Smallholder tea farmers are set to receive KSh649 million as dividend for the financial year ending June 30, 2019.
The farmers affiliated to Kenya Tea Development Agency (KTDA) will receive the monies it’s 69 affiliated factories across the country.
“The tea factories, through resolutions of their directors, have resolved to pass the dividends received from KTDA holdings directly to the farmers who are the shareholders of the tea factories that own KTDA (H) Ltd,” said the company in a statement.
The subsidiaries include KTDA Management Services that deals with the management of the tea factory companies in line with the recommendations made by the Tea Industry Taskforce of 2007; KTDA Power which is involved in power generation aimed at reducing the cost of energy for factories; Greenland Fedha which facilities easy access to credit for farmers, and KETEPA, which is KTDA’s value addition arm that blends and packages tea for local consumption and export.
Others (subsidiaries) are Chai Trading Company Limited whose mandate is warehousing, blending, clearing and forwarding, value addition, export and general tea trading; Majani Insurance Brokers which was established to provide insurance brokerage services for tea factories and KTDA Group companies; Tea Machinery & Engineering Company Ltd – established to provide a modern workshop for fabrication and assembly of tea machinery for tea factories, and KTDA Foundation which focuses on corporate social investments”, notes a statement from KTDA.
The management said according to its annual audited accounts indicate that dividends have consistently been paid to its shareholders who are the factory companies.
30th June 2019, the KTDA subsidiaries declared a dividend payout of Kshs 649 million which an annual general meeting held in November 2019 resolved to distribute to farmers.
“In observance of corporate governance rules, the pay slips farmers will receive from their respective factory companies will now show the actual dividend payments accrued from the subsidiaries, separate from normal monthly payments for the delivery of tea,” added the statement.
KTDA made a profit of KSh2.8 billion last year from KSh2.5 billion that it recorded in the previous year.