By: Sefu Sabila
Worth Noting:
- “The board of directors of KTDA Holdings, its subsidiaries and its managed tea factories shall uphold the rule of law and engage in the mediation as directed by the court. In this regard, the directorship/ leadership of KTDA Holdings, its subsidiaries and managed tea factories remain unchanged as per the respective current CRs 12 official documents that list the company directors.” Read part of the statement.
- “We urge our stakeholders and members of the public to remain vigilant and disregard any communication from the former boards and former company secretary as we await the final determination on these matters.” Further read the statement.
A three -judge bench of the High Court delivered it’s ruling on the legal representation of Kenya Tea Development Agency (KTDA) – holdings and KTDA managed tea factories in petitions before the court on Friday 3rd November.
In the ruling, the court narrowed to the issue of advocate on records and did not delve into the question of directorship. However, the court left the issue of directorship and other subsequent cases to be litigated and addressed in the appropriate forums. The court further guided that the involved parties to proceed to mediation and provide a report on the same within 60 days.
In a statement by KTDA Holdings, the agency urges its members to dissociate from any information of the former leadership of the company directors and secretary. According to the statement, the current leadership remains unchanged as per the official Company document in CR 12s.
“The board of directors of KTDA Holdings, its subsidiaries and its managed tea factories shall uphold the rule of law and engage in the mediation as directed by the court. In this regard, the directorship/ leadership of KTDA Holdings, its subsidiaries and managed tea factories remain unchanged as per the respective current CRs 12 official documents that list the company directors.” Read part of the statement.
“We urge our stakeholders and members of the public to remain vigilant and disregard any communication from the former boards and former company secretary as we await the final determination on these matters.” Further read the statement.
Since assuming office in July 2021, the KTDA Board has adopted a farmer-centric approach and has achieved a number of notable milestones benefits of farmers. The board introduced changes in the payment cycle where farmers are guaranteed payment by the 5th working day of the month for the previous month’s leaf deliveries, as opposed to the third week of the month.
Through collaboration with the government, the board is working to ensure farmers benefit from various government schemes such as the fertilizer subsidies. Further through the board microfinance institution Greenland Fedha- GFL, the board has reduced interests charged to boost affordable credit access and reduce the burden of the loans for tea farmers.
“To our esteemed farmers, we value your partnership and shall engage continuously and collaborative to ensure that your interests prevail. We will continue to ensure farmers get optimal returns for their tea business.” Read the statement.
The tea sector has in the past experienced a push and pulls between the ministry of agriculture and the agency on retrieving the tea sector. The tea business suffered the change of key markets and lower prices during the COVID-19 pandemic in 2020-2021.
However, in September Deputy President Rigathi Gachagua during a meeting with KTDA directors and stakeholders announced an increase in tea bonuses for farmers from Kshs 93 billion to Kshs 95.2 billion for farmers. This is a follow up amount to strengthen the tea sector as promised by the government, in January this year, tea farmers affiliated to KTDA received an initial amount of Kshs 5.5 billion.
During the Tea Conference in Kericho in July, the DP had promised to implement the tea act reforms to revive the tea sector, which had been according to the DP Gachagua frustrated by the previous governments.
“We are proud that within six months of the reforms, we are restoring sanity and stabilising the tea subsector as envisioned under the Kenya Kwanza plan of putting more money in the pocket of the farmer,”. This is a direct positive impact to the farmer, who is at the bottom of the socio-economic pyramid. We are dignifying the farmer.” DP Gachagua said.
