Small tea producers receive a bonus

Farmers affiliated with the Kenya Tea Development Agency have started receiving Ksh 37.1 billion the final payment (bonus) for the financial year ending June 30, 2022 and the monthly payment for June green leaf, which is a significant increase from the Ksh 21 billion paid out in the previous fiscal year.

Farmers also received over half a billion shillings (Kshs. 519 million) in dividends from KTDA Holdings subsidiaries as part of the same payout.

KTDA has invested in profitable subsidiaries along the tea value chain, and their profits are shared as dividends to farmers.

The disbursement of these payments to farmers marks the end of the financial year ending in June
2022 which saw a major recovery in the fortunes of producers.

The payslips farmers will receive from their respective factories will show actual dividend payments, June monthly payments, final payment and other farmer-specific transactions.

“The performance of the financial year which has just ended was the best that the farmers have had for a
number of years. As we continue to implement reforms, deploy technology and do our
more efficient processes across the business, we plan to maintain this growth trajectory and
put a smile on the face of our farmers,” said KTDA Holdings Chairman David Ichoho.

“The payments will come in handy when we get our kids back to school and will help us easily
manage future financial obligations.

This is the first time that the final payment has been made in July. Traditionally, payment was
done in October.

The change is part of reforms aimed at streamlining farmers’ payments to better meet their financial needs.

Farmers from different factories earn varying amounts in bonuses based on the performance of their individual factories.

These rates are declared by the respective factory councils on the basis of the accounts which will finally be deposited at the general meeting of shareholders.

West Rift factories saw the biggest payout improvement with an average rate
increase of more than 55%.

Factories that saw the biggest increase in total payment (monthly and bonus) this year include Sanganyi which paid its farmers a total payment of Ksh 48 for each kilo of green leaf, up from Ksh 24 in the previous fiscal year. (2020/21).

Kiamokama saw an 84% improvement, with total payments to farmers increasing from Ksh 22 to Ksh 40.50.

Kapsara recorded an 81% improvement from Ksh 22 to Ksh 40.

The improvement in profits is the result of the reserve price introduced in July, better tea prices and favorable exchange rates.


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Elaine R. Knight