withering sheds.

TEA FACTORY
Schematic Layout
WI THERING TROU GH
HEATE EI
If- W IGHM NT WE113HMEINT
2 .'
"N
A M
nfl [A 8 883 E8M88
I~
H 1% :WTHERING:
%
I'
.... ......
.....
......
A "N. ..... .T.TT.T,
_ _ _ _ _I LII I
NV
~AAA U Li
li. -Y . ..
'4ffi- T
XN
T
T...T.
-w
= T T..
WORKSHOP
T
FTING
GENERAL STORES
LEGEND
STORESS
Weighment
Withering
Sitting
]
CLERKS
dwa
MANAGER L
PROCE
FERMETIG
SING
I
-
TEAFACTORY
1'
-
M.T. STORE
I SCHEMATIC LAYOUT
Approx k,, Ft
bAty
Processing
BOxXMAKIN 7
I- ~ - M.T. WORKSHOP
Fermenting
SORTER.
Drying
III' STO RAG E
DRYING
Sorting
'77 U
Storage LIII PACKER
Th~IT czz==
Packing
DRIER HEAT ERS
I
- 81
-
Part One
Section 5
The design must allow a smooth flow of green
leaf through the processes of withering,
C.T.C./Rotorvane, fermentation and drying.
The plan on the facing page shows a schematic
layout of a tea factory of the type we envisage.
The main trunk of the "T" would be built complete
at the commencement, together with one wing of
the withering area. The factory would probably
be equipped with a quarter to a half of the

operating equipment shown, additional plant
being added as required and the withering area

extended to suit.
The results of the computer simulation have shown
that a 5m. lb. factory would need to be capable
of receiving and unloading up to six leaf lorries

in a half-hour period. We envisage therefore
that six unloading bays would be required and

that the unloading would be undertaken using
fork lift trucks.
5.2.5 Management - As the Tea Factory Companies become
larger, and K.T.D.A. itself has to oversee a much

larger system than at present, some changes in the
management structure may be needed. As far as
factories are concerned, the changes could include

- 82
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Kenya Tea Development Authoritv Final Report
Part One
Section 5
the recruitment of a factory expert for K-T.D.A.

with responsibility for examining the performance
of all K.TDA. factories and suggesting solutions
to problems concerning uniformity in procedures
and operating methods between the various managing
agents
Although the necessity for a factory inspectorate

is not great at present, it will arise over the
next few years and how this should be organised
with regard to responsibility, authority, etc,
should be studied in the near future.
The benefits of operating larger factories of the

5m. lb. type cannot be bought without some cost,
primarily in the form of new management problems,
Such problems are not particular to K.T.D-A. but
have to be borne in mind wherever large factories
producing a consistently high quality of tea are
to be developed and operated satisfactorily.
For example, the very size of the unit makes detailed

personal control by the manager more difficult than
with the present smaller factories of about 1.2m. lb
capacity,
It is, therefore, necessary to develop control procedures

for production and quality, written up in detailed
operating manuals so that the manager can delegate clear
- 83
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Part One
Section 5
responsibility to his subordinate staff. The calibre

of management required will consequently be fairly
high, with a significant administrative ability
required in addition to a knowledge of tea manufacture.
Although the processing plant is not highly complex

it needs technical staff, mechanics, electricians,
etc. either situated in the factory itself or
available from K.T.D.A. "area maintenance units".
To ensure an adequate supply of technicians, it will
probably be necessary to set up a maintenance training
school or arrange for suitable external training.
Perhaps the most significant of the problems associated

with the larger factory is the maintenance of quality
in the finished product. We, therefore, devote the
next section of the report to this particular factor.
5.2.6 Quality Control
Present methods to maintain a high quality include

personal sampling by the factory manager and tea maker,
plus regular reports on samples sent to brokers. The
reports from brokers are usually in purely quantitative
terms and it is sometimes difficult for the manager to
make a quantitative assessment of changes in the various
quality characteristics and their effects on the brokers'
valuation of the teas. In the short-term, the appointment
of quality control staff, experienced in tea tasting,
might be considered necessary. They would assess tea
- 8

Part One
Section 5
quality during manufaccure by the allocation of
quantitative assessments to the various quality
characteristics- Liaison with the independent
panel of tea tasters, mentioned later in this

section, who would be tasting samples of all
K-T.DA- teas, could provide the necessary
reference information to enable each factory
quality controller to (heck his own consistency.
In the long term, it would be extremely useful
if simple objective rests could be developed,
which could be carried out in the factory at the
time of manufacture - particularly if the results
of these tests can be correlated with brokers'
assessments and valuations The most promising
lines or investigation seem to be the work carried
out by Dr E A-H Roberts and his associates on
the chemistry of tea manufacture and the measurement
of some of he essential constituents of black

-.
tea liquors-
In one of the references given at the end of this
section, Dr. Roberts refers to a relationship,

established as a mathematical formula, between the
valuation of samples of teas and the tasters'
quantitative marks for colour, strength, quality
and briskness of these samples.

