Global Advanced Research Journal of Economics, Accounting and Finance (GARJEAF)
May 2013 Vol. 2(4), pp. 073-085
Copyright © 2013 Global Advanced Research Journals



Influence of new technology on financial performance; A case of small scale tea industry in Kebirigo, Kenya.

*1Vicky Mobegi O, 2Simeon Kaburi N, 3Kombo A, 4David Achuti M, 5Dickonus Matoke A,  6Abunda Joshua, 7Ben Ombasa B and 8Dr. Sewe T


1-8Jomo Kenyatta University of Agriculture and Technology, Kisii CBD, Nairobi, Kenya.

*St Vincent Centre, P.O Box 115-40200 Kisii, Kenya.

*Corresponding Author’s E-Mail:  

Accepted 27 November 2012



This study provides an overall picture of the role played by the small scale tea industry towards social- economic development. A case study of Kebirigo tea factory has been picked from among the 54 small scale tea factories. The tea industry has of late increasingly become the country’s greatest economic asset earning close to Kenya shillings 70 billion between 2008 and 2009; most of it in hard foreign currency (Leo Odera Omolo 2010).The small scale tea industry takes care of lives close to five million Kenyans. This study project the application of technology as part of efficient management of small scale tea industry. The agency secures finances from the financial institutions on behalf of the tea farmers. The Tea Agency (KTDA) is charged with the responsility of regulating and managing these factories. To establish an extra- modern green leaves tea processing factory required the colossal amount. The farmers contribute towards replenishment of the loan to modernize their factories. They are also subsidized with farm inputs like fertilizers, tree seedlings, technical advice, tea roads improvement and employment. Challenges faced by the industry among others include; tea harking (mang’eroto), human resource, alarming manufacturing costs and change in global technology. There were six factories in the region selected at the time of research. These factories were selected as the sample size. The study recommends the use of new technology purposely for efficient management of small scale tea industry. The study further recommends the benefits of technology need to be closely weighed against its costs. Managers will need specialized training if they are to keep pace with an ever changing technology. Part of that training should include the decision making process in a fast paced environment. The study employed a case study of method utilizing a sample out of the target population.

Keywords:  social-economic, extra-modern, global technology, small-scale, Tea industry; Technological gap; Technological and attitudinal changes.






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