KTDA managed smallholder tea factories recorded a 14 percent jump in revenue in the year ended June 30, 2020. Revenues rose to Ksh79 billion from Ksh69 billion in the previous year driven by increased green leaf production.
Green leaf production increased 29 percent to 1.45 billion kilograms compared to 1.13 billion kilograms over a similar period last year.
However, the price was relatively lower for the year seeing the average price for a kilo of sold tea fell by 8.1 percent to an average 12-year low of $2.38 per kilo compared to $2.59 per kilo in 2019.
For instance, toward the end of June 2020 the average price per kilo of made tea at the Mombasa Auction dropped below $2, a scenario last seen in 2007. KTDA attributes the decline in prices to increase in production, reduced demand for the product across major markets due to disruptions occasioned by COVID19, and an oversupply in the tea markets.
KTDA expects tea factories to meet this week to review and approve the audited accounts ahead of declaring the final payment ‘bonus’ to farmers.
KTDA Management Services says that its 54 managed tea factories will individually consider the revenue generated from tea sales, other income including interest from investments, and dividends from KTDA holdings.
KTDA Management Services Managing Director Alfred Njagi says that the factories will also deliberate on cost of operations, dividend payable to farmers/shareholders, and taxes to government if any.
Njagi adds that the respective factory boards consisting of elected farmers’ representatives from each tea growing electoral area will make these decisions. In the financial year 2018/19, the total turnover was Ksh69 billion and farmers were paid a total of Ksh46 billion for the green leaf delivered.
RELATED
