The Boards of Williamson and Kapchorua Tea Kenya Plc have announced that both companies have been granted permission by the Capital Market Authority (CMA) to issue bonus shares at a ratio of 1:1. Each existing shareholder will receive one bonus share for every one share they already own, and in order to qualify for the bonsus shares, one must be listed as a shareholder by the close of business Monday 13th October 2025.
The company share registers will be closed from Tuesday 14th October to Friday 17th October in order to allow time for issuing the share bonus shares. The increase in the bonuses is a generous way to reward the shareholders among other ways.
As of 31st March 2025, Williamson Tea Kenya had 17,512,640 shares on its register, while Kapchorua Tea Kenya’s shares totaled 7,824,000. The issuance of the bonus shares on a 1:1 ratio will double the shares outstanding, resulting in 35,025,280 shares for Williamson Tea Kenya and 15,648,000 shares for Kapchorua Tea Kenya. This increase is expected to enhance liquidity and attract further investor interest.
The issuance of this bonus has come at a time where NSE is seeking to attract more investors due to their low trading activity. This is likely going to give NSE an opportunity to earn more investors and thereby increase in its trading volumes. The increase in shares issue does not affect the overall market structure of the company. The shareholders do not receive an immediate cash however the shares are diluted and thereby attracting new investors and make stock more affordable.
Williamson and Kapchorua have been established long ago and marks Kenya’s top tea producers and this move by the CMA is likely going to improve their shareholders stake in the market thereby attracting more investors. This move will increase shares to be traded for both companies in the secondary market. Kenya being one of the world’s largest exporter of black tea, this sector has contributed significantly to these exports and job creation.
Williamson and Kapchorua are demonstrating a resilient performance and strong cost management aligned with their strategic goals. The companies have also diversified their activities by establishing different tea products. The issuance of these shares will be a reflection of the company’s financial health and a stepping stone for the company toward its goals.
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