Smallholder tea farmers receive Sh184M payouts

Smallholder tea farmers affiliated to KTDA managed factories have begun receiving Kshs 184 million from their tea factory companies, being dividends declared by factory companies for the year ended 30th June 2020. These dividends are separate from the ones declared by KTDA Holdings’ and its subsidiaries in December last year.

The dividends payments come on the back of enhanced green leaf production over the same period which led to growth in total revenues for the year. This is despite the ongoing Covid-19 pandemic that has disrupted supply chains across the globe.

Tea factory companies are business entities owned by smallholder farmers who are shareholders in their respective factories. In the course of business, the tea factory companies declare dividends which are then distributed to farmers as shareholders.

Farmers are receiving these dividends together with the December 2020 green leaf payments.