KTDA TEA RECORD BONUS TO BE PAID THIS MONTH (OCTOBER)

CEO, Mr. Lerionka Tiampati announcing the resultsDespite challenges facing the tea industry, particularly the sharp increase in the cost of electricity, fuel and other key production inputs, KTDA Managed factories have posted impressive results.

Nairobi, Monday, October 3, 2011

Small-scale tea farmers countrywide will receive a total of Ksh30.5 Billion as Second Payment, popularly known as bonus, from the end of October following the recent announcement by the Kenya Tea Development Agency (KTDA) of yet another year of record earnings.
KTDA’s CEO, Mr. Lerionka Tiampati, announced a record payout for small-scale tea farmers, standing at Ksh40.5 Billion, surpassing last year’s historic earnings. The payout to farmers has risen from the historic Ksh38.2 Billion earned in the 2009/2010 financial year, making it the third year in a row of impressive performance. In the previous year, the payout was Ksh25.4 Billion.
Out of the Ksh40.5 Billion from the 2010-2011 financial year, Ksh10 Billion
has already been paid to farmers as initial payment, which is done on a monthly basis over the financial year at an average rate of Ksh12 per kg of green leaf delivered.

The balance of Ksh30.5 Billion will be released as Second Payment.

The average rate of pay for the Second Payment has risen from Ksh31.52 to Ksh36.40 per kg of green leaf delivered. That brings the total pay per kilogramme of green leaf to Ksh48.40, up from Ksh43.76, on average, maintaining the position of Kenya’s small-scale tea farmers as the highest paid in the world.
Announcing the results on September 23, Mr Tiampati, attributed the impressive results to stable tea prices, favourable exchange rates, efficient management of factory processes and effective cost management through ongoing automation of field and factory operations.

He said the average net selling price per kilogramme of made tea increased by 6.5 per cent from Ksh233.72 in 2010 to Ksh248.95 in 2011.

Although the cost of electricity, fuel and imported inputs, such as fertilizer and machinery, had risen sharply over the year, causing farmers a lot of anxiety, Mr Tiampati said it was commendable that the factories had managed to record a 6 per cent increase in total revenue.
Total gross revenue rose from Ksh51.7 Billion in the 2009-2010 to Ksh54.6 Billion in the 2010-2011 financial year, representing a 5.6% increase. With costs held at 25 per cent of total revenue, the average return to farmers for green leaf deliveries was 75 per cent.

KTDA manages a total of 65 tea processing factories located across all of Kenya’s tea growing counties. These factories are owned by 54 Tea Factory Companies, whose shareholders are the more than 560,000 small-scale tea farmers who are also the suppliers of the leaf.
Related Photos;                                                                                                                                               . [ Download the Results ]

KTDA Board members and senior managers follow keenly CEO’s presentation during the press conference held at Hilton Hotel, Nairobi.
It was a joyful moment as the hard work produces positives results
Heads together; clock wise from left, Tim Chege MD Ketepa, Mumbi Gitonga—GM Majani Insurance Brokers, Mr Alfred Njagi General Manager Operations and Board Members Chege Kirundi and Eng. Wakimani
For more information, please contact:
KTDA Corporate Affairs Department
Tel 3227000, 3227915

Charles Kimathi
Head of Corporate Affairs
0712-219-229