- 85
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Part One
Section 5
In the other paper, reference 2 below, he

concludes: "The replacement of traditional methods
of tea tasting by chemical analysis is not yet,
therefore, in sight, but it is claimed that the
methods described above should prove extremely
useful in supplementing a taster's report.
Analytical results, unlike a taster's evaluation,
are not affected by market fluctuations and are
much more suitable when it is desirable to maintain
records of the properties of teas manufactured.
The analytical method may also be expected to
be developed as a means of control during
manufacture".
We therefore recommend that an investigation into

the scientific testing of tea quality be authorised.
This would best be undertaken by someone with a
knowledge of organic chemistry plus a strong
practical bias. The terms of reference would be to
develop simple tests to be carried out on a routine
basis in the factory, during the process of manufacture,
and to specify the type and frequency of test to be
carried out at each stage of processing. In this way,
changes in made-tea quality likely to affect valuation
and hence prices obtained, can be detected in good
time and any necessary corrective action taken.
It may be necessary to provide spectrophotometric

equipment either in each factory, each area, or in a
central K.T.D.A. testing laboratory, depending on
the nature of the tests developed, the frequency of
testing required and the cost of the equipment and
facilities needed.
- 86
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Part One
Section 5
If the prices obtained for made tea were increased

over a year by only one penny or 7.2 cents per lb.
this would mean additional revenue of K£18,000 for
a 5 million lb. factory. This is greater than the
cost of its total labour force for the year. An
effective control system developed to help management
maintain high quality would thus undoubtedly be
worth while.
As an initial step it could be useful to set up

a panel of independent tasters, who would assess
K.T.D.A. tea samples in quantitative terms, as in
reference 1 below, to enable correlation to be
established with the scientific testing experiments.
References:
1. "The Chemistry of Tea Manufacture" E.A.H. Roberts

J. Sci. Food & Agric. 1958 Bo. 7 p.3 8 1-390.
2. Spectrophotometric Measurements of Theaflavins

& Thearubigins in Black Tea Liquors in Assessments
of Quality in Teas".
E.A.H. Roberts & R.F. Smith
Analyst: 86, No. 1019 p.9 4 - 98.
5.2.7 Control Information - At present the Tea Factory See Part Twi
Companies send three detailed returns each 5.1.8
month to K.T.D.A., as follows:-
Accounts Statements;
. Monthly Tea Sales Reports;
Monthly Progress Reports.
- 87
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Part One
Section 5
These reports provide useful information on the
operations of the factories, but could be improved
to allow comparison of the overall performance of

the factories operated by different managing agents.
A small working committee has now been set up by

K.T.D.A. and C.D.C. to consider tea factory reporting
and to discuss improvements in principle. As a next
stage, this committee will be widened to include
representatives of all the managing agents to work

out and agree future reporting procedures. These
procedures will include:-
. Agreed standardisation and definition of

each item reported so that like can be
compared with like;
. The reporting of all major items of

expenditure - not only collection and
manufacturing costs, but also distribution,
transport, and selling costs;
Some agreed form of 'inter-firm' comparison,

so that the performance of each factory
company can be compared and suggestions
initiated for improvements in operation,
where these appear to be beneficial.
As a start, a draft of a proposed form of quarterly see Part Twc

accounts for each factory has been prepared by the 5.1.5
K.T.D.A. Chief Accountant, R.D. Hughes, and is
shown in Part Two of this report.
The deliberations of this working committee on tea
factory reporting are aimed at answering two questions:-
. What do K.T.D.A. want to know concerning

the running of the factories by the managing
agents and in how much detail?
- 88
-
Part One
Section 5
Who is going to examine these reports and

what action will be taken as a result of
this examination?
This committee should aim to complete a standardised

