The Ministry of Agriculture had ordered directors of the Kenya Tea Development Agency (KTDA) who sit on the board of companies associated with the agency to quit immediately.
Agriculture Principal Secretary Kiprono Ronoh, in a letter dated November 28, claimed KTDA directors have been irregularly serving in the agency and other firms, including its subsidiaries, thereby causing a conflict of interest.
The letter is copied to Agriculture CS Mutahi Kagwe, Tea Board of Kenya chairman Ngung'u Gathinji and the CEO Willy Mutai, as well as the KTDA CEO Wilson Muthaura.
According to the PS, section 34(9) of the Tea Act, 2020 provides that a director of a tea factory shall not serve as a director in another company having a direct or indirect commercial relationship with the tea factory in which he or she serves.
Section 34(10) further requires that where the circumstances under subsection (9) arise, such a director shall forthwith relinquish his or her position to avoid conflict of interest and ensure good governance within the tea value chain.
Ronoh said that a compliance review of the directorship of smallholder tea factories managed by Kenya Tea Development (MS) Ltd has revealed that several tea factory directors are also serving as directors in other companies having a direct or indirect commercial relationship with the tea factory, contrary to Section 34(9) & (10) of the Tea Act, 2020.
“Pursuant to Section 34(10), all affected directors are hereby directed to immediately relinquish their positions in the respective tea factories and submit a copy of an amended CR12 to my office within Thirty (30) days from the date of this letter,” Ronoh directed.
“You are further required to align your internal constitution documents, including your Articles of Association, with the Tea Act, 2020 and other relevant laws.”
“By copy of this letter, the Tea Board of Kenya (TBK) is hereby required to make necessary follow-up to ensure compliance with this directive. Your cooperation in ensuring full and prompt compliance with the provisions of the Tea Act is appreciated,” the letter reads.
The directive comes at a time when the National Assembly Departmental Committee on Agriculture is conducting a probe into the activities of KTDA following a low payment of bonus to farmers.
“The Ministry has just gone ahead of us; since we were to make a similar recommendation after we noted the irregularity,’’ Borabu MP Patrick Osero, who is a member of the committee, said.
Osero opined that KTDA management can not oversight its subsidiaries since the same board members who are supposed to do the work sit in those firms.
