Kenya: Peter Kanyago Replaced As Ktda Gets New Directors

After a lengthy fight, a change of guard is now expected at the Kenya Tea Development Agency (KTDA) with the election of new board members concluded.

The long-serving chairman, Peter Kanyago, has been replaced by David Mune Ichocho, while Dr Wesley Koech has taken over as vice chairman, replacing Philip Ngetich. The company secretary’s position has been taken by Patrick Ngunjiri, a lawyer who has been campaigning for tea reforms and acting for farmers, and has replaced Mr John Omanga.

While Mr Kanyago and Mr Ngetich have been at the helm of the tea body for over two decades, it is not clear whether they will go without a fight – after the State supported changes to rid the tea sector of cartels and collusion between buyers and brokers.

Reforms at the tea sector have been hit by intrigues and court cases – as the previous board kept reformists and the Ministry of Agriculture busy at the courts where it has filed various cases.

Withdraw cases

The new KTDA directors had vowed to withdraw all the cases – which have cost the tea farmers millions of shillings in legal costs.

“This is the task ahead of us. We have to clean up the house,” said Mr Ngunjiri, the incoming company secretary.

In the cases, the tea factories, which are independent companies, had been enjoined as litigants by their agents, in a circus that exposed the collusion between the KTDA headquarters and the factory directors in stopping the reforms.

While President Kenyatta signed the Tea Act, 2020 into law, Justice Anthony Mrima, a High Court judge, suspended some provisions of the law, pending full hearing, after Kenya Tea Growers Association(KTGA) argued that Sections 36, 48, and 53 of the Tea Act, were unconstitutional.

The companies that filed the case include James Finlay, Kapchorua Tea Plc Ltd, Kipkebe Ltd, Nandi Tea Estates, Williamson Tea Plc and Sotik Highlands Tea estates Ltd.

Brokerage commission

Also, the East African Tea Trade Association challenged section 34(4) of the Act which deals with the brokerage commission that farmers are supposed to pay arguing that it was silent on the percentage of payments to be borne by the tea buyers and tea factories.

The law, which came into effect on January 11, 2021, had outlawed sales of tea outside the auction floor after farmers complained that the direct sales were being used by brokers and cartels to swindle farmers.