High Court allows KTDA to hold directors' elections

The High Court has allowed the Kenya Tea Development Agency (KTDA) to go ahead and hold elections for factory directors scheduled for next month, dismissing a petition by the government.

Justice Anthony Mrima Thursday said although Agriculture, Fisheries and Food Authority (AFFA) had established a prima facie case, the authority failed to demonstrate that it was likely to be prejudiced if the elections are not stopped.

KTDA had opposed the case arguing that the elections involve some 600,000 shareholders of the 54 tea factories across the country and stopping them would adversely affect their entire operations.

“By placing the twin positions side by side and without determining the issues raised therein with finality, I am of the considered view that public interest militates against the second respondent (AFFA),” the Judge said. 

The agency and Agriculture CS Peter Munya had sought a temporary order to suspend the directors’ elections, which were to be conducted by KTDA (Management Services) Ltd, arguing that there was no legal framework to guide them.

Mr Anthony Muriithi, the acting director-general, said the regulations were suspended by the court and without them, the elections cannot be held using the old regulations until the orders are lifted.

Mr Muriithi said the new regulations published by the government overhauled the old regime and Regulation 10 provided for the election of the board of directors of the smallholder tea factories.

He urged the court to maintain the status quo, pending determination of various matters that have been filed.

He said the regulations were a product of the exercise of the delegated power by the President to the CS. He said all the issues pending before various courts all have a bearing on which legal regime will eventually govern the conduct of the elections.

But Benson Millimo, who represented KTDA, maintained that the agency is a private company and shareholders are small scale tea factory companies spread-out through the country. The corporate shareholders, he said, are respectively incorporated as private limited liability companies.