Individual smallholder tea farmers affiliated with the Kenya Tea Development Agency Holdings Ltd (KTDA Holdings PLC) will now own direct shareholding of the company alongside their respective 54 Tea Factory Companies, further cementing their ownership and proprietorship in the organization.
In a press release issued by the Tea Development Agency, they said the move follows the resolutions of the KTDA Holdings shareholders, at a Special General Meeting (SGM) held in April this year, to amend the company’s Articles of Association to enable the allotment of the company’s shares to individual farmers under a new category of shareholders known as “Tea Farmers.”
The agency says that over 620,000 individual tea farmers spread out across Kenya will collectively own 5 million ordinary shares, with the 54 Factory Companies where the same tea farmers are shareholders holding 24 million ordinary shares in KTDA Holdings PLC.
In the statement released by the agency, they also noted they have approved the future passage of the listing of KTDA in the Nairobi Securities Exchange.
To safeguard the farmer from unscrupulous share buyers, the shareholders locked the tradability of the allotted shares for ten years.
Additionally, shareholders must approve any disposal of company property exceeding the value of 1% of the value of the total value of KTDA Holdings PLC. The shareholders have safeguarded their property and require full explanation at a General Meeting for any disposals of such kind.
Other significant changes to the company articles passed by the shareholders include voting for all company directors on the floor at the Annual General Meetings. This new process does away from the previous nomination where only directors of factories in a zone were involved in the zonal nomination exercises.
In a circular issued within the week, tea farmers have been requested to visit their buying centers to know their respective share allotments.