Prime
Shs20 .8b tea factory in Kanungu completed
Local Government Minister Raphael Magyezi (R), is taken around Mpungu Tea Factory during the official opening in Kanungu District early this week. Photo / Rajab Mukombozi
What you need to know:
- The factory in Kinyambeho parish is a subsidiary of Kayonza Growers Tea Factory, a small holder owned tea factory also in Kanungu District
A Shs20 .8b tea factory in Mpungu, Kanungu District has been opened paving way for increased tea production.
The factory in Kinyambeho parish is a subsidiary of Kayonza Growers Tea Factory, a small holder owned tea factory also in Kanungu District.
Mr Marcel Asiimwe, the Kayonza Growers Tea chairman, said during the opening that the construction of Mpungu tea factory started in 2020 following increased tea production from farmers in Kanungu, which could not be absorbed by Kayonza.
“Our factory at Kayonza was overwhelmed. So, we decided that a new processing plant be established to take care of increased production and expansion needs for tea growing in Kanungu,” he said, adding that the project cost Shs20.8b financed through a long term loan of Shs16.2b from Oiko Credit, a Dutch funding entity and Shs4.6b from Kayonza Growers Tea Factory.
The factory is expected to employ about 220 people directly as well as boost household incomes given that production will be a full year cycle.
Mr Robert Kakuru, the Mpungu Sub-county chairman, said the factory will help farmers to overcome exploitation by middlemen, many of whom have in the past taken advantage of over supply to manipulate market prices.
“It will not only help farmers fetch better prices but also ensure quality,” he said, but expressed concern over infrastructural challenges, among which include a poor road network and inefficient power supply.
This, Mr Asiimwe said is expected to impact the factory, which is estimated to consume 80 litres of diesel per hour, which translates in a per hour expenditure of Shs4m or Shs180m per month, which he said is an unsustainable expenditure.
