KTDA Warns Against Political Interference in Tea Sector Operations
The Kenya Tea Development Agency (KTDA) has raised alarm over increasing political interference in its operations, warning that such actions threaten the stability and productivity of the country’s tea industry.
According to KTDA statement read by its holding board and 54 factory company representatives, the KTDA highlighted concerns about external meddling that could derail reforms and compromise the welfare of small-scale tea farmers.
Speaking during a press conference in Nairobi, the KTDA Holdings Vice Chairperson Eric Chepkwony has urge all stakeholders to let the agency operate independently, in accordance with the law, to safeguard the interests of farmers
“Political interference undermines the progress we have made in stabilizing tea prices, improving farmers’ earnings and ensuring accountability across the sector,” he said, after noting that smallholder tea factories has experienced a lot of interference from some government officers and politicians.
KTBS highlighted several instances where government officials and politicians disrupted factory affairs, impacting both the company’s operations and farmers’ livelihoods Key allegations including;
Unilateral Market Actions: A surprise intervention by the Minister of Agriculture reportedly led to a sharp decline in tea prices at the Momba Tea Auction. This move was made without consulting Kenya Tea Development Agency (KTDA) directors.
Satellite Factory Separations: Pronouncements by agriculture officials regarding the separation of satellite factories from main factories were allegedly made without considering farmers’ property rights.
Forced Meetings and Costs: Factory directors were summoned to government-initiated meetings, with farmers bearing the associated costs.
Interference in Disputes: At Mijumiguru Tea Factory, agriculture officials purportedly suspended directors and intervened in disputes without following due process.
Judicial Process Violation: Statements and actions allegedly aimed at influencing the judicial process concerning Mijumiguru’s directorship elections have raised concerns about undermining transparency and democracy.
According to the statement, the Election Controversy at KTDA follows a democratic election of a new board at Mijumiguru Tea Factory, dissatisfaction among some stakeholders led to a call for a special general meeting.
This meeting attempted to reverse decisions from the annual general meeting originally scheduled for December 2024, which was postponed due to interference.
The Registrar of Companies granted a 90-day extension to respect a court order, but subsequent actions by the Principal Secretary (PS) for Agriculture and a local Member of Parliament declared the board suspended, a move, KTDA argues, contravenes the Companies Act and ignored the principles of natural justice by not allowing the board a chance to defend itself.
In the statement, he noted that Violence reportedly broke out at an illegally convened meeting, with the National Police Service allegedly failing to prevent the chaos.
“It is worthy to note that officers of National police service aided the convening of an illegal meeting and same officers could not contain violence by the conveners of illegal meetings in the Annual General Meeting in December 2024,” Said Chepwony.
KTDA sought court intervention, resulting in an injunction against resolutions passed during the contentious meeting scheduled for January 10, 2025.All the matters are of legality of the said meeting are pending in court.
KTDA emphasized its commitment to the rule of law and urged all stakeholders to allow the judicial process to run its course. “We are not at liberty to discuss the matter at this point,” the organization stated, reaffirming its dedication to justice and transparency in factory operations.
KTDA has raised concerns about the negative impact of political interference and policy changes on the international market’s confidence in Kenyan tea. Several factories have reported reduced market uptake due to these disruptions, adversely affecting farmers’ earnings.
The agency emphasized the need for stakeholders to avoid interfering with the operations of farmer-elected boards and called for dialogue to address any issues of concern.
In a statement read by the Vice Chair, KTDA assured stakeholders that the matter would be resolved through legal and corporate governance frameworks, reaffirming its commitment to transparency and accountability.
While the current board and management continue to serve the interests of shareholders, employees and the public, KTDA is seeking an audience with the Office of the President to discuss its concerns. Regular updates will be provided as the situation develops.
The agency cited recent attempts by unnamed individuals and groups to influence its governance structures, which it termed as a violation of its mandate as a private entity representing the interests of smallholder tea farmers.
