๐๐๐๐ ๐๐ก๐๐ข๐ซ ๐๐ฌ๐ฌ๐ฎ๐ซ๐๐ฌ ๐ญ๐๐ ๐๐๐ซ๐ฆ๐๐ซ๐ฌ ๐จ๐ ๐ญ๐ซ๐๐ง๐ฌ๐ฉ๐๐ซ๐๐ง๐๐ฒ ๐ข๐ง ๐๐จ๐ง๐ฎ๐ฌ ๐๐ง๐ง๐จ๐ฎ๐ง๐๐๐ฆ๐๐ง๐ญ๐ฌ
Kenya Tea Development Agency (KTDA), National Chairman, Enos Njeru, has re-assured smallholder tea farmers that the bonus figures announced by factory directors adhered to the laid-down accounting standards.
In a statement to newsrooms on Friday evening, Njeru noted that the factories were bound to comply with a set of international standards before announcing the rates for the 2023/2024 financial year. He said that the rates for the second payment, popularly known as the bonus, were based on tea prices, tea volumes, as well as the production and operational costs of each factory.
โThe chairman wishes to reassure all stakeholders that the figures released by the factory companies are prepared in compliance with International Accounting Standards (IAS) and International Financial Reporting Standard (IFRS) as governed by the Institute of Certified Public Accountants (ICPK).
KTDA Management Service is an ISO-certified company and is bound to comply with these standards for the proper running of factory companies,โ Njeru said in a statement.
The reassurance comes in the wake of protests by a section of tea farmers from the tea-growing regions over low bonus rates.
While acknowledging that some factories might have been negatively impacted by the removal of direct sales and the minimum reserve price, Njeru expressed optimism that the farmersโ fortunes will change for the better as the government had opened the window for direct sales and the minimum reserve price had been removed.
In his statement, Njeru noted instances where some of the farmers had resorted to destruction of factory property and disruption of normal factory operations, saying this will have negative economic implications on the future of the sector.
โThere are various avenues that can be pursued to address the issues. Every year, factory companies hold AGMs, and during these meetings, the shareholders/farmers have the opportunity to review and query the financial reports, which is a normal practice,โ he stated.
โWe urge our farmers to remain calm and raise their concerns with their directors without resorting to destruction of company property and commit to working with all stakeholders to ensure our successful tea business is protected,โ added Njeru.
The agency had directed the 56 KTDA-managed factories to hold their Annual General Meetings between September 9-17 to approve the second payment for its over 600,000 farmers.
In Nyeri, all five major KTDA tea factories had by Friday approved bonus payments for smallholder tea farmers in the county.
The rates range from Sh 45.5 as the least amount that the farmers will get for every kilogramme of green leaf delivered, while the highest rate for the farmers is Sh 57.3 for a kilogramme.
Out of the five factories, farmers who deliver their green leaf to the Gathuthi will take home the highest amount of Sh57 per kilogramme. For the factory, this is a Sh 13 increase from last year when the farmers were paid at a rate of Sh 44 per kilogramme.
The board at Gitugi Tea Factory approved the payment of Sh 53 per kilo for the 2023/2024 financial year, which is a Sh 4 reduction of what the farmers were paid last year.
At the Chinga Tea Factory, the board approved the payment of Sh 50 per kilogramme for farmers affiliated to the factory.
Farmers from Iria-ini will be paid at Sh 46 per kilo, while those in Ragati will receive Sh 45.5 per kilo. This is a Sh 9 enhancement from last year when they were paid Sh 36 per kilo.
