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Sale of substantial Eucalyptus trees Investment
Rank: New-farer Joined: 6/14/2011 Posts: 82
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Kaigangio wrote:@ villageseer,
you see village the first mistake you made when planting those trees is not knowing who will buy them poles...
KPLC and REA do not buy raw (untreated) poles...
my advice...go to GTI (Gilgil Telecommunications Institute, formerly owned by KPTC) in Gilgil town, Marura Power poles treatment factory (about 8km from sagana town on your way to nairobi).
Also check another treatment site just about 2km from Kekopey township on your way to nakuru.
...hope that will help. kaigangio Thanks for your advise,but I can assure you I did thorough homework when I came to learn about the new venture that had recently at that time (2003) being introduced in the country for smallholder farmers who could alternatively invest in tree planting as subsitute of already pathetic situation of existing cash crops products(Coffee & Tea) in Central Province. I can assure you those of us who took the risk did thorough research of the existing markets, locally and internationally . We knew the value of the Kenya market of treated transmission wood poles at that time was around 4 billion shilling annually (estimated to be around Ksh 7 billion now). And in most cases the KPLC had to import the product from Europe, Far East, South Africa and our neighbouring countries - Uganda, Tanzania and DRC. This new hybrid seedlings (clones Eucalyptus seedling that would reach its maturity within a period of 5-7 years for the transmission poles instead of the conventional trees that takes 15-20 years to mature) was being imported from South Africa, through collaboration of Kenya ( KEFRI -under Kenya Biotechnology Programme Trust) and South Africa governments( through a South Africa multinational paper company that owned thousand acres of forest plantations for its paper mills) and funded by a British organization known as Gatsby Trust and US'ISSSA(Remember the Bananas tissue technology of JKUAT?) Anyway, from outset we knew that there was a big demand of the product and even there was and still even today publication depicting of what you would make from planting these trees from KEFRI people. Their publication stated that after three years of planting their seelings , you could fetch an average of Ksh3,000 per tree in selling it as telephone pole to Kenya Post AND Telecommunication. And if you wait for 5 years, you could sell it KPLC at least for a minimum of Ksh10,000.00 But what we never reckoned at that time and even now was the kind of resistance we would face from the existing Cartel that had for years controlled this market and with assistance of top management of these two firms. Made of a minimum of 4 to 6 major companies in energy industry, these guys are quite ruthless. Even after the Parliement in 2008 or 2009 had passed a motion that KPLC should initially source their transmission poles locally before venturing internatinally, the management did totally ignored this, and even after its Board of Directors also, passed a resolution of the same in 2009, and even after KEFRI through its Biotechnology Programme Project had organized the farmers as Forest Growers Association - that could negotiate for them as legal entity in putting a bid at KPLC or Rural Electrification. And even after both of them (KPLC &REA) had invited the organization to put an EOI Tender in January 2010, that they could be able to supply them treated poles. After submitting our collective Bid as an organization and led by KEFRI, the tender was opened in March 18th 2010 and that was the last time we had from them. So Kagaingio, I hope with that little background , you would be able to see what sometimes you have to go through when you are faced with an almost monopolistic and cut-throat type of business.
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Rank: New-farer Joined: 6/14/2011 Posts: 82
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villageseer wrote:Kaigangio wrote:@ villageseer,
you see village the first mistake you made when planting those trees is not knowing who will buy them poles...
KPLC and REA do not buy raw (untreated) poles...
my advice...go to GTI (Gilgil Telecommunications Institute, formerly owned by KPTC) in Gilgil town, Marura Power poles treatment factory (about 8km from sagana town on your way to nairobi).
Also check another treatment site just about 2km from Kekopey township on your way to nakuru.
