Ousted KTDA bosses sue Munya, Matiang'i for contempt of court

The ousted directors of the Kenya Tea Development Agency (KTDA) want Cabinet Secretaries Peter Munya (Agriculture) and Fred Matiang'i (Interior) fined and jailed for disobeying a court order that halted their removal from office.

The former office holders have filed a contempt of court application seeking to have the two CSs, together with the Attorney-General and the new KTDA management team, punished following the elections between March and May , which led to the ouster of the top executive at the agency.

The alleged contemnors are accused of violating a court order issued by Justice Anthony Mrima on March 24, suspending an Executive Order issued by President Uhuru Kenyatta on March 12, that directed the Tea Board of Kenya to conduct elections in all tea-factories within 60 days.

The two Cabinet secretaries are said to have aided the new management team in taking over the control of KTDA and its factories.

Legally in office

Through lawyers Benson Milimo and Ochieng Oduor, the former directors told Justice James Makau that they are still legally in office since the incoming team was elected contrary to a court order.

They said the order dated March 24, which halted the leadership changes in the giant tea Corporation, is still in force.

Hence, the court heard, election and assumption of office by the new team led by chairman David Ichoho Muni is null and void. This means KTDA has two sets of directors.

The lawyers told the court that armed police have barricaded KTDA offices and that some staff have been locked out.

"KTDA has been paralysed and there is sheer anarchy. With disobedience of the court orders, anarchy will prevail. A court order is not a mere piece of paper. The situation is dire and it requires intervention of the court," said the lawyers.

The court further heard that Registrar of Companies has already effected the changes in management of the KTDA.

Lawyer Oduor said the changes in leadership of the KTDA should be nullified and that the contempt application is to safeguard integrity and authority of the court.

AG responds

However, the Attorney-General, through State Counsel Nguyo Wachira, said the former office holders want to use the court process to stop investigations and continue perpetuating plunder and theft at the corporation.

Mr Wachira asked the court to give him time to adduce evidence of theft, embezzlement of funds and aspects of the management team misleading the board for purposes of plunder.

He submitted that the outgoing team of directors was voted out lawfully and according to procedure, and that the new set of directors has since taken over and started making decisions.

"Centrality of tea in Kenya cannot be over-emphasised. It is the largest commodity of foreign trade and five million households depend on it. So, good governance is key for all parties and stakeholders. The petitioners came to court after investigations were commenced. Despite being voted out, they have decided to entrench themselves," said the State litigation counsel.

The counsel further denied that there was police raids at the corporation's offices. He explained that in the course of the new directors taking over, they requested for police security.

"Nothing has been paralysed. It is purely a change of management. A person has been sent on compulsory leave and is seeking to entrench his position," said Mr Wachira.

The President’s orders

Justice Makau directed that the case file be forwarded to Justice Mrima, who had granted the interim order suspending parts of President Kenyatta's Executive Order. Judge Mrima is also handling other disputes related to the tea reforms.

He directed the ousted team to furnish the alleged contemnors with the contempt application. The case will be mentioned on June 30 to confirm compliance and for further directions.

Besides ordering the election of new directors of the tea factories, the President also ordered for an inquiry into the alleged statutory and regulatory compliance breaches allegedly committed by KTDA and its directors.

Other reforms ordered by the President in the Executive Order no 3 of 2021 was giving of each of the KTDA subsidiaries a separate governance structure.

The President further  ordered that the profits from each of the subsidiaries is reflected in farmers' incomes.

The inquiry was to look into KTDA's activities and those of its subsidiaries, including KTDA Management Services, Chai Trading Company, Kenya Tea Packers (Ketepa), Majani Insurance Brokers, Greenland Fedha, The Tea Machinery and Engineering Company, KTDA Power Company and the Dubai Based KTDA DMCC.

He had directed the Cabinet Secretary for Interior and Agriculture to ensure the "full implementation" of the Executive Order.

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