Smallholder tea farmers affiliated to factories managed by Kenya Tea Development Agency (KTDA) have started receiving Sh184 million from their tea factory companies in dividends.

The dividends were declared by factory companies affiliated to KTDA for the year ended June 30, 2020.

The agency says the declared dividends being paid out are separate from the ones declared by KTDA Holdings and its subsidiaries in December last year.

The dividend payments come following enhanced green leaf production across Kenya over the same period, which led to increase in total revenues for the year.

The dividends were declared despite the adverse effects occasioned by the Covid-19 pandemic in the country that has disrupted the supply chains across the globe.

Tea factory companies are business entities which are owned by smallholder farmers who are also shareholders in their respective factories.

In the course of business, the tea factory companies declare dividends which are then distributed to farmers as shareholders of the said firms.

The KTDA-affiliated tea farmers will be receiving their dividends together with their December 2020 green leaf payments.