Jul 28, 2021

Mawazo Writing Africa

Writing about the main

In footsteps of Mumias Sugar, KCC…. Tea agency offers farmers poisoned chalice

That is, unless they are not stopped.

Untangling the tea farmer from what the barons will want to do the Secretary of the Agriculture Cabinet will be Peter Munya’s last fight against the cartels.

They are currently in the process of legalizing their mischief – and they have made it public. On Thursday, the Chebut Tea Factory held the final elections that were not monitored by KTDA headquarters and which may herald a new dawn in the relationship between farmers and the agency, the Kenya Tea Development Management Service.

But as the elections went on and KTDA-friendly directors were evicted from farmers, some directors were from KTDA Holdings Limited – the outfit that controls the ancient farmers’ assets, some of which are the parastatal Kenya Tea Development Authority decided to pass resolutions that would grant individual farmers new shares.

Sugar-coated poison

On the at first glance, the deal looks good. But this is the final bait – or if you want; the final dose of a sugar-coated poison; a poisoned chalice.

Let me tell you a story.

Once upon a time, some wise people made up their minds The way to get control of Kenya’s largest sugar company, Mumias Sugar Company, which was privatized, was to involve individual farmers rather than their own Mumias Outgrowers Company. They had the support of politicians who thought this was a wise move and could bring them political illusions. Soon when the shares went public on the Nairobi Stocks Exchange, some brokers descended into the villages of Mumias and took advantage of the poor farmers and bought the shares at a price of just Sh2 versus the issue price of Sh6.2. Currently, only a handful of farmers can claim ownership of the rundown Mumias Sugar Company. The farmers have no share, can do nothing, and private institutions now want to run mumias.

And that’s why I’m worried.

The directors of KTDA Holdings have announced that they will be listing the shares, and your guess is as good as mine. In 10 years, if the tradability of the shares is canceled according to information from KTDA, there will be a significant increase in the farmers’ shares by brokers. Keep this paragraph for future reference.

KTDA’s move is not determined by love for the farmer overnight. No. It is informed by the fear of only a few. You don’t want to let go of the goose that lays the golden eggs. With all of the KTDA directors either losing their factory-level seats or choosing not to run, the HQ cartels decided in April to amend the statutes to create the new category of individual ownership, ostensibly “to allow for the allocation of the too enable company shares to individual farmers under a new category of shareholders known as tea farmers. “This emerges from a press release of the KTDA, which was published on Sunday, May 23rd.

” The new changes include a seat on the board of directors of KTDA Holdings, who will be elected directly by the shareholders to vote for all directors of the company at the general meeting, ”said KTDA.

Weakening the role of the factory

Essentially, this will give KTDA directors, the same people who impoverished tea farmers, the opportunity to run to run KTDA and thwart efforts to streamline the tea sector. Furthermore, the whole idea is to weaken the factory’s role in managing KTDA by dividing up the farmers.

The smallholders will be the main losers since their votes at headquarters The level is drowned by the big farmers who lost control thanks to the one-breeder-one-vote rule.

But the plot could be deeper than that and the story The giant Kenyan Cooperative Dairies (KCC) can help us here.

The story of KCC

In 1979, President Moi ordered KCC to distribute free milk to elementary schools as part of a government program. For KCC, this deal was too good to be true. During the 1979/80 fiscal year, the government had allocated Sh169 million to the project, and KCC officials – and members – were experiencing a new boom. It would prove to be a mirage once the government began to stall payments in fiscal 1998/99 and cut the allocation to a meager 20 million Shillings.

So to this one By 1996, Moi had appointed his son Raymond to be one of the KCC directors, and by 1996 the company had made a $ 1.6 billion loss, stopped paying farmers, and was cannibalized from within – through false accounting. Parliament was told that as of 1993, several politically correct companies were charging KCC for non-existent materials or excessive costs.

For example, KCC would buy a bale of toilet paper at Sh445 than its actual one Cost was Sh150. From 1989 to 1996, Parliament was told, the KCC never held an annual general meeting, and MPs were told that it was run by the “son of a sacred cow.” As such, farmers went for years without pay and on August 5, 1999, KCC under Mr. Graham Shirlock of PriceWaterHouseCoopers was bankrupt.

According to some court records, Moi had appealed to Kenya Commercial Bank turned to appoint a beneficiary manager and stop the bleeding of assets. He then devised a structure in which the dairy farmers could invest and revitalize their fortunes, and appointed notable figures, General Daudi Tonje, Kipchoge Keino, B. Nightingale and P. Low, to restructure the KCC.

Take Control

When it became apparent that KCC’s restructuring could indeed be successful, Moi called a city attorney and demanded that he take out the insurance want to take over the entire process and want to take control of the later company. Moi had negotiated to buy KCC from KCB for a sum of Sh400 million, while the value of his property was “over Sh5 billion” according to court records.

In the year In 2000, two new companies, KCC (2000) Limited and KCC Holdings Limited, were founded, which allegedly bought KCC Limited for Sh400 million from the recipient. KCC Holdings pretended to invite a private placement on KCC shares.

Moi registered a company here and bought shares worth millions of shillings. Other barons lined up as well.

When Mwai Kibaki came to power and started bailing out KCC, trying to compensate the farmer shareholders, he found it was Moi acted – with agents and companies like Kabarak High and Kabarak Limited, who along with some friends were the real owners of KCC Holdings Limited.

mischief

What am I saying?

The distribution of KTDA Holdings’ shares – at this late hour – is malicious and could be a result of realizing that the Government could take over their assets within the KTDA – which should be done – from the jaws of the current civil suit-loving carpet baggers. Therefore, some people might line up for compensation just in case.

When in doubt, see what happened in the CCU, which was once a solid institution . After falling down from cartels that never responded to the farmers, the CCU was eventually bankrupted by KCB – the same institution that was part of the millers’ historical troubles.

Whenever KPCU shareholders complained about the way the company was run, the directors formed an investigative committee made up of cronies. When Kibaki took over the presidency, no one seemed to know the CCU’s financial condition – its assets and liabilities. Some of the powerful Kibaki allies were also part of the coffee chaos.

In March 2001, the CCU was “notified” in a letter signed by Daniel Iriga. then the relationship manager with a threat: “If arrears are not settled … we will retrieve all debt and remove the limits of your overdraft accounts.”

KPCU assets sold

Soon the recipients came and started selling the CCP’s assets. But something else happened. A city magnate with deep pockets approached the bank and agreed to settle the loan, in return he was able to receive any unallocated shares. He paid the loan and got control of the CCU and appointed his own managers.

And these are the people who had confiscated the peasants’ fortune, worth billions of shillings and had to be kicked out with the formation of the New KPCU to save the assets.

Finally, there is the case of Kenya Seeds – which I highlighted here a few months ago. To dilute the government’s stake in Kenya Seeds, the managers claimed they were selling stocks that were bought by the CEO and his family. He’s still fighting in court to control the Kenya Seeds Company along with its assets.

So what KTDA is trying to do has a story. Once upon a time Kanu pretended to transfer KICC to himself and it took an executive order to get it back Burke quit: “The only thing that is necessary for the triumph of evil is that good people do nothing.”

I did my part.

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@johnkamau