and agreed working manual by say, the end of 1969,
working to a self-imposed time table so as not to
lose the present sense of interest.
5.2.8 Development Programmes - The development of new

and existing factories to meet the planned
increases in tea production up to 1981/82 is
discussed in detail in Part Two. The development See Part Two
programmes were determined solely for use in 2.2.1
discounted cash flow analysis and should not be
taken as action programmes because:-
. The detailed planning of factory expansion

should be done annually, using updated
forecasts of tea production.
. New factories need be planned only two

years in advance.
The programmes were based on various

assumptions concerning road improvement
and the initial capacities of new factories.
Very little account was taken.if the

logistics involved in the equipment and
construction of factories.
In fact there is scope for variations in the

development programmes we have determined and,
although these would have little effect on the
overall economic analysis, any action programme
should take into account the factors listed above.
TIMING AND LOCATION OF NEW FACTORIES
CASES A AND C
AREA NEW YEAR OF APPROXIMATE

FACTORY INTRODUCTION LOCATION
Aberdares Kiambu 2 1970/71 Kagwe

Muranga 1 1976/77 Ikumbi
Mt. Kenya Sth, Embu 1 1973/74 Kariari
Meru Imenti 1 1973/84 Kathera
Kericho Kericho 2 1971/72 Mogogosick

Kericho 3 1974/75 Kericho Town
Kisii Kisii 2 1971/72 Bundo Market

Kisii 3 1976/77 Kiamokama
Nandi/ Nandi 1 1971/72 Kapsabet

Kakamega Kakamega 1971/72 Margo Market
- 89
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Part One
Section 5
The facing table shows the timing and location

of new factories determined for the economic See Part Two
analysis, for those road development alternatives 2.2.1

that permit the operation of 5m. lb factories.
5.3 Distribution
5.3.1 Alternatives to Tea Chests - The cost of tea See Part Two
chests to the K.T.D.A. factories varies, 5.1.5
depending on the size of chest used and the
distance of the factory from the suppliers.
In addition, the packaging cost per lb. of
made tea depends on the weight of tea of the
particular grade, which is packed into a
chest of a given size.
In all cases the cost of chests is a significant

proportion of the total manufacturing costs -and
any reduction in the cost of made-tea containers
would have a real effect on these costs. For
example: a tea chest of size 19" x 19" x 24"
containing 100 lb. to 130 lb. of tea costs
approximately 12 shillings or approximately 10
cents per lb, of made tea.
No cheaper alternatives to tea chests have yet

been found which are acceptable to tea blenders
for the export of made tea. Experiments have
been carried out by Brooke Bond Ltd. and Imperial
Chemical Industries Ltd. In the long term, it
- 90
-
Part One
Section 5
should be possible to develop a cheaper
alternative, probably in conjunction with
standard shipping containers.
Containers are now being used on a limited scale
to bring such goods as domestic appliances into
East Africa. Products from East Africa such as
tea and coffee would be obvious "back-loads" if
the problems of taint and contamination of foreign
odours could be overcome. However, at present,

the current benefits of transporting tea chests
in containers (mainly less chance of damage and
pilferage) do not warrant the estimated 5 - 10%
increase in shipping charges. The tea chest, as
now used, is a fairly robust container and damage
and pilferage are not at a high level.
We have approached a local company, Express Transport
Ltd., who have agreed to carry out an experimental
shipment of tea chests in containers, so that actual
costs can be determined. We have initiated this
experiment, but there will not be time during our

assignment to complete it. In addition, we See Part Two
have arranged for an experimental delivery of 5.2.1
K.T.D.A. tea to the U.K. in sacks. Two types
of sacks are being tried, one a foil lined
jute/paper sack, the other a multi-wall paper

sack, also lined with foil. Both are now used
to transport instant tea overseas. They will

- 91
-
Part One
Section 5
be sent to U.K. as back loads in containers by
Express Transport Co. The condition of the teas
will be evaluated on arrival by the brokers and

tasters and the cost of transport assessed.
In the long term, the development of container
ports and container ships may demand the use of
containers and this subject should be kept under

review. The use of containers could be particularly
beneficial if the protection afforded by them were
to allow the development of cheaper individual

packaging units than the present chests. This
development of an acceptable combination of box or
sack/container, which could produce major packaging

cost savings, is well worth further investigation
but will require liaison with:-
Container interests in East Africa;
. Tea Brokers and buyers;
Managing agents;
. Packaging manufacturers or the Packaging

