Farmers affiliated with Kenya Tea Development Agency have started receiving Ksh 37.1 billion as the final payment (bonus) for the Financial Year ending 30th June 2022 and monthly payment for June green leaf, representing a significant increase over the Ksh 21 billion paid out in the previous financial year.
Farmers have also been paid over half-a-billion shillings (Ksh 519 million) as dividends from KTDA Holdings subsidiaries within the same payment disbursement.
KTDA has invested in profitable subsidiaries along the tea value chain, and their profits are shared out as dividends to the farmers.
Disbursement of these payments to farmers marks the close of the financial year ending June
2022 which has seen a major recovery in growers’ fortunes.
The pay slips farmers will receive from their respective factory companies will show the actual dividend payments, June monthly payments, final payment, and other farmer-specific transactions.
“The performance in the just concluded financial year has been the best farmers have had in several years. As we continue to implement reforms, deploy technology and make our
processes more efficient across the business, we expect to sustain this growth trajectory and
put a smile on our farmer’s faces,” KTDA Holdings chairman David Ichoho said.
“The payments will come in handy as we take our children back to school and will help us easily
handle the upcoming financial obligations.”
This is the first time the final payment is being made in July. Traditionally, the payment was
made in October.
The change is part of reforms to streamline farmers’ payments to better respond to their financial needs.
Farmers in different factories earn varying amounts in bonus payments depending on the performance of their factories.
These rates are declared by the respective factory boards based on Accounts that shall be ultimately tabled in the shareholders’ AGM.
Factories in the west of Rift had the highest improvement in payment with an average rate
increase of more than 55%.
Factories that recorded the highest increment 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 compared to Ksh 24 in the previous financial year (2020/21).
Kiamokama had an 84% improvement with total payments to farmers jumping from Ksh 22 to Ksh 40.50.
Kapsara recorded an improvement of 81% from Ksh 22 to Ksh 40.
The improved earnings were a result of the reserve price introduced in July, better tea prices, and favorable exchange rates.
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