WIN

KTDA to drop suit challenging tea reforms

The move to drop the petition is expected to receive backing from Agriculture CS Peter Munya

In Summary
  • The agency in a public notice on Monday said that KTDA factories at their upcoming AGMs will have shareholders vote to withdraw from the court cases.
  • A group of directors from 54 KTDA factories across the country last year moved to court seeking suspension of implementation of some clauses in the Tea Act.
Farmers pick tea leaves in Othaya in Nyeri County
Farmers pick tea leaves in Othaya in Nyeri County
Image: EUTYCAS MUCHIRI

The Kenya Tea Development Agency plans to drop suits challenging the implementation of various tea reforms.

The agency, in a public notice on Monday, said its factories will at their upcoming Annual General Meetings have shareholders vote on a special resolution to withdraw the cases.

Fifty five tea factories under KTDA's management are expected to hold their Annual General Meetings between November 16 and 30.

A group of directors from 54 KTDA factories across the country last year sought the courts intervention to suspend the implementation of some clauses in the Tea Act 2020.

They claimed that some had far-reaching consequences to the business and operations not only of the factories but the whole tea industry.

The suits also include a petition whereby KTDA had sued top tea officials including the Cabinet Secretary for Agriculture Peter Munya.

The proposed resolutions come as a new management team that is allied to sector reforms takes charge of KTDA operations.

The agency's board recently announced the appointment of Wilson Muthaura as the group CEO.

The move to drop the petitions is expected to receive backing from Munya who has been calling for the withdrawal of the petitions to pave way for the full implementation of the reforms.

In a recent tour of Rukuriri and Mungania tea factories in Embu county, Munya assured the farmers that the reforms would ensure they benefit from their produce.

For instance one of the reforms is a $2 minimum reserve price for tea sold at the Mombasa auction. This has seen tea prices greatly improve, heralding better incomes for farmers.