Farmers await bonus payment as protest rocks some factories

KTDA Chairman Enos Njeru at a past meeting in Nairobi. [Boniface Gikandi, Standard]

Anxiety has gripped the tea sector as factory directors analyse financial statements aimed at declaring annual bonuses for release to 880,000 farmers mid-next month.

This year’s second payment is pegged on last year’s green leaf production of more than 1.4 million kilogrammes (kgs).

As the directors representing 71 factories hold meetings with KTDA Management Service officials, Imenti Factory in Meru has already declared the highest dividend payment of Sh60.30 for the delivery of 22.45 million kgs. 

The approved amount is higher than that of the previous year which was Sh52.10.

As the bonus declaration process continues farmers estimated at 880,000 are keenly following allocations to the respective factories based on annual production of the green leaf.

Imenti payment reflects a huge increase with the farmers led by Jamleck Mwarania celebrating.

“In the year, despite the tea directors’ campaigns, the farmers remained focused on maintaining quality for their produce thus attracting the best prices in the market,” said Mwarania who spoke in Meru town. 

KTDA Holdings Chairman Enos Njeru said the directors have started holding meetings dedicated to the declaration of the annual bonus.

The meetings, he said, began on Monday last week and are expected to be completed on September 20. Mr Njeru said in the crop year under review the production increased following favourable weather conditions.

“KTDA Holding leadership is working on programmes that will ensure the farmers produce quality products for the international markets,” said Njeru. 

 He added that quality production reduces the old stocks in the warehouses.

“Since 47,400 tonnes of fertilisers docked in the Mombasa port on Friday, they will be transported to the counties, to ensure in the coming months farmers will deliver the best quality for the market,” said Njeru.

Kiambu-based tea farmer Samson Ngugi said the bonus declaration exercise has been completed, with the farmers aware of the outcome after the factory financial statements for the year that ended on June 30 were analysed.

“So far, Kambaa Factory in Kiambu after the directors approved payment of Sh50.65 per kilogramme of green leaf. In the approval Theta/Ndarugu Sh50, Mataara Sh48.10, Kagwe Sh44.25, and Gachege Sh46.30,” said Ngugi. 

In the west of Rift, Momul tea factory the growers will share sH1.8 billion at the rate of Sh50.30 per kilogramme up from the previous of Sh44.80.

In Murang’a County, Githambo tea factory chairman Joseph Karanu said the directors approved payment at Sh42 per kg,  for the 25 million kilos of green leaf delivered for processing.

KTDA Board Zone Two board member James Githinji said farmers are interested in the production of good quality eyeing better payment. “The issue of quality will not be compromised as our existing market has remained due to the unique taste of our tea,” said Githinji.