Smallholder tea farmers affiliated to Kenya Tea Development Agency (KTDA) managed factories will this week receive KShs 734 million from their tea factories. KTDA says this payment is in respect to dividends KTDA Holdings paid its tea factory shareholders for the financial year ending 30th June 2020 from its income earned from its subsidiaries.
“The payment is a 7.4% increase from the previous financial year when farmers were paid dividends of KShs 683 million. The money is part of other incomes earned by the tea factory companies and complements earnings from tea sales and interest. The tea factories through resolutions of their directors assigned the dividend income directly to the farmers who are the shareholders of the tea factories that own KTDA (H) Ltd. This is the second year that dividends are being made as a standalone payment directly to farmers and which reflected in farmers’ payslips,” says the statement from the ageny