Feb, 2nd 2021 – Small scale tea farmers affiliated to tea factories managed by the Kenya Tea Development Authority, (KTDA), have begun receiving Ksh184 million dividends from their tea factory companies for the year ended June 30th 2020. KTDA says that the dividends are separate from the ones declared by KTDA Holdings’ and its subsidiaries in December last year.
The dividends payments come on the backdrop of enhanced green leaf production over the same period which led to growth in total revenues for the year. This is despite the ongoing Covid-19 pandemic that has disrupted supply chains across the globe.
This also comes after the tea Bill was signed into law late last year , which will see the revival of Tea Board of Kenya and The Tea Research Foundation. The move seeks to facilitate prompt licensing of tea brokers and marketing of tea produce, making this activity more efficient and effective.
Tea auction organizers, buyers, and brokers will now have to ensure that the proceeds from the sale of tea are paid within 14 days, and the factory will now pay 50% of receipt of the sales to the farmers. As a result, therefore, KTDA (Kenya Tea Development Agency) will no longer have access to the money since it will now be controlled at the factory level.