Businessman David Lagat is setting up a Sh249 Million tea factory in Nandi.

The Mombasa-based tycoon will be taking on dominant player Kenya Tea Development Agency (KTDA) and multinational companies such as George Williamson. Multinationals have about 19 factories while KTDA has two.

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His new factory will process black tea and will be a subsidiary of the DL Group owned by Mr Lagat who has other tea processing companies in Kericho.

The billionaire businessman also has interests in shipping and owns Koisagat Tea Factory in Nandi.

Kenya is currently the leading exporter of tea in the world. It sells 95 per cent of its tea to the world market.