Equatorial Greenfarm Produce Limited (EGPL) was incorporated in September 2014 with the aim of establishing a tea processing factory in Kerugoya, Kirinyaga County. The project, originally proposed in 2020, faced legal challenges due to land disputes but has since relocated to a new site. EGPL is seeking KES 47.9 million in debt financing to complement its KES 28.7 million equity contribution, making the total project cost KES 76.6 million. Kenya is the third-largest tea producer and the leading exporter globally, with over 90% of its tea produced for export. Major importers include Pakistan, Egypt, Britain, and the UAE. The company plans to produce Black, Green, and Purple teas, with a focus on specialty teas like purple tea, which have higher market value due to their health benefits. Purple tea, in particular, is noted for its anthocyanin content, which aids in weight loss and offers other health benefits. EGPL’s production capacity is set at 1 million kilograms of tea annually, with a conversion rate of 5 kilograms of green or purple leaf to 1 kilogram of finished tea. Starting with 50% capacity utilization in its first year, the company expects to increase capacity by 20% annually until the fourth year. Revenue is projected to grow from KES 133 million in the first year to KES 245 million by the fifth year. Net profit is expected to increase from KES 14 million in the first year to KES 46 million by the fifth year, supported by a strong average Debt Service Coverage Ratio (DSCR) of 4.86 over five years. The total investment covers costs related to land acquisition, building works, machinery, pre-operational expenses, and working capital, with a debt-to-equity ratio of 1.7:1.

Agriculture

Loan

76600000

KES

Growth