KTDA hydropower plant connected to the national grid
Business
By
Clare Ochieng
| Aug 17, 2025
Senate Majority Leader Aaron Cheruiyot (right) at Chemosit hydropower project site which is being developed under the Kenya Tea Development Agency (KTDA) Power Company. [File, Standard]
Kenya Tea Development Agency (KTDA) Power-run Nyambunde small hydropower (SHP) plant in Kisii County has been connected to the national grid, earning extra revenue from the sale of excess power.
Nyakwana Power Company, which owns the project, has signed a Power Purchase Agreement (PPA) with Kenya Power, formally integrating the two megawatt (MW) plant into the national grid.
The plant, which was commissioned in December 2023, has been supplying power to Ogembo, Kiamokama, Itumbe and Nyankoba tea factories.
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The three factories are among the shareholders (owners) of the plant in conjunction with Nyamache, Nyansiongo, Kebirigo, Sanganyi, Gianchore and Tombe tea factories, all being KTDA-managed tea factories in both Nyamira and Kisii counties.
KTDA Power Company Ltd, a subsidiary of KTDA Holdings Ltd, is also a shareholder.
The Nyambunde SHP on Gucha River is one of six operational power plants managed by KTDA Power. Another six projects are at advanced stages of construction.
The factories supplied power from SHPs are realising value through reduction of the cost of power, improved quality and reliability and promoting the use of green energy in the country and as a source of additional income to the tea farmers.
This not only contributes to sustainability goals but also enhances the overall competitiveness of their tea in global markets.
Electricity constitutes about 15 per cent of the tea production costs at the factory, and having its own power translates into more revenue for the farmers in future.
The power plants are developed using a mix of debt and equity, meaning that once the loans are fully serviced, even greater value will begin to flow directly to the growers.
The six operational power plants: Imenti, Gura, North Mathioya, Chania, Nyambunde and Lower Nyamindi all have a combined installed capacity of 17MW and are connected to 17 Tea Factories.