The Kenya Tea Development Agency Management Services ((KTDA- MS) Limited has released the bonus for its 54 tea factories.
The Sh28 billion is the final dividend for the year ended June 30, 2020 and brings the total payment for the year to Sh52 billion up from 46.5 billion the previous year.
KTDA managed smallholder tea factories recorded a 14 percent jump in revenue in the year ended June 30, 2020. Revenues rose to Sh79 billion from Sh69 billion in the previous year driven by increased green leaf production.
On average, 4.5kgs of green leaf make one kilogram of processed tea.
Increased green leaf production by the factories grew by 29 per cent for the year to stand at 1.45 billion kilograms compared to 1.13 billion kilograms over a similar period last year, as well as a more favorable exchange rate.
KTDA Managing Director, Alfred Njagi said other than for a few factories whose crop did not increase materially for various reasons, on average, tea farmers will take home higher earnings this year on the back of increased tea production due to good weather, which was further supported by a favorable currency exchange environment.
The increased bonus payment comes at a time when the agency is rocked in a bitter tussle with the government over the management and payment of tea bonuses.
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