CS Peter Munya cuts off KTDA, takes charge of tea factories polls

Hon. Peter Gatirau Munya Cabinet Secretary, Ministry of Agriculture, Livestock, Fisheries and Cooperative says that the tea sub-sector problems are partly attributable to the performance of KTDA which is negatively affecting both the tea sub-sector. [Wilberforce Okwiri, Standard]

The Ministry of Agriculture has sidestepped the Kenya Tea Development Agency (KTDA) and taken charge of the election of directors of tea factories.

The factories will start electing their directors from today, according to a schedule issued by the ministry yesterday, in a process that has been staggered to May 22.

The polls will be held at extraordinary general meetings, which the ministry said are being convened after farmers issued notices.

Farmers, the ministry said, had also requested the government for support including provision of security at the election centres.

Agriculture Cabinet Secretary Peter Munya yesterday said the ministry is implementing the directives issued by President Uhuru Kenyatta a week ago, which required the Tea Board of Kenya to help the factories hold elections.

“Key among the directives is that the newly-established Tea Board of Kenya should jointly with other stakeholders and in compliance with all applicable procedural requirements sanction immediate elections in all tea factories so as to enable farmers to freely elect their board members within 60 days from the date of the executive order, with the objective of securing transparently managed tea sub-sector,” said Munya.

However, the law firm representing KTDA-managed factories yesterday contested both the ministry’s move to hold the elections and Uhuru’s directive.

The lawyers said the High Court in Mombasa had granted an order to stop the elections after East African Tea Trade Association filed a petition.

“The order directing tea factory companies to immediately conduct elections and that the government is going to preside over the elections is not valid,” said lawyer Benson Milimo, of Millimo Advocates.

He added that Uhuru’s directive, contained in Executive Order No 3 of 2021, breaches the rule of law and particularly the Companies Act.

In addition to the elections, President Kenyatta also directed the Attorney General to conduct an inquiry into allegations of statutory and regulatory breaches committed by KTDA, which are said to have led to the industry’s decline and erosion of farmers’ earnings.

Munya yesterday said the ministry had received petitions from farmers indicating that they needed to hold elections.

The factories, owned by the farmers, are required to hold annual general meetings (AGM) every year.

In case there are delays due to unforeseen circumstances, an AGM should be held at most 15 months after the last one.

Munya said according to the petitions, more than 15 months had elapsed from the last time the factories held AGMs and no new directors had been elected to replace those who had retired through rotation.

This had left the boards without quorum to conduct business.

“Tea farmers from several tea factories have therefore issued requisite notices for extraordinary general meetings under the provisions of their respective Memorandum and Articles of Associations to discuss governance matters, the current status of their factory boards and election of directors,” he said.

In what appears to be a warning that the elections would take place, the CS told the tea farmers to notify security agencies of the time and venues of the meetings to enable the government provide the “necessary support” for the meetings.

The time table for the tea factories has been suggested and given according to regions by the government for purposes of adhering to Covid-19 rules and also provision of security and bringing order, Munya said.

“I want to however clarify that these meetings are being held in accordance with the factories’ Articles of Association of one grower, one vote,” Munya said.

The CS also clarified that since the zoning and reduction of directors that were suggested in the Tea Act has been stayed by the courts, the election should follow the initial six-zone electoral boundaries that were being used before the Act came into effect.

“We don’t want to breach any court order that was given in relation to reduction of the directors.

“We want them to maintain the ones they had before the Tea Act came to effect to comply with the court order,” he said.  

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