An audit report has revealed that former officials of the Kenya Tea Development Agency (KTDA) are linked to the loss of over Ksh 600 million belonging to small-scale tea farmers. This loss was caused by financial mismanagement, suspicious borrowing, and questionable land purchases.
The report indicates that a cartel made up of former KTDA directors and board chairmen worked together to frustrate the new leadership and resist reforms meant to clean up the agency.
The audit, led by former Attorney General Paul Kihara, points fingers at key former officials including Kennedy Omanga, Lerionka Tiampati, and Peter Kanyago. These individuals, along with former board chairs Enos Njeru and David Ichoho, are said to have been at the center of the mess.
The group allegedly used their positions to secure large loans, some of which were backed by the agency’s fixed deposits, yet were never properly registered or accounted for as required by law.
One shocking discovery from the audit was that KTDA had outstanding loans of over Ksh 4.2 billion from banks like Citibank and Proparco, in addition to USD 1.2 billion in asset finance loans. These loans were allegedly signed without proper documentation, raising serious questions about transparency and governance.
The report accuses the KTDA legal department of professional misconduct for failing to prepare and register charges and mortgages for these loans.
Another major issue involved the purchase of unsuitable land using farmers’ money. One parcel was rocky and cost Ksh 59.4 million, while another was swampy land in Nyandarua bought for Ksh 28 million.
Both purchases have been flagged as wasteful and those responsible are to be surcharged. Furthermore, Ksh 38 million was used to pay legal fees, another questionable expense that raised eyebrows.
A direct loss of Ksh 370 million was also reported, which affected Kagwe Tea Factory, forcing it to take loans just to keep running.
Since their removal from office in 2021 following a Presidential Executive Order, the former officials have been fighting hard through court cases and backroom deals to regain control.
They supported Enos Njeru when he tried to block the appointment of Chege Kirundi as the new KTDA board chairman. However, their court efforts failed, and a judge dismissed Njeru’s petition due to lack of merit.
Even after the court ruling, the cartel did not stop. They have been working with shady suppliers and filing legal challenges in a bid to delay the new board’s reform plans.
Chege Kirundi and his team have been pushing for accountability and want to introduce a new strategic plan in July 2025 that aims to benefit the small-scale farmers. The sad reality is that around 620,000 farmers have been the biggest losers in all this.
Their earnings were misused by people who were supposed to protect their interests. The former KTDA bosses, instead of focusing on farmer welfare, were more interested in personal gain.
They now fear the reforms under Kirundi because they threaten to expose years of corruption and mismanagement.What is happening at KTDA is a warning to other state-linked organizations.
The audit report is clear in its recommendations. Those involved must be prosecuted, and the agency must follow the Tea Act 2020 by paying farmers their dues on time. Moving forward, the board must tighten risk management policies and ensure full transparency in all financial dealings.
The hope is that KTDA will finally return to its original role of supporting farmers and not enriching a few well-connected individuals.
Add Comment