The Kenya Tea Development Agency (KTDA) has advised its directors to remain firm and follow the procedures when declaring final payments for the year 2023/2024.
In the past week, tea factories have faced a wave of unrest coupled with the low bonus payment delayed by the directors.
KTDA Holding Chairman Enos Njeru told the factory directors to adhere to the standards to avoid plunging the tea sector into potential financial losses.
In a communication to the factory's leadership dated September 19, Njeru observes that the factory boards are faced with challenges at this crucial duration of bonus declaration.
He, however, emphasized that the factory directors should not expose the shareholders to further financial strain through borrowing not supported by the company's financial capacity.
The directors, he said, have a noble duty to the shareholders, which they must exercise with diligence in fulfilling the responsibilities.
The communication comes when tens of farmers allied to Githambo, Gachege Michimikuru tea factories are protesting over the low bonus payment declaration.
“As we proceed with the declaration of final payments for the financial year 2023/24, based on the audited financial accounts of each factory company, we have received requests from shareholders and farmers to reassess the final payments, in light of these audited financial statements,” said the chairman.
Moses Mwai a farmer in Murang’a blames the wave of unrest to miscommunication peddled by politicians out to sabotage the tea sector.
Mwai said the politicians incited the farmers without explaining to them the consequences of increased prices of green leaf from Sh21 to Sh25.
In the already declared second payments, the leading factories are Makomboki at Sh62.50, Njunu at Sh62.20, Ngere at Sh62, Nduti and Sh60.90, and Imenti at Sh60.30.
