Sessional Paper No. 04 of 1974 on Government Guarantee for Two Loans of Sterling Equivalent K£5,525,000 Being Given to Kenya Tea Development Authority by The Commonwealth Development Corporation

Abstract

In accordance with the provisions of the Guarantee (Loans) Act (Cap.461), the following information is laid before the National Assembly relating to a guarantee which the Government proposes to give in respect of two loans being given by the Commonwealth Development Corporation to the Kenya Tea Development Authority. The Kenya Tea Development Authority is a statutory body established by the Agriculture (Kenya Tea Development Authority) Order, 1964. The Order provides that Kenya Tea Development Authority will acquire, operate or establish or enter into agreement for the establishment of tea processing factories; it will promote, finance and control the development of tea grown by smallholders and subscribe for shares in any company incorporated in Kenya for the purpose of processing and marketing tea. In pursuance of this objective, Kenya Tea Development Authority with the aid of loans from the World Bank, Commonwealth Development Corporation and other lenders, has developed smallholder tea industry in the Republic's districts of Kiambu, Murang'a, Nyeri, Kirinyaga, Embu, Meru, Kisii, Kericho, Nandi, Kakamega and Kitale; and has established processing factories in nine of these districts...