Agriculture CS Mutahi Kagwe has brokered a deal to resolve a long-standing dispute at the Kapkoros Tea Factory following a meeting with key stakeholders, including elected leaders.
The meeting was held at Kilimo House, Nairobi, to resolve the issues that had led to farmers boycotting plucking of tea.
The farmers from Motigo and Olenguruone are pushing for financial and operational independence from Kapkoros, the parent factory.
The leaders and stakeholders agreed to allow immediate financial and operational separation of Motigo and Olenguruone factories from Kapkoros Tea Factory Plc, as desired and voted for by farmers from the two factories.
They also urged farmers in the two factories to resume plucking and delivery of tea to their respective factories, acknowledging that the boycott had caused great losses.
The meeting resolved that Kapkoros Tea Factory directors convene a Special General Meeting of the shareholders within the next 21 days to approve and address the raised issues in a systematic and judicious manner, and the directors agree on the modalities of separation.
“The Construction of Kamogoso Tea factory shall be supported by the Kapkoros Group through such an arrangement as will be mutually agreed upon by the farmers, without any duress," a communique from CS Kagwe reads.
“That the modernisation of the old factories be undertaken by Kapkoros Group, with the assistance of the government."
It was further agreed that all parties cease hostilities against each other and stop engaging in any action that may interfere with normal operations or management of the 4 tea factories, and withdrawal of active petitions, and court cases.
“That the directors, in conjunction with their management agent, KTDA (MS) Ltd, shall take urgent measures to address the high cost of production in all the four factories, and also enhance the quality of teas.”
Kagwe warned that any factories that will be found to be perpetuating the hawking of Greenleaf will be delicensed in accordance with the Tea Act, 2020.
Present were the State Department for Agriculture Principal Secretary Kipronoh Ronoh, the Kenya Tea Development Agency, the Tea Board of Kenya CEO Willy Mutai, Bomet Senator Hilary Sigei, and the entire board of directors of Kapkoros Tea Factory and its satellite factories of Tirgaga, Motigo and Olenguruone.
Farmers from Motigo and Olenguruone had on December 15, 2023 voted for separation of their accounts and financial autonomy from Kapkoros.
An Annual General Meeting on December 12, 2024, and a Board Meeting on January 9, 2025, had overwhelmingly reaffirmed these decisions.
