Sasini to pay interim dividend after land sale

Tea and coffee producer Sasini Ltd will pay an interim dividend of 1.00 shilling per share next month after it sold some of its land, the company said on Wednesday.

Sasini – which did not pay an interim dividend for its first half to end-March after posting a loss – said in a statement that it sold one tea estate and a portion of a second one during the period, earning the company just over Sh1 billion.

“Successful disposal of these assets in the second half yielded considerable contribution to the bottom line,” it said.

The interim dividend payout will consist Sh288 million of that cash, while the rest of the funds will be invested in areas the management feels will be more productive, Sasini said without offering details.

Tea growers were hurt by a drought in Kenya at the start of the year that curbed supplies but the low output is turning to a boon in recent weeks with a jump in prices of the crop.

Sasini’s shares are up 16.7 per cent this year to trade at Sh15 each. (REUTERS)