Williamson Tea Kenya, Kapchorua Tea pay George Williamson US$4.5M dividends and royalties
Higher dividends, bonus share issues and royalty payments boosted George Williamson’s returns from its Kenyan tea subsidiaries during the year ended March 2026.
KENYA – British multinational George Williamson & Co received Kes 582.6 million (US$4.5M) in dividends and royalty payments from its Kenyan subsidiaries, Williamson Tea Kenya and Kapchorua Tea, during the year ended March 2026, marking a 76% increase from Kes 330.94 million (US$2.56M) in the previous financial year.
According to Williamson Tea Kenya’s latest annual report, royalty and licence fee payments to the British parent company rose to Kes 135.25 million (US$1.04M), up from Kes 106.32 million (US$821.3K) a year earlier.
The Nairobi Securities Exchange-listed tea producer also distributed Kes 270.37 million (US$2.1M) in dividends to its parent after declaring a dividend of Kes 15 per share, compared with Kes 90.12 million (US$696.4K) paid in the previous year when shareholders received Sh10 per share.
Kapchorua Tea also contributed significantly to George Williamson’s earnings. Although its royalty and licence payments declined to Kes 64.51 million (US$498.5K) from Kes 87.67 million (US$677.3K), dividends paid to the British parent increased sharply to Kes 112.47 million (US$868.9K), compared with Kes 46.83 million in the previous financial year.
Royalty payments are typically made by subsidiaries to parent companies for the use of intellectual property, including trademarks, patents, software and trade names. Neither Williamson Tea Kenya nor Kapchorua Tea disclosed the specific intellectual property or licensing agreements covered by the payments.
George Williamson holds a 51.46% stake in Williamson Tea Kenya through Ngong Tea Holdings Limited, equivalent to 18.02 million shares.
The shareholding doubled after Williamson Tea issued a one-for-one bonus share in October 2025, increasing Ngong Tea Holdings’ stake from 9.01 million shares to 18.02 million shares.
Combined with the higher dividend per share, the bonus issue resulted in a threefold increase in the total cash distribution received by the parent company between 2025 and 2026.
Kapchorua Tea also implemented a one-for-one bonus share issue, increasing George Williamson’s direct shareholding from 1.87 million shares to 3.75 million, representing a 23.96% stake. Williamson Tea Kenya also owns 39.56% of Kapchorua Tea, making it an associate company.
Kapchorua increased its dividend from Kes 25 per share to Kes 30 per share, lifting George Williamson’s dividend income while also paying Kes 185.7 million to Williamson Tea Kenya, compared with Kes 77.4 million the previous year.
Both companies funded part of their dividend payments from retained earnings, with total distributions exceeding reported profits. Williamson Tea Kenya recorded a net profit of Kes120.7 million but distributed Kes 525.3 million (US$4.1M) in dividends, while Kapchorua Tea reported Kes 196.9 million (US$1.52M) in net profit against total dividend payments of Kes 469.4 million.
George Williamson also benefited from capital gains following the bonus share issues. The market value of its Kapchorua stake increased to approximately Kes 1.27 billion, while its investment in Williamson Tea Kenya rose to about Kes 2.98 billion, strengthening the company’s overall returns from its Kenyan tea investments.
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