KTDA warns critics against circulating leaked loan data

KTDA urges tea farmers to ignore unverified loan documents circulating online amid growing concerns over factory finances and governance. [File Courtesy]

Fear is looming in smallholder tea factories following the threat that farmers will, on Monday, petition to kick out directors from office over the alleged unexplained loans.

Other quarters call for somberness to approach the issues about the running of the tea factories as they disregard Monday’s tea farmers strike cum presentation of petitions to the factory leadership.

KTDA has moved to put the record straight after the farmers raised concerns after the Tea Board of Kenya (TBK) reported that the tea factories, by December 31st last year, had a loan balance of Sh34.2 billion.

The leadership has dismissed the poster and several documents currently circulating on social media platforms as they contain unverified information on financial affairs, loans, and governance.

In a statement published in local dailies, KTDA corporate communication clarifies that the documents and information being circulated have not been officially issued or authenticated by KTDA and do not represent the official position of the agency. Constructive scrutiny is welcome and necessary.

They welcomed constructive scrutiny based on facts and authenticated documents. Evidence and due process, disregarding the use of fabricated documents, anonymous propaganda and misleading social-media campaigns.

“We therefore urge our farmers, shareholders, financiers, business partners, regulators and the public to ignore the false information,” read part of the statement.

The KTDA reassured the financiers, banks, suppliers, investors and other business partners that the organisation values the relationships it has built with them over many years.

It cited that political interference and other personal interests should not be allowed to interfere with the professional, commercial and governance affairs of KTDA.

“The factory directors represent tea farmers with the expectation to discharge their fiduciary responsibilities independently, professionally and in accordance with the law and the interests of the farmers they serve,” added the statement.

The organisation, the corporate department, continued that they have established mechanisms for communicating audited financial information, reports, governance matters and other material information directly to its shareholders and stakeholders and will not engage in social-media-driven speculation.

“Our financing arrangements and commercial relationships are governed by formal agreements, established banking procedures and applicable laws.

The circulation of unverified and false allegations should not be construed as a reflection of the status or integrity of these relationships,” read part of the communication to the 700,000 farmers.

Charles Karumwa, a farmer, blamed the TBK for the release of the reports surrounding the loans that led to the anxiety among the growers as they were awaiting the pronouncement of the bonus payment.

“The report ought to have been passed through the factories before it was made public to ensure all the information is verified and action taken,” said Karumwa, a farmer in Kirinyaga.