NAIROBI, Kenya, July 8 – Farmers affiliated with Kenya Tea Development Agency have started receiving Sh37.1 billion as the final payment (bonus) for the Financial Year ending 30th June 2022 with factories in the west of Rift having the highest improvement in payment with an average rate increase of more than 55 percent.
Overall, the earnings disbursed to farmers represented a significant increase over the Sh21 billion paid out in the previous financial year.
Farmers have also been paid over half-a-billion shillings (Sh519 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.
Farmers in different factories earn varying amounts in bonus payments depending on the performance of their individual factories.
These rates are declared by the respective factory boards based on Accounts that shall be ultimately tabled in shareholders’ AGM.
Factories which recorded the highest increment in total payment (monthly and bonus) this year include Sanganyi which paid its farmers total payment of Sh48 for each kilo of green leaf compared to Sh24 in the previous financial year (2020/21).
Disbursement of these payments to farmers marks the close of the financial year ending June 2022 that 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 a number of 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 farmers 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.
Kiamokama had an 84 percent improvement with total payments to farmers jumping from Sh22 to Sh40.50.
Kapsara recorded an improvement of 81% from Sh22 to Sh40.
The improved earnings were a result of the reserve price introduced in July, better tea prices, and favourable exchange rates.
