ANNUAL PERFORMANCE REPORT YEAR ENDING : 30TH JUNE 2010 PERFORMANCE INDICATORS FINANCIAL INDICATORS UNITS A 1.

Pre-tax Profit 2. Return on Investment 3 4 Development Index Debt Equity Ratio Ksh (M) % % % 98.4 4.53% 171.0% 9.11% CUMMULATIVE FOR THE YEAR ACTUAL TARGET B 14.50 0.72% 68% 12%

FORM 1

VARIANCE C 83.90 3.8% 103% 2.89%

COMMENTS ON ANY VARIANCE [(UN)FAVOURABLE, CAUSES AND ANY ACTION TAKEN]: Pre-Tax Profits The pre-tax profit target for the year was Kshs 14.5Million. The Corporation achieved Kshs 98.4 Million thereby surpassing the target by a margin of 579%. This was largely due to improved green leaf tea production as a result of favourable weather and good agronomic management. Return on Investment The target on Return on Investment was 0.72%. The Corporation achieved 4.53% which is above target by 529%. This was due to the excellent performance in pre-tax profits. Development Index The target on Development index for the year was 68%. The Corporation achieved 171% which is 151% above target. The high achievement on this target was mainly due to the construction of the tea processing factory. Debt Equity Ratio

The target for Debt Equity ratio for the year was 12%. The corporation achieved 9.11% having financed it's development programmes through internally generated funds.