By Kimuri Mwangi
Agriculture PS Dr Paul Rono has been accused of meddling in the management of smallholder tea factories. In a statement by KTDA Holdings Board and Chairpersons of 54 KTDA Managed Factories the PS was also accused of misleading the former agriculture CS Dr Andrew Karanja.
The statement read on their behalf by KTDA Board Vice Chairman Eric Chepkwony listed five instances where the PS is accused of interference. These are;
- Removal of reserve price by the Ministry of Agriculture without consultation with KTDA directors leading to plummeting of tea prices at the Mombasa Tea Auction
- Making pronouncements by Agriculture PS on separation of satellite factories from mother factories without considering the property interests of farmers.
- Calling impromptu meetings with factory directors by government agencies of which the cost is borne by farmers
- Direct interference on board disputes at Michimikuru Tea Factory Company and purported suspension of directors by Agriculture PS.
- Interfering with the judicial process by making pronouncements on Michimikuru directorship contrary to court ruling
On the Michimikuru Tea Factory, KTDA says that “On June 29, 2024, the factory shareholders held a transparent and democratic election, resulting in the appointment of a duly elected board of directors. However, in the ensuing months, a section of shareholders expressed dissatisfaction with the election outcome, leading to the purported requisition of a special general meeting which resulted in the election of the purported board. This request came after the Annual General Meeting slated for 6th December, 2024 was disrupted and was unable to proceed. The Registrar of Companies has since granted an extension for 90 days. We urge the Registrar to respect the court order. Prior to the botched AGM the PS for Agriculture accompanied by the local MP without notifying the factory board visited Michimikuru and made a declaration that the board stands suspended. This was contrary to the clear provision of the Companies Act. The factory board prior to that announcement was not given an opportunity to be heard, contrary to the rules of natural justice. It is worthy to note that officers of National Police Service aided the convening of an illegal meeting, and the same officers could not contain violence organized by the conveners of illegal meetings in the Annual General Meeting in December 2024. As an organization committed to the rule of law, we sought the intervention of the court. The court issued an injunction staying the implementation of any resolution passed in the subject meeting which was scheduled for the 10th January, 2025. All the matters of the legality of the said meeting and its resolutions are pending in court and we are not at liberty to discuss them at this point.”
KTDA added that whenever there is negative publicity in the media, there is a direct impact on absorption of tea by international buyers saying that several tea factories have experienced low absorption of teas in the market due to wrangles and political interference.
They also said that they will head to court to resolve the issues while at the same time calling on President William Ruto to give them an appointment to look for a solution.
GG Kagombe who is Board Member and the Member of Parliament for Gatundu South, accused the PS of playing politics and called for his removal.
“I want to put on notice P.S. Rono. He went to Chelal, started a fight about separation of factories without the concurrence of the board, the farmers, or the board of holdings. He left that place; he started making politics with the tea subsidy that was offered to farmers by the government. He misadvised the former Cabinet Secretary on the removal of price floors that have kept the gains that we have seen over the last three years. Unilaterally, the C.S. came and announced to the media and to the public that he has removed the price floors. In effect, what that has done is that our prices have plummeted in the market,” said Kagombe. He avoided attacking the President laying the blame on other government officials including the Tea Board of Kenya. “We are glad the President saw it fit to show the door the C.S. who did that. We thank you and congratulate you, Mr. President. We are asking that if this P.S. Rono follows these routes, please show him the door. I have seen you advertise for the position of Principal Secretaries, let him be the first one to step out.”
Saying that KTDA is a private organization, Kagombe said the government has no mandate interfering in their affairs. “And by the way, we are not pleading. We are giving strict instructions and directions that this industry is no different from all other industries. All other people who practice private business must be allowed to work and operate within the established laws without any interference from anybody. Government shall not impede business, and government shall not impede and deny farmers what is really their right to own property and to conduct business in this country without interference. The work of appointing brokers is purely the mandate of tea factory boards. It is purely within the law. And where it has been delegated to management services by a management agreement that is mutually agreed upon by the board of management services and the board of the individual tea factories, that management agreement must, and I say must, be followed,” he opined.