Industry Research Association.
CURRENT COSTS OF TRANSPORT OF MADE TEA
TO MOMBASA
Transport costs (cents/lb.)
Factory Road to Rail to To Mombasa Total

railhead Mombasa by road only
Kangaita 1.7 5.4 NA 7.1
Chinga NA NA 6.0 6.0
Mataara NA NA 6.0 6.0
Kitein 1.3 6.2 NA 7.5
Nyankoba 2.0 6.2 NA 8.2
CURRENT COSTS OF TRANSPORT OF MADE TEA
TO KERICHO
Transport costs (cents/lb.)
Factory Road to Rail to To Kericho Total

railhead Kericho by road only
Kangaita 1.7 4.6 NA 6.3
Chinga NA NA 6.0 6.0
Mataara NA NA 6.0 6.0
Litein NA NA 1.0 1.0
Nyankoba NA NA 1.6 1.6
NA = not applicable
- 92
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Part One
Section 5
5.3.2 Transport Arrangements - By 1981/82, 66 million lb.

of made tea will be produced by K.T.D.A. About
96% of this will be transported to Mombasa for
export, the remainder being transported to the
Associated Tea Growers of East Africa "Pool"
at Kericho. The tables opposite summarise
current transport costs.
Three methods of transport have been examined:-
Direct road haulage by contractor,
Direct road haulage by leaf-collection

vehicles,
Combined road and rail.
Road and rail is currently the most commonly

used transport system.
Our analysis of these alternatives for transport See Part Two

to Mombasa and Kericho leads us to the following 5.2.2
conclusions:-
Mombasa - The combined road and rail transport represents

the best long-term method of made-tea transportation,
being some 15% cheaper than direct road haulage
by major road haulage contractors.
The use of leaf collection vehicles could be

considered for transport to the railhead, as they
appear to have a cost advantage of about 15 to
20% over local contractors.
- 93
-
Part One
Section 5
Kericho - It would be most economic, particularly

with loads under 22,000 lbs. weight, to transport
tea to Kericho by road, either with small
haulage contractors or by the use of a heavy
vehicle owned and operated by K.T.D.A.
Leaf lorries could be used to deliver tea to

Kericho at a similar cost to those charged by
local contractors.
5.3.3 Air Freight - The possibility of transporting tea

as air freight cargo was investigated- Several See Part Two
flights operate each week between Nairobi and 5.2.3
England (Gatwick or Heathrow) and small
quantities of tea are transported in this way.
However, the lowest quoted rate of Shs. 2/90
per kilo for a minimum of 1,000 kilos produces
a cost of around 150 cents per lb. of made tea.
This is almost three times the cost of sea
freight, and hence makes air freight an uneconomic
proposition at this time.
5.4 Conclusions
To summarise we have proposed:-
. Factories of 5m. lb. capacity yielding

significant cost benefits over the smaller
factories now in operation;
Studies in connection with quality control

which could well yield a major breakthrough
in the maintenance of tea quality;
- 94
-
Part One
Section 5
. Development of improved management control

procedures which would provide a firm basis
for comparison of one factory with another;
. Experiments in the use of alternatives to tea

chests for the transport of made tea to overseas
markets, which could lead to significant
reduction in costs.
K E N Y A
Kitale CHERANGANI
% * Marafal
NANDI/KAXAMEGA Mt
K O Thomsont Kenya
J, ~~~~~ KecoN I -4W0ERU
' N E SOUTH
?i 1KEI ADERDARIES
0 NAIROBI
FINAL REPORT

RECOMMENDATIONS FOR FURTHER STUDY
April 1969
- 95
-
Part One
Section 6
RECOMMENDATIONS FOR FURTHER STUDY
We summarise in this section the recommendations for further

study contained in this report.
6.1 Leaf Collection
. Field trials need to be carried out with prototypes

of the proposed LEAF TRAYS when they become available.
6.2 Manufacture
. A specific study of manufacturing processes and made

tea quality is required to establish objective
standards of QUALITY CONTROL. This is particularly
important for the large factories envisaged.
Improved management control procedures are required

to enable K.T.D.A. to make INTER-FACTORY COMPARISONS.
This should lead to better control of factory costs
and enable K.T.D.A. to take a more active role in
problems affecting the marketing of its teas.
6.3 Distribution
Experiments should be made with alternative CONTAINERS

