Carrying research to determine if there is a business case to establish a national common user facility for Tea Value Addition in Kenya and then develop feasibility study for the establishment of such facility
The study involved review of various tea value addition reports benchmarking studies undertaken by the Tea Board of Kenya and the industry as well as examine successful value addition models across tea producing and importing countries and producers of other commodities. The assignment involved Identifying the factors that have occasioned the low levels of value addition in Kenya; establishing the capacity of existing value addition facilities to determine if there is a business case to establish tea value addition facilities in Kenya; and undertaking feasibility study for a common user value addition facilities, its likely location(s), cost benefit, risk and financing options
CDC role is the total management of the assignment whose scope include:
- Identify factors leading to low levels of value addition in Kenya;
- Identify factors leading to high levels of value addition elsewhere especially leading/upcoming tea producing countries;
- Establish Kenya’s key comparative advantage (benefits) that would accrue by raising levels of value addition at firm and country level; and
- Establish current or existing value addition facilities within the country; their capacity, size of investment, type of facility, idle capacity and their location; and subsequently determine/advise if there is need or a business case for additional tea value addition facilities;
- Undertake feasibility of a common user value addition facilities type, locations, cost benefit and risk analysis as well as financing options for such facilities; and
- Establish modalities of operationalization of the common user facilities along the Public Private Partnership Model