KTDA to Pay Sh734M Dividends For Its Tea Farmers
The Kenya Tea Development Agency (Holdings) Limited has declared a Sh734 million dividend for its smallholder tea farmers for the financial year ending 30th June 2020.
This year’s declaration represents a 15 percent increase from the previous year’s dividend of Sh683 million and comes on the back of enhanced green leaf production over the same period which led to growth in total revenues for the year.
To ensure farmers benefit from the tea value chain, KTDA has established subsidiary businesses which have led to this increased revenue.
Commenting on the declaration, KTDA Holdings Limited Chairman, Peter Kanyago, said,
“Group revenues grew last year, driven mainly by increased tea sales volumes. Increased tea production led to high stocks at the peak of Covid-19 and exerted considerable pressure on working capital within the Group. The Board has proposed a dividend of Sh734 million compared to last year’s Sh683 million, a welcome performance in an otherwise very difficult year.”
He added that the company is continuously working on addressing the cost of production to enhance farmers’ earnings.
“We continue to address the escalating cost of production through various ongoing initiatives, the latest being the seasonal labour outsourcing and energy efficiency programs,” he said.
Commenting on the same, KTDA Holdings Group CEO, Lerionka Tiampati, said the average cost of production had declined by 6.6 percent on the back of effective cost-containment measures.