for made tea. We have suggested the use of foil-
lined paper or jute sacks transported in containers.
Sample shipments should be sent to London and the
condition of the teas examined on arrival. Further
experiments could then be required to deal with any
modifications.
6.4 Marketing
. We strongly recommend that a wide-ranging MARKETING

investigation be undertaken. This should cover present
and future possible markets and tea quality and prices.
The study should be closely linked with the recommended
quality control investigation. We would be glad to
supply detailed terms of reference for such a study.
K E N Y A
Kitaje CHERANGANI
% *Maraial
NANDIIKAKAMEGA Mt
KiKs Fag
., )als A 0-1ERU Kenya
4 Keicho Nyert. MT.KENYA SOUTH
KISII i ABERDARES
NAIROBI
Mombasa
FINAL REPORT
Part One - Appendices

MAPS SHOWING
THE TEA ROADS NETWORK
April 1969
- 96
-
Part One
APPENDIX I
MAPS SHOWING ROAD NETWORKS
The maps contained in this appendix show the existing and future
tea collection roads in each area.
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KARATINA
EXISTING MAIN ROADS.

TO BE BITUMENISED BY M.O.W. --
PHASE 11 PLAN TEA ROADS OMITTED
FROM FUTURE NETWORK. -'
PHASE II PLAN TEA ROADS
RETAINED.. . ..
PROPOSED NEW TEA ROADS.
EXISTING. 0
FACTORY SITES
NEW..... 0
ABERDARES TEA GROWING AREA
TEA AREA BOUNDARY..
PROPOSED MAIN ROAD. ...- SCALE'r 1:250,000
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/Kutus
EXISTING MAIN ROADS....

TO BE BITUMENISED BY M.O.W.
FROM FUTURE NETWORK
PHASE 11 PLAN TEA ROADS
RETAINED...
EXISTING.
FACTORY SITES f
(D
MT. KENYA SOUTH TEA GROWING AREA
NEW. .... .0
SCALE:-1 250,000
TEA AREA BOUNDARY.
1~~>
'
to
/ \..
MERU
-
rJ~
Jy thar o
xj
/
.7
.7
( Chogoria / gct
I
C"
( -7'
LARE
\r 7
)
I
/
'Al
1,0
*Mitunguu 7 I.
-A.
s -7
\. 'I,
.7
/
(
7
EXISTING MAIN RO ADS.........

TO BE BITUMENISED BY M..W......... --- --
FROM FUTURE NETWORK............. . '' 's--'
RETAINED...........
PROPOSED NEW TEA ROADS.......... MERU TEA GROWING AREA
EXISTING... o0 (IMENTI & NYAMBENI)
FACTORY SITES t
NEW.... ..... SCALE: 1:250,000
TEA AREA BOUNDARY.
K
apsoit
N
/
/Sosiot
N
7 A
'KERICHO
J N
o})
I- I
5/, ft
1/
Kabiango C
~.i' ?i~'
N
/
L
'Rorct
2-.
-7
(
/
Chebora e .1
tein
-I
) K et
Q-Ch ptlct
0
N
1~
EXISTING MAIN ROADS. ......... -4-

TO BE BITUMENISED BY M.O.W. SOTIK
Boito
PHASE II PLAN TEA ROADS OMITTED N>
FROM FUTURE NETWORK.. ---' \
RETAINEDI ....
FACTORY SITES { EXISTING.

NEW...... 0 KERICHO TEA GROWING AREA
TEA AREA BOUNDARY. SCALE:-1 250,000.
N
r-=. ~~-*
Kenyoro
1/f..'
Nyamira
.7-
VI 0
/ Kebirigo.
'4
•Tinga
/Manga
/ /
Ifan
/
K II
I. JN yo
Gesirna
'(S
OTIK
/
Keumbu 9-,
A
1~
/
4
r- gembo.
Nyagtu rag o
I'
r
)
Ker oka
~-
e'
-J
/
'Nya achl / \
Mogonga tasimb N
EXISTING MAIN ROADS..... /.- - -Nyacheki

