Kifu Nursery was operationalized and expanded in 2006 by the Gatsby Tree Biotechnology Project with the purpose of commercialising clonal eucalyptus. The technology was transferred from Mondi Forests in 2002, demonstrated to planters and the public to uptake through field trials and with a research component managed by National Forest Resources Research Institute (NaFORRI) to determine what clone was suitable for which ecological zone, the growth rate and susceptibility to diseases. The planting materials generated by Kifu Nursery enabled the set tip of two other satellite nurseries in Mhale and Form Portal in 2007. The clones have been accepted h) National forestry AuthorM NFAI and Sawlog Production Grant Scheme (SPGS) as good planting material and farmers have demonstrated keen interest in planting. The combined nurseries have a total of 46,000 ramets. Each of the nurseries will now he expanded to 20.000 ramets per nursery and the setting up of a new nursery at Kahanynin ot 20,000 ramets. In implementing, this expansion, the (latch): Tree Biotechnology Project will strengthen its structure in form of a limited liability company wholly owned by Uganda Gatsby Trust to produce 1.5 million plantlets per annum by 2012. Equity investment will be sought for further capitalisation.