...hope that will help. kaiganjo Thanks for your advise,but I can assure you I did thorough homework when I came to learn about the new venture that had recently at that time (2003) being introduced in the country for smallholder farmers who could alternatively invest in tree planting as subsitute of already pathetic situation of existing cash crops products(Coffee & Tea) in Central Province. I can assure you those of us who took the risk did thorough research of the existing markets, locally and internationally . We knew the value of the Kenya market of treated transmission wood poles at that time was around 4 billion shilling annually (estimated to be around Ksh 7 billion now). And in most cases the KPLC had to import the product from Europe, Far East, South Africa and our neighbouring countries - Uganda, Tanzania and DRC. This new hybrid seedlings (clones Eucalyptus seedling that would reach its maturity within a period of 5-7 years for the transmission poles instead of the conventional trees that takes 15-20 years to mature) was being imported from South Africa, through collaboration of Kenya ( KEFRI -under Kenya Biotechnology Programme Trust) and South Africa governments( through a South Africa multinational paper company that owned thousand acres of forest plantations for its paper mills) and funded by a British organization known as Gatsby Trust and US'ISSSA(Remember the Bananas tissue technology of JKUAT?) Anyway, from outset we knew that there was a big demand of the product and even there was and still even today publication depicting of what you would make from planting these trees from KEFRI people. Their publication stated that after three years of planting their seelings , you could fetch an average of Ksh3,000 per tree in selling it as telephone pole to Kenya Post AND Telecommunication. And if you wait for 5 years, you could sell it KPLC at least for a minimum of Ksh10,000.00 But what we didn't know was the kind of resistance we would face from the Cartel that had for years controlled this market. Made of a minimum of 4 to 6 major companies in energy industry, these guys are ruthless. Even after the Parliement in 2008 or 2009 had passed a motion that KPLC should initially source their transmission poles locally before venturing internatinally, the management did totally ignored this, and even after its Board of Directors also, passed a resolution of the same in 2009, and even after KEFRI through its Biotechnology Programme Project had organized the farmers as Forest Growers Association - that could negotiate for them as legal entity in putting a bid at KPLC or Rural Electrification. And even after both of them (KPLC &REA) had invited the organization to put an EOI Tender in January 2010, that they could be able to supply them treated poles. After submitting our collective Bid as an organization and led by KEFRI, the tender was opened in March 18th 2010 and that was the last time we had from them. So Kagaingio, I hope with that little background , you would be able to see what sometomes you have to go through when you are faced with an almost monopolistic and cut-throat type of business.
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Rank: Veteran Joined: 2/3/2010 Posts: 1,797 Location: Kenya
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@villageseer Other than getting the market and time it takes, what were the input costs for the 8years I may be wrong..but then I could be right
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Rank: New-farer Joined: 6/14/2011 Posts: 82
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digitek1 wrote:@villageseer
Other than getting the market and time it takes, what were the input costs for the 8years Actual cost initially would be the preparation of the piece of the land you intend to plant seedlings - Meaning slashing the bushes if the selected piece of land had been idle for some time, or making sure the soil is tended well from weeds. Then you need to take a soil-sample of the area to KEFRI or KARI for analysis and recommendation. This will give them the idea(s) of the types of the species of eucalyptus tree that would do well in your particular land. For Example, the area I had earmarked for this project being above 1000M above Sea level - Does exremely well with Eucalyptus E'grandis specie type, which within 5 years period the trees would almost be matured for harvest. And an acre would take 1,000 pieces of seedlings. While for the dry like Kajiado would only accommodate less than 600 trees per acre and of totally different species of the eucalyptus clone species. NB, You also have to be very careful on where you buy your species from. There are many conmen,and even former scientists at KARI and KEFRI who even have large plants-nurseries and usually claimed that they are"agents" of KEFRI. Be also warned that what they sell although in the first 3 years you can't tell the difference of it and that of Biotech Trust - In its third or fourth years it will start to manifest a total hybrid of shrinking and withering type of a tree ! The initial cost of buying these high placed clones trees was Ksh7.00 per each seedling. Add the cost of transportation to your intended place. The cost of digging holes,applying fertilizer and planting. the cost of at least trimming the plant in the first 3 years. Fighting termites from eating your new plant by applying pestcides. AND THEN praying to your MAKER that there would be enough rain to sustain your seedlings in the first 6 months of planting. In my case, I had planted 35,000 seedlings and only 8 to 10,000 did survived the drought of 2004.
