- Njeru advised the farmers to channel their complaints through the various avenues that can be pursued to address the issues.
- It followed select incidences where some farmers destroyed factory property and interfered with the operations of their factories.
Image: FILE
KTDA has called for civility and advised tea farmers unsatisfied with the 2023-24 bonus payments to raise their concerns rationally through available official channels.
KTDA national chairman Enos Njeru appealed to the farmers to refrain from expressing dissatisfaction through destructive activities that negatively impact the businesses they have invested in for more than 50 years.
It followed a wave of protests on Wednesday across tea factories in the South Rift region where some farmers destroyed factory property and interfered with the operations.
Njeru said this has negative economic implications and will affect the future survival and profitability of the tea business.
He advised the farmers to channel their complaints through the available various avenues 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,” Njeru said in a statement.
“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,” he added.
A section of farmers have expressed concerns over the figures as factory companies managed by KTDA continue to announce audited figures for the second payment for the 2023-24 financial year.
Njeru, however, reassures all of them that the figures 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).
He said KTDA, being an ISO-certified company, is bound to comply with the standards for the proper running of factory companies.
“The rate for the second payment is based on tea prices, tea volumes, as well as the production and operational costs of each factory. These factors vary during the financial year and contribute to the second payment,” he explained.
He nonetheless pointed out that some factories have been negatively impacted by the removal of direct sales and minimum reserve prices as a consequence of increased production of more than 50 million kilogrammes compared to last year.
The chairman, however, expressed optimism that the window for direct sales has been opened by the government and the minimum reserve price which has negatively impacted some factories, has been removed.