The proposed project on up-scaling clonal tree technology to smallholder farmers in East Africa through the use of the tunnelling technique is aimed at providing a logical and necessary extension of an on-going project entitled "Tree Biotechnology Project" in Kenya Uganda and Tanzania, which is funded by the Gatsby Charitable Foundation (GCF) of the United Kingdom (UK) with technical backstopping from Mondi Forests (MF) of South Africa. Its main focus is to stimulate in a sustainable way the production, distribution and utilization of clonally derived Eucalyptus and other indigenous trees, geared towards impacting forestry in the region. The overall aim is to provide quality tree seedlings in a bid to help afforest the region, reduce environmental degradation, hunger and poverty by developing a sustainable production and access to affordable high quality seedlings by smallholder farmers. The key players in the project are the Tree Biotechnology Project at Karura who will train private nursery entrepreneurs in tunneling techniques to produce clones, the KEFRI, TAFORI, FORRI and Tree Biotechnology Projects in Kenya, Uganda, Tanzania, who will provide monitoring and evaluation as well as extension service, K-Rep, TGT and VEDCO who will train the nursery operators in credit management and administer the credit and ISAAA who will play a facilitative role. A budget of US$518,128.4 is estimated for a period of three years.