Kenya’s Tea Development Agency (KTDA) Holdings Ltd will distribute dividends totaling Sh584.8 million to smallholder farmers affiliated with the agency for the financial year ending June 30, 2022.
According to a statement released by the agency, the dividends will be paid to farmers through their respective factories, which serve as the 54 corporate shareholders of KTDA Holdings Ltd.
The dividend amount is determined based on the quantity of green leaf delivered during the 2021/2022 financial year, which concluded on June 30, 2022.
These dividends originate from the profits generated by KTDA Holdings and its subsidiaries, including KTDA MS, KTDA Power, Majani, Insurance Brokers, Greenland Fedha, Chai Trading, and Warehousing, TEMEC, and KETEPA.
The funds will be disbursed to banks simultaneously with the May 2023 green leaf payment on June 8, 2023.
As part of the ongoing reform agenda, the monthly payments to farmers have been rescheduled within the first five working days of the following month.
KTDA remains dedicated to continually enhancing the welfare of farmers and advancing their interests. Over the past three months, KTDA affiliates have engaged in discussions and approved new management agreements.
Wilson Muthaura, the Chief Executive Officer of KTDA, confirmed that as of the end of last week, more than 90 percent of all tea factories had signed the new management agreement.
Under this agreement, the factories will pay 1.5 percent of their gross earnings annually to KTDA Management Services as service provider fees.