Kenya Tea Development Agency (KTDA) has established a new venture, Chai Power Limited, in partnership with GridX Africa Development Limited, to deploy 12 MW of solar photovoltaic capacity across its tea-farming operations in Kenya.
Under the agreement, GridX will develop and finance the first phase of the project — committing around US $10 million to support the rollout. The venture structure gives GridX a minority stake, while KTDA and its energy arm retain majority ownership and manage the assets.
Electricity costs are among the largest expense categories for KTDA’s factories. According to feasibility studies commissioned by KTDA, deploying up to 25 MW of solar across all 75 of its factories could save more than US $2.5 million annually. The initiative thus addresses both cost-containment and sustainability.
By leveraging in-house energy asset management via KTDA, the Chai Power model reduces dependence on third-party independent power providers, keeping control with the tea producer while securing long-term, stable cash flows.