Tea Farmers to Earn Sh585M in Dividends

For the fiscal year that ends on June 30, 2022, smallholder farmers affiliated with Kenya’s Tea Development Agency (KTDA) Holdings Ltd. will receive Sh584.8 million in dividends.

The money is payable to farmers through their factories, which are the 54 corporate shareholders of KTDA Holdings Ltd., according to a statement from the agency.

The dividend payment is based on the green leaf delivered for the 2021/2022 financial year ended June 30, 2022.

The dividends are obtained from the earnings of KTDA Holdings and its subsidiaries, which include TEMEC, KETEPA, KTDA MS, KTDA Power, Majani, Insurance Brokers, and Greenland Fedha.

On June 8, 2023, the funds will be sent to banks along with the May 2023 green leaf payment.

Farmers’ monthly payments were moved to the first five working days of the next month as part of the reform program.

The KTDA is still dedicated to advancing farmers’ interests and continuously improving their welfare.

KTDA affiliates have been deliberating and approving new management agreements for the past three months.

By the end of last week, more than 90% of all tea factories had signed the new management agreement, according to KTDA Chief Executive Officer Wilson Muthaura.

Under the terms of the agreement, tea factories will annually pay service provider fees to KTDA management services equal to 1.5% of their gross earnings.