Government directs TBK to ensure compliance with Tea Act
Business
By
Boniface Gikandi
| Dec 03, 2025
A major crisis is looming in small-holder tea factories after the government ordered Kenya Tea Development Agency (KTDA) directors holding direct and indirect commercial interests with other companies to relinquish their positions within 30 days.
The Ministry of Agriculture has directed the Tea Board of Kenya (TBK) to ensure full compliance with the Tea Act and regulations within the tea value chain, including actors or persons dealing in tea.
Agriculture Principal Secretary Kiprono Ronoh said that a compliance review of the directors in the smallholder tea factories managed by Kenya Tea Development (MS) Ltd revealed that several tea factory directors are also serving as directors in other companies with a direct or indirect commercial relationship with the tea factory, contrary to the Tea Act, 2020.
In a letter to KTDA Holding Chairman Chege Kirundi, dated November 28, 2025, the PS said the Tea Act provides that a director of a tea factory should not serve as a director in another company that has a direct or indirect commercial relationship with the tea factory in which he or she serves.
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"A compliance review of the directorship of smallholder tea factories managed by Kenya Tea Development (MS) Ltd has revealed that several tea factory directors are also serving as directors in other companies having a direct or indirect commercial relationship with the tea factory contrary to the Tea Act, 2020," read part of the circular seen by The Standard.
The circular was copied to Agriculture Cabinet Secretary Mutahi Kahiga, KTDA CEO Wilson Muthaura, and TBK CEO Willy Mutai.
The government ordered Kirundi to align the internal constitution documents, including the Articles of Association with the Tea Act, 2020 and other relevant laws.
The PS ordered all directors linked with other companies doing business with the tea factories to relinquish their positions immediately within their respective tea factories.
"They should submit a copy of an amended CR12 to my office within 30 days from the date of this letter," ordered the PS.
The listed companies are Kenya Tea Development Agency (Holdings) Ltd, and the subsidiaries of Chai Trading Company Ltd, Kenya Tea Packers Ltd, TEMEC Machinery & Engineering Company, KTDA Power Ltd, Greenland Fedha Ltd, Majani Insurance Brokers Ltd, KTDA DMCC and Chai Logistics Centre.