Tea farmers who are in a joint business with Kenya Tea Development Agency (KTDA) will receive Sh649 million worth of dividend this month, from their respective factories.
The dividends are for the year ending June 30, 2020. As of last year, KTDA made a profit of Sh2.8 billion, which was a rise of 12 percent from Sh2.5 billion that was registered the previous year.
In 2018, the farmers were paid Sh691 million dividends, which was a drop of 1.16 percent. The decline was largely attributed to the fall of tea earnings.
“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,” said the company in a statement.
“In observance of the corporate governance rules, the payslips farmers will receive from their respective factory companies will show the actual dividend payments accrued from the subsidiaries, separate from normal monthly payment for the delivery of tea, ” added the statement.
The company payout comes at a time when some firms have suspended payment of dividends in an effort to preserve cash during these tough financial times caused by the global pandemic.