The Mountain Journal
Former tea directors claim the factories are indebted to a tune of Sh18 billion followed by unexplained expenses.
The former officials from Mt Kenya region alleged that the directors’ expenses had risen in many of the factories from between Sh8 million to Sh12 Million annually.
In a meeting at Golden Palm Hotel, Kenol,Murang’a led by Prof Johnson Kang’ethe and Francis Macharia resolved to get back control of the 69 tea factories.
They alleged that the planned annual general meetings at the factories set to start on November 23 at the Ngere tea factory ending at the Nyansiongo tea factory on December 14 has an agenda to do away with rotational elections.
They alleged that more than Sh65 million have been spent to facilitate the forensic audit ordered by the former agriculture CS Peter Munya at Sh800,000 per factory.
They hinted that they would be taking over the management of the tea processing facilities in a month’s time to enforce the court order.
In a press statement, they said the facilities generating billions of shillings have been run down, a move likely to have them taken over by the receiver managers over the huge loans.
“ One of the factories is indebted to a tune of Sh400 million that was borrowed to assist in payment of the first bonus,” said Kang’ethe.
He added that the farmers are awaiting the release of the final bonus payment to be able to facilitate taking their students to school in the new year.
Macharia regretted that the introduction of the reserve price of tea in the auction market has led to the slow-moving of the commodity from the warehouses.
“ The reserve price stopped the direct market channel that earned the sector billions of shillings. Presently the factories are seeking loans to pay for the delivered green leaf per month,” said Macharia.
They demanded the immediate reinstatement of KTDA employees who were sacked by the new management.
KTDA Chairman David Ichoho when reached for comments said the tea sector was stable as he rubbished the statement by the former directors.
“ Don’t be bothered by them, they are only interested in causing distractions,” said Mr Ichoho.
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