In an address to the Nation in January 2020, President Uhuru Kenyatta called for reforms in the tea sector which would benefit farmers. MANAGMENT HITCHManagement of tea factories has also been shaken under the new law which sector players say could affect smooth operations of these entities, while increasing their cost of running. This provision removes the rights of shareholders to determine the size of their boards as enshrined in Company Law and the Constitution of Kenya. Further, the law requires that directors of a tea factory companies be elected through ademocratic system of one grower one vote, contrary to company law that stipulate that the board be elected through shares. In October last year, the 54 tea factory companies managed by the KTDA released Sh27.62 billion, being the final payment, popularly known as “bonus”, to tea farmers.

Source: The Star January 06, 2021 00:56 UTC