NAIROBI, Kenya – The Kenya Tea Development Agency (KTDA) has suspended all staff travel, off-site meetings, and training sessions across its subsidiaries as part of sweeping cost-cutting measures aimed at tightening governance and reducing operational expenses.
In an internal memo dated October 21, 2025, and addressed to all general managers, subsidiary heads, and department leaders, KTDA management said the directive aligns with the group’s renewed focus on governance, compliance, and cost management.
“All staff travel is suspended until further notice. No travel, domestic or international, for any business-related purpose shall occur without explicit prior written authorisation from the Holdings Board through the Group CEO,” the memo reads in part.
The memo further bans all external meetings—whether at hotels or tea factory premises—unless approved in writing by the Holdings Board upon recommendation from the Group CEO.
Similarly, all training sessions, whether planned or ongoing, have been put on hold pending clearance by the chief executive.
“This directive applies to all employees across all functions and levels. The only exceptions will apply to roles deemed operationally critical and must be pre-approved in writing by the Group CEO,” KTDA said.
Department and subsidiary heads have been instructed to communicate the directive immediately and ensure full compliance across the group.
Audit of Factory Loans Ordered
The directive comes as KTDA faces growing pressure from farmers and government officials over reduced tea bonuses this year.
The State Department for Agriculture has launched a comprehensive audit into the financial management of KTDA-managed factories, particularly focusing on loans and debt servicing.
Principal Secretary for Agriculture Kipronoh Ronoh said the government had received numerous complaints from smallholder farmers about lower bonus earnings, prompting a review of factory finances.
“These concerns have necessitated an in-depth review of the financial obligations and management practices within the factories,” Dr. Ronoh said.
In a letter to Tea Board of Kenya CEO Willy Mutai, Ronoh directed the board to identify how much each factory has borrowed, how the funds were utilised, the loan terms, and current outstanding balances.
“The findings of this audit will enable the Ministry to evaluate the financial sustainability of the factories and to formulate appropriate operational measures aimed at addressing the challenges currently facing the tea sub-sector,” Ronoh added.
The Tea Board has been ordered to commence the audit immediately and submit a detailed report within 14 days. The letter was copied to Agriculture Cabinet Secretary Mutahi Kagwe, Tea Board chairperson Ndung’u Gathinji, and KTDA chairperson Chege Kirundi.
Farmer Discontent Over Low Bonuses
More than 680,000 smallholder farmers represented by KTDA have voiced frustration over the sharp decline in bonus payments for the 2024/25 financial year compared to the previous season.
The agency has attributed the drop to global market volatility, weakened currencies, and higher operational costs, but farmers and MPs have accused it of mismanagement and lack of transparency in handling factory finances.
The latest cost-cutting directive, coupled with the ongoing audit, signals mounting efforts by both KTDA and the government to restore accountability and rebuild trust in Kenya’s most lucrative cash crop sector.
