Five years ago, General John Koech retired from the military and embarked on a remarkable journey of entrepreneurship that would not only benefit his family but also transform the lives of thousands in the community of Bomet County, Kenya.
Selling his luxurious home in Nairobi’s affluent Lavington for Ksh400 million, General Koech invested in his vision and established the Siomo Tea Factory.
Siomo Tea Factory is a family-owned enterprise, with the matriarch leading as the chairperson and three siblings serving as directors.
Robert Koech, the managing director and one of General Koech’s sons, explained that the decision to sell their Nairobi house was based on the fact that the family rarely used it.
The substantial funds raised from the sale were almost enough to establish a three-line production plant for their tea factory.
Today, Siomo Tea Factory stands as one of the twenty independent factories in Kenya. Unlike most others, which are either owned by the Kenya Tea Development Agency (KTDA) or multinational corporations.
The factory’s modus operandi revolves around collaboration with the community. Siomo does not own its own tea plantations; instead, it relies on 10,000 out-growers who supply the factory with green leaf on a daily basis.
“We do not have our own plantation and rely on out-growers for our daily supplies. This has helped in ensuring that the community benefits from this enterprise,” Robert Koech, the managing director says.
The farmers, in turn, appreciate the steady income stream provided by Siomo, thus promoting a harmonious relationship between the factory and the community.
Moreover, the transport aspect of the business has empowered individual truck owners, with 16 out of 20 trucks ferrying produce owned by independent individuals.
At the core of Siomo Tea Factory’s triumph is their unwavering commitment to quality.
Adhering to the best international practices, the factory has been gazetted as an Export Promotion Zone (EPZ), signifying that all teas processed there are destined for export.
However, responding to their farmers’ requests, Siomo Tea Factory has applied for a license to sell at least 20 percent of their teas in the local market, further enhancing their contribution to the community.
Robert says the factory currently focuses on producing black CTC (crush, tear, curl) tea using two production lines.
“High quality and productive tea requires the latest modern machinery combined with modern agricultural practices to produce cost-effective, efficient and efficacious production operations,” he says.
However, recognizing the potential of orthodox teas, which fetch higher prices than the conventional black variety, Robert says they are planning to install a specialty line for processing these sought-after teas.
With a fully automated system, from dispatch to packaging, the factory optimizes efficiency and maintains high-quality standards.
To elevate the professionalism of the family-owned business, the board comprises individuals outside the family with extensive management expertise, strategically driving the company’s growth and development.
This inclusive approach ensures a diversity of perspectives and skill sets.
Despite its achievements, Siomo Tea Factory faces some challenges.
One of the significant obstacles is ensuring that the farmers adhere to plucking only two leaves and a bud, a fundamental requirement in producing high-quality tea.
Farmers occasionally pluck more than the required amount, compromising the tea’s final taste and value. However, through continuous education and engagement, Siomo is working to address this issue and improve tea quality across the board.
The success of Siomo Tea Factory is part of a broader trend of liberalization within Kenya’s tea industry.
The emergence of private factories, like Siomo, has played a crucial role in absorbing excess tea in the market, effectively solving the problem of farmers struggling to find buyers for their produce.
