This archive report was first published on 17 October 2019.
Kenya Tea Development Agency (KTDA) is facing a storm over its bid to block the construction of a satellite factory in Meru.
Since 2007, KTDA has been deducting Sh1 per kilogramme from the 11,000 shareholders of Miciimikuru Tea Factory, with farmers contributing Sh270 million towards the project.
However, KTDA claims the project is not viable due to the proximity of Athi Tea Factory, which was constructed in 2010 as a satellite to Kiegoi Tea Factory.
Yesterday, Miciimikuru Tea Factory board chairman Francis Akula stated that KTDA had conducted a feasibility study, with a report to be presented to shareholders on November 18.
"After presentation of the report, farmers will decide whether to build a new factory or not," said Mr Akula.
Despite plans to co-own Athi factory with Kiegoi Tea Factory, farmers rejected the proposal, citing concerns over debt financing and reduced earnings.
