Kapkoros Tea Factory directors have been directed to convene a Special General Meeting (SGM) of shareholders within 21 days to approve immediate separation of two subsidiaries.
Kapkoros Tea Factory has been involved in a wrangle with two of its subsidiaries, Motigo and Olenguruone whose farmers had boycotted plucking and delivering their green leaf to the factory demanding for financial and operational independence.
Following a meeting convened on Tuesday by Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe, Motigo and Olenguruone tea factories will now operate as independent entities.
“That the directors agree on the modalities of separation, to take due cognizance of all the issues obtaining, and exercise fairness in the discharge of their responsibilities,” said Kagwe.
On December 15, 2023, farmers from Motigo and Olenguruone had voted for separation of their accounts and financial autonomy from Kapkoros which was subsequently approved in the Annual General Meeting held on December 12, last year.
The resolution also received overwhelming support from Kapkoros Tea Factory Board during the meeting held on January 9, this year.
During today’s meeting, Kagwe also directed farmers from Motigo and Olenguruone to immediately resume
plucking and delivery of green leaf to their respective factories.
“That henceforth, 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 withdraw all active petitions, and court cases,” added Kagwe.
Coding and issuance of the smart cards to farmers in the two factories is also set to proceed as earlier planned.
Under the deal, Kamogoso Tea factory which also manages Tirgaga Tea Factory shall support construction of Kamogoso Tea Factory and modernize old factories with government assistance.
Additionally, directors, in conjunction with their management agent, Kenya Tea Development Agency are expected to take urgent measures to address the high cost of production in all the four factories based in Bomet County, and also enhance the quality of teas. Kagwe further warns that factories found to be perpetuating the hawking of green leaf tea to be delicensed in accordance with the Tea Act, 2020.