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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@Seer, how did it go? What price did you fetch?
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Rank: Elder Joined: 4/30/2008 Posts: 6,029
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Saw an advert from RURAL ELECTRICIFICATION AUTHORITY inviting farmers with eucalyptus poles.
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Rank: Hello Joined: 11/12/2012 Posts: 1
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Hi, Kindly send me your Contacts; My Email is alfmarindi@gmail.com. Thank you
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Rank: Member You have been a member since:: 11/17/2006 Posts: 143
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Anyone with contacts of that MARURA TREATMENT PLANT in Sagana, cant seem to find their contacts on the web.
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Rank: Member Joined: 4/20/2008 Posts: 437
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@villageseer, did you eventually sell the trees?
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Rank: Hello Joined: 6/17/2013 Posts: 1
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@villageseer, did u eventually sold out the tress? from your experience would you advice one to try the investment? i have some 5 acre idle land and i am evaluating the investment options!
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Rank: Hello Joined: 11/1/2013 Posts: 1
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Dear Villageseer, First off, are these trees still available, if so, email me. Secondly, i have read through your post and having been in the poles business for the last 8 years i can assure you there is no such monopoly at KPLC or REA.... rather there seems to be a misconception on pricing paid by KPLC and the rate at which the Hybrid Eucalyptus grows: 1. It takes a tree ( Grandis or Grandis Hybrid) a minimum of 8 years in a heavy rainfall area to mature to KPLC spec poles - which is a minimum of 10M length and a top diameter of 160mm ( top diameter must be without bark and allow for shrinkage) so to be safe you go with a 170mm top diameter on a standing tree. 2. The spacing of trees when planted must be a minimum of 2.5M x 2.5M averaging 1600 stems per hectare. Again spacing is determined by location of planting. Drier areas may require a 3mx3m spacing. 3. 30% of trees planted will most likely not survive to maturity, from the remaining 70% of surviving trees only about 30% -40% will qualify for poles, the rest will not make the specs...either too thin or too crooked etc This is the general rule of thumb, if you are able to achieve this then you are doing well. 4. The selling price of a raw tree or pole will average around Kshs 4000 per tree today, why Shs 4000 and not Shs 12,000-16000 like you read about in the papers? Answer is simple, you cannot cut a tree and deliver it to KPLC - it has to be treated first ( the process of treating can take up to 5 hours under high pressure - not simply dipping the pole in green chemicals). This is where the treatment plants come in, so the price most farmers see is the Kshs 12,000 which can be misleading- this price is for a TREATED pole delivered to KPLC not a raw pole. Furthermore, treatment plants have to warranty the pole for 25 years. I hope this clarifies some misconceptions as is commonly found in the newspapers. Regards Fash villageseer wrote:Kaigangio wrote:@ villageseer,
you see village the first mistake you made when planting those trees is not knowing who will buy them poles...
KPLC and REA do not buy raw (untreated) poles...
my advice...go to GTI (Gilgil Telecommunications Institute, formerly owned by KPTC) in Gilgil town, Marura Power poles treatment factory (about 8km from sagana town on your way to nairobi).
Also check another treatment site just about 2km from Kekopey township on your way to nakuru.
