Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


KTDA To pay farmers Sh649mn dividends

NAIROBI, Kenya, Jun 3- Smallholder tea farmers affiliated to KTDA managed factories will this month receive Sh649 million from their tea factories, being dividends received from KTDA Holdings Ltd and its subsidiaries for the financial year ending 30th June 2019.

In a statement, the Agency refuted claims that there have been no dividends received by factories and tea farmers from their investments in KTDA Holdings and its subsidiaries in the recent past. 

The agency said it’s annual audited accounts is proof that dividends have consistently been paid to its shareholders who are the factory companies.

“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,” KTDA said in the statement.

“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, ” it continued.

The subsidiaries are; KTDA Management Services that deals with 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 facilitates 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 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.

These subsidiaries operate along the tea value chain by taking advantage of economies of scale to provide critical services to factories and farmers at competitive rates. The generated dividends are enjoyed by the factories and their farmers and are reflected in the respective books of accounts.

KTDA claimed that over the last five years, factory companies have received more than Sh3.7 billion in dividends from KTDA and its subsidiaries’ business activities, the amounts having been previously consolidated.  Based on the different sectors and regulatory regimes, the various subsidiary companies are governed by different regulatory institutions in the country.

Advertisement. Scroll to continue reading.

“The payment is over and above what farmers earn as monthly or initial payment.”

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...