•The farmers met during an annual general meeting but failed to approve the factory’s accounts.
•Moses Waweru, a farmer, said it was the first time in years the factory was holding a calm AGM without the presence of police officers.
Image: Alice Waithera
Kiru tea factory farmers in Murang'a want a forensic audit conducted on their financial statements for the last four years.
The farmers met during an annual general meeting but failed to approve the factory’s accounts.
They said they did not have faith in the former board ousted in March.
Moses Waweru, a farmer, said it was the first time in years the factory was holding a calm AGM without police officers.
The factory has been experiencing leadership wrangles pitting the current chairman Chege Kirundi and the ousted chairman Stephen Gichaiga following the formation of factions in its board.
The wrangles started in 2017 when Kirundi suspended Githiga from his position as a director following his appointment as Sasini company’s chief executive.
Kirundi said the two positions presented a conflict of interests.
He replaced KTDA's then company secretary John Kennedy Omanga with Bernard Kiragu after he complained that the board had not followed the right procedure in suspending Githiga.
This led to the splitting of the factory board with one faction electing Githiga as its chairperson.
The two factions dragged each other to court as Githiga who had KTDA's support took over the factory’s management until early this year when elections were held in all factories and Kirundi was re-instated as the chairperson.
Waweru said farmers had been fatigued by the wrangles and wanted their factory ran without politics that he said adversely affects farmers.
He said they were discontented with the running of the factory since the wrangles started and wanted the financial statements verified.
“We are happy that the government has put measures in place to enable transparency that will restore farmers’ confidence,” he said.
Waweru lauded the move by the government to ensure farmers receive their payment early.
He commended KTDA’s board decision to lower interest rates for loans issued by Green Fedha, an affiliate company of KTDA, from 21 per cent to eight per cent.
Waweru said the change effected early this month has saved farmers from exploitative loans by financial institutions.
Image: Alice Waithera
Kirundi said the reforms being undertaken will empower farmers as opposed to the former system where their interests were secondary.
“This is a paradigm shift from what was happening before when KTDA put itself ahead of the grower. This shift will be encouraged moving forward by the factories and the KTDA board,” he said.
“We are happy that unlike before where all KTDA factories had one company secretary, now each has its own.”
Kirundi said prompt payment has lessened the level of borrowing by farmers and helps them to manage their payments better.
He said before he was illegally ousted as the chairperson, he had called for an audit of the factory’s operations.
On December 6, KTDA board dispatched a team of auditors to all factories.
Kirundi said the forensic audit which will be concluded in two months will reveal malpractice incidences and help inform the factories’ new managements.
He said the cooperation of farmers and the factory’s management will gain.
The wrangles that rocked the factory resulted in a reduced output as the rate of conversion of green leaf to made-tea deteriorated.
The factory was poorly maintained and the new board has been tasked with upgrading some components.
“All the vehicles were over eight years old and poorly maintained but we have procured four new trucks to ease tea collection. The former directors might not have been interested in maintaining the factory,” Kirundi said.
Edited by Kiilu Damaris