Tea farmers to earn Sh585m in dividends

Tuesday, June 6th, 2023 05:10 | By
Tea farmers to earn Sh585m in dividends
Tea farmers to earn Sh585m in dividends

EXPORT: Smallholder farmers affiliated with Kenya’s Tea Development Agency (KTDA) Holdings Ltd will receive Sh584.8 million as dividends for the financial year ending June 30, 2022.

A statement from the agency says the money is payable to farmers through their factories which are the 54 corporate shareholders of KTDA Holdings Ltd.

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

The dividends are derived from the profits made by KTDA Holdings and its subsidiaries which include, KTDA MS, KTDA Power, Majani, Insurance Brokers, Greenland Fedha, Chai Trading and Warehousing, TEMEC and KETEPA.

New management deals

The money will be dispatched to banks alongside the May 2023 green leaf payment on June 8, 2023.

As part of the reform agenda, monthly payment for farmers was rescheduled to the first five working days of the subsequent month.

KTDA remains committed to the continuous improvement of farmers’ welfare and promoting their interests. For the last three months, KTDA affiliates have been discussing and approving new management agreements.

KTDA chief executive officer  Wilson Muthaura confirmed that by the end of last week, more than 90 per cent of all the tea factories had signed the new management agreement whereby they will pay 1.5 per cent of their gross earnings to the KTDA management services as service provider fees every year.

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