- 'fRamesha
TO BE BITUMENISED BY M.O.W...... ..- -

Nyakorere
'--
-
FROM FUTURE NETWORK ............ ......-

---
RETAINED...
PROPOSED NEW TEA ROADS....... OLD
NEW
FACTORY SITES f
EXISTING.. -.. O
KISII TEA GROWING AREA
NEW.. .. O
SCALE:- 1: 250,000
TEA AREA BOUNDARY..
EXISTING MAIN ROADS.
TO BE BITUMENISED BY M.ON.--- N
FROM FUTURE NETWORK....
PHASE I PLAN TEA ROADS
RETAINED.
EXISTING- 0
FACTORY SITES
NEW- -0
-~
TEA AREA BOUNDARY. 1;
/
f
/ /
KAKAMEGA
( I
(
/
/
¾
I /
I
Osore
/
eOesos
/
/ TiJ K apsabet
L.
1<~~
'6 ~V*
-
Kaimosi
(
/ 1
Koipark
/
/Ka im i(
/
~'
/1 DI HILLS
7
/
Mbale
J/ 1~
/
o ...........
N E W 0 L D
/
K A K A M
/
E G A-
- ~~~~~~
-NA N D I HI L L S
NANDI HILLS-KAKAMEGA
TEA GROWING AREAS
SCALE - 1:250,000

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THE WORLD BANK GROUP ARCHIVES

PUBLIC DISCLOSURE AUTHORIZED

Folder ID: 196551

Project ID: P001226

Fonds: Records of the Africa Regional Vice Presidency

ISAD Reference Code: WB IBRD/IDA AFR

THE WORLD BANK

© International Bank for Reconstruction and Development / International Development Association or

KENYA TEA DEVELOPMENT AUTHORITY

The KTDA wais estabLished in 1960 to p/uomote, 6inance and contoL

AbeLdaxes 8,200 ackes

At pruesent thee ae oveu 39,000 guowea ,tegiste.,ed with the KTDA.

Kenya Tea Development Authority Final Report

Following ins pection at the buying centte, the Zea6 is stoLed in

On anivat at the 6actotty (which can be up to midnight and sometimez

At p'esent KTDA deivex LeaA to 4wetve actouies. Six o6 the

Guoweu ae paid at the end oA each monith at a grtoss 'tcute oA 40

AAtext meeting aLL Aactoty, distixbution and seting chaxges, any

Kenya Tea Development Authority Final Report

It i6 anticipated that apptoximatety 17,000 new growers wiUl

The Thitd PLan is expected to achieve an in.cae in the output a/

The compattive quantitiue o tea pioduced /Som the conmexcia estates

Ackeage Pkoduction Acteage Production

Kenya Tea Development Authority Final Report

By 1980, and csuming present wortd prces, exports o6 tea /Aom

It is against this background o soctaL, cs weLe a, economic,

The concept o6 the KTDA Devetopment PLans, as weLL as being based

Kenya Tea Development Authority Final Report

. the cash payments to the growems emain

. the inheLent ine6 ciencies in the green

In conctuding thiz 6omewo'd we woutd -ike to expLess ouL waxm

We have been mos5t imptessed by the good communiLcations thett exist

Kenya Tea Development Authority Final Report

We would aL o tike to place on !ecotd the co-opeation that ha6

We also thank the Minisntg o4 Womks, the Minising o6 Agiculute,

KENYA TEA DEVELOPMENT AUTHORITY

Part One - Section 1

Kenya Tea Development Authority Final Report

CONTENTS OF PART ONE

SECTION 1 - TERMS OF REFERENCE 11

SECTION 2 - THE TOTAL SYSTEMS and a 12

2.1 The Elements or sub-Systems that we have 12 - 14

2.2 The Economic Analysis 14 - 26

2.3 Summary of Recommendations 26 - 28

2.4 Analysis & Recommendations by Area 29 - 30

2.5 Concluding Remarks to this Section 30 - 33

3.1 Preliminary Observations 34

3.2 Soil Tests 34

3.2.2 Conclusions from Soil Tests 34 - 35

3.3 The Case for Improved Roads 35

3.3.2 Road-Making Materials 37 - 38

3.4 Alternative Development Plans 40

3.4.1 Improved Roads - Alternative A 40

3.4.2 Minimal Maintenance - Alternative B 41

3.4.3 Complete Gravelling - Alternative C 41 - 42

3.4.4 Selective Maintenance - Alternative D 43

3.4.5 Other Alternatives 43 - 45

Kenya Tea Development Authority Final Report

SECTION 3 - ROADS (Cont'd) Page

3.5 Costs and Benefits 46

3.5.1 Construction and Maintenance 46 - 47

3.5.2 Traffic Counts 47 - 48

3.5.3 Traffic Growth and Composition 48

3.5.4 Vehicle Operating Costs 49