In a significant development for smallholder tea farmers in Kenya, the Tea Development Agency (KTDA) Holdings Ltd has announced the distribution of Sh584.8 million in dividends for the financial year ending June 30, 2022.
This welcome news comes as a testament to the farmers' hard work and dedication.
According to a statement released by KTDA, the dividend payment will be channeled to the farmers through their respective factories, which collectively represent the 54 corporate shareholders of KTDA Holdings Ltd.
This approach ensures that the financial benefits reach those who contributed to the green leaf deliveries during the 2021/2022 financial year.
Profits generated by KTDA holdings & its subsidiaries
The dividends awarded to the farmers are derived from the profits earned by KTDA Holdings and its subsidiaries, including KTDA MS, KTDA Power, Majani, Insurance Brokers, Greenland Fedha, Chai Trading and Warehousing, TEMEC, and KETEPA.
This holistic approach ensures that the financial gains from the tea industry are shared among those involved in its various aspects.
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The dividends will be disbursed to the farmers through their respective banks alongside the May 2023 green leaf payment on June 8, 2023.
This streamlined approach simplifies the process for the farmers and ensures timely access to their financial rewards.
Reforms promoting tea farmers' welfare
KTDA has been actively committed to the continuous improvement of farmers' welfare and the advancement of their interests.
As part of this ongoing effort, monthly payments to farmers have been rescheduled to the first five working days of the subsequent month.
This adjustment aims to provide farmers with a more predictable and reliable income stream.
KTDA implements new management agreements
In line with their reform agenda, KTDA has been working towards implementing new management agreements.
KTDA CEO Wilson Muthaura confirmed that over 90 percent of tea factories have already signed the new agreements.
As part of these agreements, the factories will contribute 1.5 percent of their gross earnings annually as service provider fees to KTDA management services.
This move will support sustainable and efficient management practices within the tea industry.