State accused of interfering with management of tea firms

The Kenya Tea Development Agency (KTDA) Holdings board and its 54 affiliated factory companies have faulted the government, politicians and other officials for interfering with the management of smallholder tea factories.

In a joint press briefing in Nairobi, yesterday, KTDA Holdings and factory directors said the Ministry of Agriculture removed reserve tea prices without consulting them, leading to plummeting prices at the Mombasa Tea Auction.

The board also put Agriculture Principal Secretary Kiprono Ronoh on notice for making pronouncements on the separation of satellite factories from mother factories without considering the interest of farmers.

The board called out government agencies for calling impromptu meetings with factory directors, costing farmers their earnings.

KTDA vice-chair Eric Chepkwony criticised Ronoh for directly interfering with board disputes at the Michimikuru tea factory and the purported suspension of directors.

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Efforts to reach the PS were futile as he did not pick up our calls. He did not also reply to our text messages. “They have interfered with the judicial process by making pronouncements on Michimikuru directorship contrary to the court ruling,” KTDA vice chair said.

Mr Chepkwony noted that despite the election of factory shareholders at the Michimikuru Tea factory, a section of shareholders expressed dissatisfaction with the outcome, leading to the purported requisition of a special general meeting.

The KTDA board and factory directors pointed fingers at the PS for visiting the factory and making a declaration to suspend the board.

“Prior to the announcement to the factory board, we were not given an opportunity to be heard contrary to the rules of natural Justice,” the vice chair said.

“Officers of the National Police Service aided the convening of an illegal meeting and failed to contain violence organised by the conveners of illegal meeting in 2024 AGM,” Chepwony said. The court has since issued an injunction on the issue. According to KTDA, the negative publicity and pronouncements by the PS have affected tea absorption by international buyers. “Several tea factories have experienced low absorption of teas in the market due to wrangles and political interference,” noted Chepwony.

He decried that this has hurt farmers’ earnings. He also accused the government of interference - confusing the public and stakeholders in the tea factory.

According to Gatundu South MP Kagombe Gathuka, who is the director for Zone One, some select individuals in government are committed to ensuring that smallholder tea farmers do not enjoy their sweat.

“We want to put on notice to PS Ronoh that he went to Chelal and started a fight about the separation of factories without the concurrence of the board, the farmers or the board of holdings,” he alleged. He accused the PS of playing politics with the tea subsidy that was offered to farmers by the government.

Kagombe also accused PS Ronoh of misadvising former Agriculture Cabinet Secretary Andrew Karanja on the removal of the price floor, plummeting the tea prices in the market.

He cautioned politicians against making laws for KTDA as opposed to the tea sector.

“We are just a sub-sector; we shall be governed by laws governing the entire sector. KTDA is purely governed by the Companies Act of 2015”.

He also raised the alarm over the involvement of DCI in procurement issues of tea.

KTDA held elections for directors of 54 factories in June 2024 following a court directive issued on April 11, after wrangles between then-serving and former directors delayed the polls by about a year.

Executive order

The former directors claimed they were unfairly ousted in 2021 following an executive order by President Uhuru Kenyatta that allowed farmers to vote using the one-man-one-vote system provided for by the Tea Act, 2020.

The directors then headed to court to challenge their ouster. KTDA has also had disagreements with farmers over the management of the tea factories.

In October 2022, 31 tea factories from the Mt Kenya region called for a review of their agreements with KTDA Management Services, terming the existing ones oppressive.

They wanted all tea sales proceeds to be remitted directly to the factories as opposed to the KTDA Management Services so directors could have access to the accounts.

Under the proposed agreement, proceeds from any other made tea, except for produce sold through the auction, would be remitted to the tea factory’s accounts within 30 days from the date of sale.