KTDA has accused the government, specifically Agriculture PS Dr. Paul Rono, of interfering in the management of smallholder tea factories. In a statement issued by the KTDA Holdings Board and the chairpersons of 54 KTDA-managed factories, the PS was criticized for his actions, which allegedly misled former Agriculture CS Dr. Andrew Karanja. KTDA outlined five instances of interference by the PS, including the removal of the reserve price for tea, unilaterally deciding on the separation of satellite factories from their mother factories, convening impromptu meetings at the expense of farmers, interfering in board disputes at Michimikuru Tea Factory, and making statements that contradicted court rulings on the factory’s directorship.
One key issue raised by KTDA was the interference in the operations of Michimikuru Tea Factory. KTDA stated that on June 29, 2024, a democratic election had been held, resulting in the appointment of a duly elected board of directors. However, some shareholders were dissatisfied with the outcome, leading to a request for a special general meeting. This meeting was disrupted, and the Registrar of Companies granted an extension for 90 days. KTDA emphasized that the PS, accompanied by a local MP, visited Michimikuru without notifying the factory board and declared the board suspended, which KTDA argued violated the Companies Act. The announcement was made without giving the board an opportunity to defend itself, breaching natural justice principles. KTDA also highlighted that police officers assisted in convening an illegal meeting and failed to control violence during the disrupted AGM in December 2024. KTDA has since sought court intervention, which issued an injunction to stay the implementation of any resolutions passed during the illegal meeting.
KTDA also expressed concerns about the negative impact of political interference on the tea industry. They pointed out that media reports about these issues often lead to reduced tea absorption by international buyers, resulting in low market demand for tea from some factories. KTDA emphasized the need for these matters to be resolved in court and called for a meeting with President William Ruto to discuss a solution.
GG Kagombe, a KTDA Board member and MP for Gatundu South, accused PS Rono of politicizing the tea industry. Kagombe criticized the PS for instigating disputes over the separation of factories without consulting the board, farmers, or KTDA Holdings. He also condemned the PS for misadvising the former Cabinet Secretary on the removal of price floors, which led to a decline in tea prices at the Mombasa Tea Auction. Kagombe refrained from criticizing the President but suggested that if PS Rono continued with his actions, he should be removed from office.
Kagombe further asserted that KTDA is a private organization and that the government should not interfere in its affairs. He emphasized that, like any other private business, the tea industry should be allowed to operate within established laws without government interference. He stressed that the appointment of brokers and management services for tea factories is the sole responsibility of the factory boards and should be done according to mutually agreed management agreements. He called for the government to respect the rights of farmers to own property and conduct business without undue interference.
In conclusion, KTDA has called for an end to government interference in the tea sector and seeks a resolution through legal means and dialogue with the President. They maintain that the tea industry should be allowed to function independently, in line with the laws governing private businesses in the country.
