This archive report was first published on 30 June 2021.
On June 30, 2021, Williamson Tea made headlines by announcing a KSh175.1 million dividend payout to its shareholders, a move that has left many in the business community perplexed. The company's decision to pay a dividend comes despite posting a net loss of KSh146 million for the period that ended on March 31, 2021.
According to the tea company's financial statement, the factors that led to the firm's huge loss include an oversupply of tea, low demand, global economic downturn, concerns over the pandemic, and currency fluctuations. Williamson Tea also blamed the newly ratified Tea Act, 2020 for its poor financial performance.
Interestingly, the firm's operating revenue rose by 23% to KSh3.73 billion on March 31, 2021, from KSh3.03 billion reported on March 31, 2020. However, Williamson Tea's loss from operations climbed to KSh163.2 million in the period under review, from KSh20.7 million in March 2020.
Williamson Tea is one of seven agricultural companies listed on the Nairobi Securities exchange and is among the oldest tea companies in Kenya, having been in business for more than 150 years.
