The idea by Kenya Tea Development Agency Holdings (KTDA) to convert farmers into the company’s direct shareholders has been abandoned; ownership remains through the tea factories.

Following a special general meeting in April 2021 where the company’s Articles of Association were amended to permit the allotment of shares to individual farmers, the agency’s previous board approved the choice to have farmers become individual investors under a new class of shares called “Tea Farmers.”

Nonetheless, Chairman David Ichoho claims that after finding that some people intended to utilize direct shares to control the company, the decision was changed.

“We did not approve that because some individuals wanted to use that as a means of controlling KTDA Holdings, so we had to seal that loophole,” said Mr Ichoho.

“Some of the so-called individual shareholders are so wealthy that they would seek the control of the company,” he added.

The farmers were to get five million shares, which would have given them the opportunity to directly earn dividends in addition to their rights to the money received by their various tea companies.

Due to requirements like development initiatives and bill settling, the companies might not be able to distribute the entire payout to farmers.

“There have been no complaints from our farmers and they are comfortable as shareholders of KTDA through their respective factories,” he said.