...hope that will help. kaigangio Thanks for your advise,but I can assure you I did thorough homework when I came to learn about the new venture that had recently at that time (2003) being introduced in the country for smallholder farmers who could alternatively invest in tree planting as subsitute of already pathetic situation of existing cash crops products(Coffee & Tea) in Central Province. I can assure you those of us who took the risk did thorough research of the existing markets, locally and internationally . We knew the value of the Kenya market of treated transmission wood poles at that time was around 4 billion shilling annually (estimated to be around Ksh 7 billion now). And in most cases the KPLC had to import the product from Europe, Far East, South Africa and our neighbouring countries - Uganda, Tanzania and DRC. This new hybrid seedlings (clones Eucalyptus seedling that would reach its maturity within a period of 5-7 years for the transmission poles instead of the conventional trees that takes 15-20 years to mature) was being imported from South Africa, through collaboration of Kenya ( KEFRI -under Kenya Biotechnology Programme Trust) and South Africa governments( through a South Africa multinational paper company that owned thousand acres of forest plantations for its paper mills) and funded by a British organization known as Gatsby Trust and US'ISSSA(Remember the Bananas tissue technology of JKUAT?) Anyway, from outset we knew that there was a big demand of the product and even there was and still even today publication depicting of what you would make from planting these trees from KEFRI people. Their publication stated that after three years of planting their seelings , you could fetch an average of Ksh3,000 per tree in selling it as telephone pole to Kenya Post AND Telecommunication. And if you wait for 5 years, you could sell it KPLC at least for a minimum of Ksh10,000.00 But what we never reckoned at that time and even now was the kind of resistance we would face from the existing Cartel that had for years controlled this market and with assistance of top management of these two firms. Made of a minimum of 4 to 6 major companies in energy industry, these guys are quite ruthless. Even after the Parliement in 2008 or 2009 had passed a motion that KPLC should initially source their transmission poles locally before venturing internatinally, the management did totally ignored this, and even after its Board of Directors also, passed a resolution of the same in 2009, and even after KEFRI through its Biotechnology Programme Project had organized the farmers as Forest Growers Association - that could negotiate for them as legal entity in putting a bid at KPLC or Rural Electrification. And even after both of them (KPLC &REA) had invited the organization to put an EOI Tender in January 2010, that they could be able to supply them treated poles. After submitting our collective Bid as an organization and led by KEFRI, the tender was opened in March 18th 2010 and that was the last time we had from them. So Kagaingio, I hope with that little background , you would be able to see what sometimes you have to go through when you are faced with an almost monopolistic and cut-throat type of business.
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Thanks @fash. so, can I treat the poles in places approved by KP and then sell at an improved price?
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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Other than selling to Kenya power, what are the other uses there trees can be put to e.g Charcol, timber, export etc.
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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streetwise wrote:Other than selling to Kenya power, what are the other uses there trees can be put to e.g Charcol, timber, export etc. Timber
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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Rank: Member Joined: 1/1/2010 Posts: 511 Location: kandara, Murang'a
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How feasible is this in Kajiado? Would I need to irrigate or natural rain would do? Foresight..
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Rank: Veteran Joined: 10/9/2006 Posts: 1,502
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gatoho wrote:How feasible is this in Kajiado? Would I need to irrigate or natural rain would do? Plant 1-2ft seedlings shortly before onset of long rain. End of March. 80% will survive. work to prosper
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Rank: Member Joined: 5/15/2019 Posts: 677 Location: planet earth
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villageseer wrote:Kaigangio wrote:@ villageseer,
you see village the first mistake you made when planting those trees is not knowing who will buy them poles...
KPLC and REA do not buy raw (untreated) poles...
my advice...go to GTI (Gilgil Telecommunications Institute, formerly owned by KPTC) in Gilgil town, Marura Power poles treatment factory (about 8km from sagana town on your way to nairobi).
Also check another treatment site just about 2km from Kekopey township on your way to nakuru.
