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State’s bid to take over national tea agency meets opposition

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Published on Monday, 30 July 2007 03:05

Major stakeholders in the tea industry in Kisii, Nyamira and Masaba Districts have differed over the proposed return of KTDA to the Government. Three weeks ago, MPs passed a motion moved by Kitutu Chache MP Jimmy Angwenyi, urging the Agriculture minister to rescind the legal notice that created the agency in 1999, saying the move would protect small-scale tea farmers against exploitation. This means the agency, which has been operating as a private limited company, would have it affairs controlled by the State. 

While some members of Parliament and farmers have said the proposal was for the good of small-scale growers, directors from Zone 10 have described the move as retrogressive. Assistant minister for Sports, Joel Onyancha, alleged that tea factory directors in the country were collecting signatures from farmers opposing the takeover. He said the move will fail as farmers supported the takeover.

Kitutu Masaba MP Mwancha Okioma said KTDA has impoverished farmers. “Ever since KTDA was turned into a parastatal, farmers earnings have not improved,” he added. A farmer, Andrew Magara, said: “We are fully behind the takeover and any efforts by directors to campaign against it will fail.”

The Tombe Tea Factory board of directors met with buying centre committee members and resolved to reject the takeover.

“Farmers should be given a say in the proposed takeover. They are earning more than they were during the agency days,” said the chairman Joseph Nyamwaro.

Mr Nyamwaro asked the Agriculture minister Kipruto Kirwa to make public a report from a task force he appointed early this year. “The task force report should be made public, so that we know what people suggested,” he said. He added that the Government should not rescind the decision to privatise KTDA, saying, world over economies were going the liberalisation way. The KTDA directors met at Nyansiongo Tea Factory in Masaba District and said that the planned takeover of a limited company was against the Companies Act.