KTDA Tea Factories Record a 14% Increase in Revenue in the 1H2020
Smallholder tea factories managed by the Kenya Tea Development Agency Holdings(KTDA) have recorded a 14% increase in revenue in the first half of the year.
The revenue increased to to Kes 79 billion from Kes 69 billion in the same period last year.
The increase was attributed to the rise in green leaf production which recorded a 29% increase from 1.13 billion Kilograms in 2019 to 1.45 billion Kilograms in the period ended 30th June 2020.
Despite the increase in the production, the price was relatively lower for the period as average price for a kilo of sold tea fell by 8.1% to an average of $2.38 per kilo compared to $2.59 per kilo in the same period in 2019.
KTDA Management Services said that its 54 managed tea factories will individually consider the revenue generated from tea sales and also other income including interest from investments, and dividends from KTDA holdings.
Alfred Njagi the KTDA Management Services Managing Director said that the factories will also focus on cost of operations, dividend payable to farmers/shareholders, and taxes to government if any.
KTDA expects tea factories to meet this week to review and approve the audited accounts ahead of declaring the final payment ‘bonus’ to farmers.