The longstanding dispute in Kapkoros Tea Factory (Plc) in Bomet County, that had threatened to derail the gains made by tea farmers in Bomet and Nakuru counties, has been amicably resolved during a consultative meeting convened by Agriculture Cabinet Secretary (CS), Mutahi Kagwe, at Kilimo House, Nairobi.
In attendance were the State Department for Agriculture Principal Secretary (PS) Dr. Kipronoh Ronoh, the Kenya Tea Development Agency (KTDA), the Tea Board of Kenya (TBK) CEO Willy Mutai, Bomet Senator Sen. Hilary Sigei, and the entire board of Directors of Kapkoros Tea Factory and its satellite factories of Tirgaga, Motigo and Olenguruone.
Over the last one week, farmers from Motigo and Olenguruone have boycotted plucking and delivering their green leaf in a concerted push for financial and operational independence from Kapkoros, the parent factory, leading to huge losses as thousands of kilos of tea went to waste. Kapkoros also manages Tirgaga.
Farmers from Motigo and Olenguruone had on December 15, 2023, voted for separation of their accounts and financial autonomy from Kapkoros. An Annual General Meeting on December 12, 2024, and a Board Meeting on January 9, 2025, had overwhelmingly reaffirmed these decisions.
After deliberations it was agreed that there is need to allow for the immediate financial and operational separation of Motigo and Olenguruone factories from Kapkoros Tea Factory Plc., as desired and voted for by farmers from the two factories and reaffirmed in subsequent Board decision and farmers AGM. Farmers from Motigo and Olenguruone will also immediately resume plucking and delivery of green leaf to their respective factories and that the coding and issuance of the smart cards to farmers in the two factories proceed as earlier planned.
Kapkoros Tea Factory Directors will also convene a Special General Meeting (SGM) of the shareholders, within the next 21 days to approve the above issues in a systematic and judicious manner as they agree on the modalities of separation, to take due cognizance of all the issues obtaining, and exercise fairness in the discharge of their responsibilities.
A decision was also made that the Construction of Kamogoso Tea factory shall be supported by the Kapkoros Group through such an arrangement as will be mutually agreed upon by the farmers, without any duress. Also, the modernization of the old factories will be undertaken by Kapkoros Group, with the assistance of the government.
Finally, all parties will cease hostilities against each other and stop engaging in any action that may interfere with normal operations or management of the 4 tea factories, and withdraw all active petitions, and court cases. The directors, in conjunction with their management agent, KTDA (MS) Ltd, shall take urgent measures to address the high cost of production in all the four factories, and also enhance the quality of teas while factories found to be perpetuating the hawking of greenleaf to be delicensed in accordance with the Tea Act, 2020
