KTDA to hold factory meetings to deliberate tea bonus

Factories managed by Kenya Tea Development Agency (KTDA) will this week hold meetings to approve the accounts for the 2019-20 financial year, paving way for declaration of bonus payments.

KTDA Management Services Managing Director Alfred Njagi said in determining the final payment, individual factories consider the revenue generated from tea sales, other income including interest from investments and dividends from KTDA Holdings.

“Dividends payable to the shareholders or farmers and taxes to the government, if any, are deliberated in these meetings. This decision is made by the respective factory boards, which consist of elected farmers’ representatives from each tea growing electoral area," he said.

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At least 54 factories will be holding the meetings that come against the backdrop of increased green leaf production, which grew by 29 per cent for the year ended June 30, 2020.

Total production for the factories was 1.45 billion kilogrammes compared to 1.13 billion kilogrammes last year. On average 4.5kg of green leaf make one kilogramme of made tea.

The average price for a kilo of sold tea fell by 8.1 per cent to an average 12-year low of $2.38 (Sh257) compared to $2.59 (Sh279) in 2019.

Towards the end of June this year, the average price for a kilo of made tea at the Mombasa auction dropped below $2, a scenario last seen in 2007.

This was a result of increased production, coupled by reduced demand in major global markets owing to the disruptions caused by Covid-19.

However, with increased volumes of tea sold at the auction and favourable currency exchange rate, it is expected that total revenues will marginally increase this year compared to last year. 

Meanwhile, on September 7, Agriculture CS Peter Munya has slammed the Judiciary for issuing orders which have a negative impact on agriculture-related projects facilitated by the government.

Munya claimed some reforms in the agricultural sector have stalled due to orders issued by courts.

He cited cases involving the Kenya Tea Development Agency (KTDA) and irrigation projects as some of the suits that have delayed the reform process.

“Thiba Dam completion is another state project funded by JICA that has delayed for six years, due to litigation-related issues that have forced the government to pay penalties running into millions of shillings."

The KTDA application was declared urgent by the court in June only to be allocated a hearing date three months later, he said.

Speaking at Ndakaini Dam in Murang’a during a meeting with farmers' representatives from 10 tea factories, the CS said the government is determined to rescue small-scale holders through formulation of effective regulations.

He was with Agriculture Food Authority Interim Director Anthony Muriithi and MPs Nduati Ngugi (Gatanga) and Sabina Chege (Murang’a), who supported the regulations.

The meeting was attended by KTDA directors from Murang’a and Nyeri who also backed the regulations.