KTDA chairman Enos Njeru addressing the media as the agency CEO Wilson Muthaura and vice-chairman Eric Chepkwony listens
By MKT Correspondents
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, 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.
“The 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,” 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 farmers’ 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 the 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.
“There 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,” he stated.
“We 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,” 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.
Similar Posts by The Mt Kenya Times:
- Pan-African leaders call for borderless Africa and urgent continental unity
- Pan-African leader calls for unity, youth empowerment and economic transformation
- Wantam or Tutam: The then what next?
- Gachagua escalates war with Ruto, questions his security
- Uhuru draws the line
About the Author
