On Tuesday, April 8, 2025, the longstanding dispute at Kapkoros Tea Factory (Plc) in Bomet County, which had threatened to undermine the gains made by tea farmers in Bomet and Nakuru counties, was amicably resolved during a consultative meeting convened by the Cabinet Secretary for Agriculture, Senator Mutahi Kagwe, at Kilimo House, Nairobi. In attendance were the Principal Secretary of the State Department for Agriculture, Dr. Kipronoh Ronoh, the CEO of the Kenya Tea Development Agency (KTDA), the CEO of the Tea Board of Kenya (TBK), Willy Mutai, Bomet Senator Hon. Hilary Sigei, and the entire board of directors of Kapkoros Tea Factory and its satellite factories in Tirgaga, Motigo, and Olenguruone.
For the past week, farmers from Motigo and Olenguruone had been boycotting the plucking and delivery of green leaf in a concerted push for financial and operational independence from Kapkoros, the parent company, resulting in significant losses as thousands of kilograms of tea were left to waste. Kapkoros also manages the Tirgaga factory. Farmers from Motigo and Olenguruone had voted on December 15, 2023, for the separation of their accounts and financial autonomy from Kapkoros. This decision was reaffirmed during the Annual General Meeting (AGM) on December 12, 2024, and at a Board Meeting held on January 9, 2025.
The leaders gathered, fully aware that the interests of the farmers should come first, and as a result, they committed to respecting the wishes of the farmers. They made the following resolutions:
- Immediate Financial and Operational Separation: Motigo and Olenguruone factories will immediately separate from Kapkoros Tea Factory Plc as per the wishes of the farmers, confirmed during the AGM and Board Meeting.
- Resumption of Operations: Farmers from Motigo and Olenguruone will immediately resume plucking and delivering green leaf to their respective factories.
- Smart Card Issuance: The process of coding and issuing smart cards to farmers in these two factories will proceed as planned.
- Special General Meeting (SGM): Kapkoros Tea Factory directors will convene a Special General Meeting (SGM) of the shareholders within the next 21 days to address the aforementioned issues in a systematic and fair manner.
- Fairness in the Separation Process: The directors will agree on the modalities of the separation, ensuring fairness and transparency throughout the process.
- Support for Kamogoso Tea Factory Construction: Kapkoros Group will support the construction of Kamogoso Tea Factory through an arrangement that is mutually agreed upon by the farmers, without any coercion.
- Modernization of Old Factories: Kapkoros will spearhead the modernization of its older factories, with assistance from the government.
- Cease of Hostilities: All parties involved will cease hostilities and stop any actions that could interfere with the normal operations or management of the four factories, withdrawing all active petitions and court cases.
- Cost of Production and Tea Quality: The directors, in collaboration with their management agents, KTDA (MS) Ltd, will take urgent measures to address the high cost of production in all four factories and improve the quality of tea produced.
- Illicit Greenleaf Trading: Any factories found to be engaged in the illicit hawking of green leaf will be delicensed in accordance with the Tea Act, 2020.
This resolution marks a significant turning point in the relationship between the farmers, the factories, and the government, and is expected to enhance the sustainability of tea farming in the Bomet region and beyond. The decisions made will help strengthen the management of tea factories, ensuring a more transparent and farmer-centric system that prioritizes the well-being of those involved in tea production.