...hope that will help. kaigangio Thanks for your advise,but I can assure you I did thorough homework when I came to learn about the new venture that had recently at that time (2003) being introduced in the country for smallholder farmers who could alternatively invest in tree planting as subsitute of already pathetic situation of existing cash crops products(Coffee & Tea) in Central Province. I can assure you those of us who took the risk did thorough research of the existing markets, locally and internationally . We knew the value of the Kenya market of treated transmission wood poles at that time was around 4 billion shilling annually (estimated to be around Ksh 7 billion now). And in most cases the KPLC had to import the product from Europe, Far East, South Africa and our neighbouring countries - Uganda, Tanzania and DRC. This new hybrid seedlings (clones Eucalyptus seedling that would reach its maturity within a period of 5-7 years for the transmission poles instead of the conventional trees that takes 15-20 years to mature) was being imported from South Africa, through collaboration of Kenya ( KEFRI -under Kenya Biotechnology Programme Trust) and South Africa governments( through a South Africa multinational paper company that owned thousand acres of forest plantations for its paper mills) and funded by a British organization known as Gatsby Trust and US'ISSSA(Remember the Bananas tissue technology of JKUAT?) Anyway, from outset we knew that there was a big demand of the product and even there was and still even today publication depicting of what you would make from planting these trees from KEFRI people. Their publication stated that after three years of planting their seelings , you could fetch an average of Ksh3,000 per tree in selling it as telephone pole to Kenya Post AND Telecommunication. And if you wait for 5 years, you could sell it KPLC at least for a minimum of Ksh10,000.00 But what we never reckoned at that time and even now was the kind of resistance we would face from the existing Cartel that had for years controlled this market and with assistance of top management of these two firms. Made of a minimum of 4 to 6 major companies in energy industry, these guys are quite ruthless. Even after the Parliement in 2008 or 2009 had passed a motion that KPLC should initially source their transmission poles locally before venturing internatinally, the management did totally ignored this, and even after its Board of Directors also, passed a resolution of the same in 2009, and even after KEFRI through its Biotechnology Programme Project had organized the farmers as Forest Growers Association - that could negotiate for them as legal entity in putting a bid at KPLC or Rural Electrification. And even after both of them (KPLC &REA) had invited the organization to put an EOI Tender in January 2010, that they could be able to supply them treated poles. After submitting our collective Bid as an organization and led by KEFRI, the tender was opened in March 18th 2010 and that was the last time we had from them. So Kagaingio, I hope with that little background , you would be able to see what sometimes you have to go through when you are faced with an almost monopolistic and cut-throat type of business. We thank God for some of these old threads. A true treasure trove of valuable info! Asanteni sana to all of you who have contributed! Jameni, villageseer please update us on what happened here? I feel your pain kabisha kabisha. I can imagine everything you went through, expecting a goodly 50m and then the cartel politics turned it upside down. As they say, this is Kiinya (TIK)..not surprised but it is very sad these msukosukos happened to you. The million dollar question is, what did you eventually do with the trees?On my end I plan to plant plain old cypress. Was at my timber shop juzi buying 2 by 2s and the tiny things were going for a shocking 25 bob a foot before transport! Meaning all I need to do is grow a good size of acres worth of Cypress, hire a very kali Masai moran to guard them, a caretaker to water during the dry season, and wait 5 years, before milling the wood myself and selling on Namanga rd by myself. Si nitatajirika mbaya mboff jameni? 1 huge cypress tree can produce thousands of feet of 2x2s. So imagine 10k trees Even after carrying costs jameni this should be a roaring profit of a deal because I will be vertically integrated from seedling to timber board with zero middle men. And we all know DC is construction central sasa ivi so no shortage of customers especially if I undercut all these tunjamaas here who are selling us overpriced wood we can get from Kitui and elsewhere at many shillings less per foot. Hebu wacha nijipange jameni, time and life wait for no man. Swenani, who was that guy you were asking aangalie mkate yake ya eliot inasema nini, aniangalilie kama hii gitu ginawesekana. Age and family mellows us all over time
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Rank: Elder Joined: 3/29/2011 Posts: 2,242
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amorphous wrote:villageseer wrote:Kaigangio wrote:@ villageseer,
you see village the first mistake you made when planting those trees is not knowing who will buy them poles...
KPLC and REA do not buy raw (untreated) poles...
my advice...go to GTI (Gilgil Telecommunications Institute, formerly owned by KPTC) in Gilgil town, Marura Power poles treatment factory (about 8km from sagana town on your way to nairobi).
Also check another treatment site just about 2km from Kekopey township on your way to nakuru.
