Williamson Tea, Kapchorua Tea raise dividends above profits as retained earnings support higher shareholder payouts
Williamson Tea and Kapchorua Tea have announced significantly higher dividends, funded partly by retained earnings, despite reporting lower revenues during the 2025/26 financial year.
KENYA – Listed tea producers Williamson Tea Kenya and Kapchorua Tea Kenya have announced substantially higher dividend payouts for the financial year ended March 2026, with both companies drawing on retained earnings to distribute amounts that exceed their annual net profits.
According to Business Daily, Williamson Tea Kenya tripled its total dividend payout to Kes 525.3 million (US$4.06M), up from Kes 175.1 million(US$1.35M) paid in the previous year, despite reporting a net profit of Kes 120.7 million (US$932.05K).
The company declared a first and final dividend of Kes 15 per share, compared with Kes 10 per share a year earlier. The higher payout also reflects the doubling of the company’s issued shares to 35.02 million following a one-for-one bonus issue approved in October 2025.
The dividend will be paid to shareholders on record as of July 31, with the company drawing part of its Kes 4.4 billion (US$33.98M) retained earnings to fund the distribution.
Williamson Tea returned to profitability after posting a net loss of Kes 166.4 million (US$1.28M) in the previous financial year.
Although revenue declined by Kes 708 million (US$5.47M) to Kes 3.4 billion (US$, cost-cutting measures reduced its operating loss to Kes 41.5 million (US$320.46K) from Kes 392.2 million (US$3.03M). Higher plantation valuations and stronger investment income also contributed to the improved bottom line.
“Crop production remains lower than last year due to strict quality controls on bought leaf combined with a dry spell experienced earlier in the year and continued lower than average rainfall,” Williamson Tea said.
Affiliate company Kapchorua Tea Kenya also increased its dividend payout by 140% to Kes 469.4 million (US$3.62M) from Kes 195.6 million (US$1.51M). The company declared a dividend of Kes 30 per share, up from Kes 25 previously, after doubling its issued shares to 15.6 million through a one-for-one bonus issue.
Kapchorua reported a net profit of Kes 196.9 million (US$, compared with Kes 181.1 million (US$1.4M) a year earlier, and will finance the enhanced dividend using part of its Kes 1.6 billion (US$12.36M) retained earnings. Revenue, however, declined to Kes 1.6 billion (US$ 12.35M) from Kes 2.2 billion (US$16.99M).
Looking ahead, Williamson Tea expressed concern over rising industry costs.
“We hope that the opening of the Strait of Hormuz will reduce geopolitical pressures and assist the market but cost pressures and economic uncertainty are expected to continue,” the company said.
“The board is increasingly concerned by the continued growth in sector-specific taxes, levies and regulatory costs at both national and county levels which affect the industry’s long-term competitiveness and all stakeholders.”
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