This archive report was first published on 27 September 2021.
On September 24, 2021, Agriculture Cabinet Secretary Peter Munya visited the Kenya Tea Development Authority (KTDA) factory in Kapsara, where he directed the County Commissioner to oversee an investigation into the alleged misappropriation of Sh379 million.
The funds were secured as loans to boost the factory's operations, but could not be accounted for, according to KTDA Chairman Kennedy Indusa.
Former regional officials of the agency are accused of inappropriate use of loan funds, including securing a loan of Sh103 million in 2018 and Sh276 million in 2019 to acquire modern machines and install an automated power line.
However, the machines were faulty, lowering the quality of tea processed at the factory, and the management failed to procure modern machines, said Munya.
Tea farmers affiliated to the factory are not enjoying the benefits from their venture due to low quality and high production costs, Munya added.
"The debt owed to a lending firm has contributed to poor operations of the factory and negatively impacted on the prices of its tea, owing to its low quality that resulted from machines that are faulty," said Munya.
KTDA Chairman Kennedy Indusa said the loans had troubled operations of the factory, with farmers being frustrated to repay it.
"Farmers are not enjoying the benefits from the sale of tea processed here, like bonuses, because a huge amount goes to repaying the loans," said Indusa.
Cherang'any MP Joshua Kuttuny said those behind misuse of the funds must be held accountable for the mess that had seen farmers experience losses despite having spent a lot in production costs.
"The perpetrators are walking free, yet their actions have undermined services of the factory whose productivity has been compromised as a result of the poor decisions that were made initially," said the MP.