...hope that will help. kaigangio Thanks for your advise,but I can assure you I did thorough homework when I came to learn about the new venture that had recently at that time (2003) being introduced in the country for smallholder farmers who could alternatively invest in tree planting as subsitute of already pathetic situation of existing cash crops products(Coffee & Tea) in Central Province. I can assure you those of us who took the risk did thorough research of the existing markets, locally and internationally . We knew the value of the Kenya market of treated transmission wood poles at that time was around 4 billion shilling annually (estimated to be around Ksh 7 billion now). And in most cases the KPLC had to import the product from Europe, Far East, South Africa and our neighbouring countries - Uganda, Tanzania and DRC. This new hybrid seedlings (clones Eucalyptus seedling that would reach its maturity within a period of 5-7 years for the transmission poles instead of the conventional trees that takes 15-20 years to mature) was being imported from South Africa, through collaboration of Kenya ( KEFRI -under Kenya Biotechnology Programme Trust) and South Africa governments( through a South Africa multinational paper company that owned thousand acres of forest plantations for its paper mills) and funded by a British organization known as Gatsby Trust and US'ISSSA(Remember the Bananas tissue technology of JKUAT?) Anyway, from outset we knew that there was a big demand of the product and even there was and still even today publication depicting of what you would make from planting these trees from KEFRI people. Their publication stated that after three years of planting their seelings , you could fetch an average of Ksh3,000 per tree in selling it as telephone pole to Kenya Post AND Telecommunication. And if you wait for 5 years, you could sell it KPLC at least for a minimum of Ksh10,000.00 But what we never reckoned at that time and even now was the kind of resistance we would face from the existing Cartel that had for years controlled this market and with assistance of top management of these two firms. Made of a minimum of 4 to 6 major companies in energy industry, these guys are quite ruthless. Even after the Parliement in 2008 or 2009 had passed a motion that KPLC should initially source their transmission poles locally before venturing internatinally, the management did totally ignored this, and even after its Board of Directors also, passed a resolution of the same in 2009, and even after KEFRI through its Biotechnology Programme Project had organized the farmers as Forest Growers Association - that could negotiate for them as legal entity in putting a bid at KPLC or Rural Electrification. And even after both of them (KPLC &REA) had invited the organization to put an EOI Tender in January 2010, that they could be able to supply them treated poles. After submitting our collective Bid as an organization and led by KEFRI, the tender was opened in March 18th 2010 and that was the last time we had from them. So Kagaingio, I hope with that little background , you would be able to see what sometimes you have to go through when you are faced with an almost monopolistic and cut-throat type of business. We thank God for some of these old threads. A true treasure trove of valuable info! Asanteni sana to all of you who have contributed! Jameni, villageseer please update us on what happened here? I feel your pain kabisha kabisha. I can imagine everything you went through, expecting a goodly 50m and then the cartel politics turned it upside down. As they say, this is Kiinya (TIK)..not surprised but it is very sad these msukosukos happened to you. The million dollar question is, what did you eventually do with the trees?On my end I plan to plant plain old cypress. Was at my timber shop juzi buying 2 by 2s and the tiny things were going for a shocking 25 bob a foot before transport! Meaning all I need to do is grow a good size of acres worth of Cypress, hire a very kali Masai moran to guard them, a caretaker to water during the dry season, and wait 5 years, before milling the wood myself and selling on Namanga rd by myself. Si nitatajirika mbaya mboff jameni? 1 huge cypress tree can produce thousands of feet of 2x2s. So imagine 10k trees Even after carrying costs jameni this should be a roaring profit of a deal because I will be vertically integrated from seedling to timber board with zero middle men. And we all know DC is construction central sasa ivi so no shortage of customers especially if I undercut all these tunjamaas here who are selling us overpriced wood we can get from Kitui and elsewhere at many shillings less per foot. Hebu wacha nijipange jameni, time and life wait for no man. Swenani, who was that guy you were asking aangalie mkate yake ya eliot inasema nini, aniangalilie kama hii gitu ginawesekana. The Chinese proverb "The best time to plant a tree was twenty years ago. The second best time is today" comes handy for you. If you have a good chunk of land in the highlands where they do well, you can give it a trial. Good luck "Things that matter most must never be at the mercy of things that matter least." Goethe
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