George Williamson Earns Sh582.6 Million From Kenyan Tea Units as Dividends and Royalties Surge

British multinational George Williamson & Co received Sh582.6 million in dividends, royalties and licence fees from its Kenyan tea subsidiaries in the year ended March 2026, marking a sharp 76 percent increase from the Sh330.94 million it earned in the previous financial year.

The higher earnings were driven by increased dividend payouts from both Nairobi Securities Exchange-listed Williamson Tea Kenya and Kapchorua Tea, reflecting generous shareholder rewards despite both firms distributing more cash than they generated in annual profits.

Latest annual reports show Williamson Tea Kenya significantly raised its dividend payment to shareholders, while Kapchorua Tea also increased its payout, boosting returns to the British parent company, which remains the largest shareholder in both firms.

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The stronger inflows also come after both companies implemented bonus share issues in 2025, effectively doubling George Williamson’s shareholding and increasing its entitlement to future dividend distributions.

While royalty income from Williamson Tea also rose during the period, Kapchorua recorded a decline in licence and royalty payments, although this was more than offset by a substantial increase in dividends.

Dividend Windfall Drives Higher Returns

Williamson Tea Kenya paid Sh270.37 million in dividends to George Williamson during the review period after declaring a dividend of Sh15 per share. This represented a sharp increase from the Sh90.12 million distributed to the British multinational in the previous financial year when shareholders received Sh10 per share.

The company also increased royalty and licence fee payments to its parent company to Sh135.25 million, up from Sh106.32 million a year earlier. Royalties are typically paid by subsidiaries to parent firms for the use of intellectual property, including trademarks, patents, trade names and proprietary business systems, although the companies did not disclose the specific intellectual property covered by the payments.

Kapchorua Tea, meanwhile, paid Sh112.47 million in dividends to George Williamson, more than doubling the Sh46.83 million distributed in the previous year after raising its dividend to Sh30 per share from Sh25 previously.

However, royalty and licence payments from Kapchorua declined to Sh64.51 million from Sh87.67 million recorded a year earlier. Despite the lower royalty income, the larger dividend payout ensured the British multinational significantly increased its overall earnings from the company.

The combined dividend and royalty payments from the two tea firms pushed George Williamson’s total receipts to Sh582.6 million, highlighting the importance of its Kenyan operations to the group’s investment portfolio.

Bonus Shares Increase Parent Company’s Holdings

George Williamson strengthened its position in both companies following bonus share issues undertaken during 2025.

The multinational owns a 51.46 percent stake in Williamson Tea Kenya through Ngong Tea Holdings Limited. The company’s one-for-one bonus issue doubled Ngong Tea Holdings’ stake from 9.01 million shares to 18.02 million shares after the books closed in October 2025.

The increase in the number of shares, combined with the higher dividend per share declared during the review period, effectively tripled the total cash distribution received by George Williamson from Williamson Tea between 2025 and 2026.

Kapchorua Tea also issued shareholders with one bonus share for every share held. As a result, George Williamson’s direct stake increased from 1.87 million shares to 3.75 million shares while maintaining its ownership percentage of 23.96 percent.

Williamson Tea remains a significant investor in Kapchorua, holding a 39.56 percent stake equivalent to 6.19 million shares, making the tea producer an associate company within the wider group structure.

The enlarged shareholding positions have significantly strengthened George Williamson’s future earning potential, allowing the company to benefit from larger dividend distributions whenever the Kenyan firms reward shareholders.

Despite the generous shareholder payouts, both companies relied on retained earnings to finance their dividends after distributing more cash than they generated in profits during the financial year.

Williamson Tea returned to profitability with a net profit of Sh120.7 million for the year ended March 2026, reversing the previous year’s net loss of Sh166.4 million. However, the company declared total dividend payments of Sh525.3 million, substantially exceeding its annual earnings.

Kapchorua Tea also reported improved financial performance, posting a net profit of Sh196.9 million compared with Sh181.1 million the previous year. Even so, its total dividend payout reached Sh469.4 million, well above the profits earned during the period.

The use of retained earnings enabled both firms to maintain attractive shareholder returns despite earnings remaining below dividend distributions.

Capital Gains Boost Overall Investment Value

Beyond dividends and royalties, George Williamson also benefited from a substantial increase in the value of its investments following the bonus share issues and subsequent movements in the stock market.

When Kapchorua’s register closed for the bonus issue in October 2025, the company’s shares were trading at Sh394.25, valuing George Williamson’s stake at approximately Sh739 million.

Following the doubling of its shareholding through the bonus issue, the value of the British firm’s investment has risen to approximately Sh1.27 billion based on Friday’s closing share price of Sh339.75. Although the individual share price has declined, the increased number of shares has significantly lifted the overall value of the investment.

George Williamson has also recorded gains on its Williamson Tea investment. While the tea producer’s share price has dropped from Sh302 before the bonus issue to Sh165.50, the doubling of shares has increased the overall value of the British parent’s stake from Sh2.72 billion to approximately Sh2.98 billion.

The improved valuation, coupled with higher dividend receipts and royalty income, has strengthened George Williamson’s returns from its Kenyan operations over the past year.

The performance demonstrates the continued strategic importance of Williamson Tea Kenya and Kapchorua Tea within George Williamson’s global portfolio. Despite challenges facing the tea sector and dividend payouts exceeding annual profits, the companies have maintained strong shareholder returns while enhancing the long-term value of the British multinational’s investments in Kenya.