Court censures KTDA board for forcing ex-CEO Tiampati out in ‘illegal’ retirement scheme

The Employment and Labour Relations Court has awarded former Kenya Tea Development Agency (KTDA) Holdings Chief Executive Officer Samuel Lerionka Tiampati Sh9,555,570 in compensation after finding that the company’s board unlawfully and unfairly forced him out of office.

In a judgment delivered on January 16, 2026, Justice Agnes Kitiku Nzei ruled that the KTDA Board acted wrongfully, unlawfully, and dishonestly in handling Tiampati’s exit. While the court dismissed his claim for Sh77.4 million under a Voluntary Early Retirement (VER) package—holding that the board had the managerial prerogative to introduce and later revoke the scheme—it strongly condemned the process used to remove him.

The dispute dates back to December 2020 when KTDA introduced a VER scheme that initially excluded contract staff, including the CEO. In January 2021, the board revised the scheme to include contract employees. Tiampati applied on February 1, 2021, and his application was approved on February 19, with his last working day set for June 30, 2021. He proceeded on terminal leave in line with the approval.

However, while on terminal leave, the board abruptly directed him to proceed on compulsory leave. Days later, it revoked the entire VER scheme and cancelled his approved retirement. In September 2021, the board purported to retire him under “normal retirement,” a category he had neither applied for nor qualified for.

Justice Nzei held that forcing Tiampati into normal retirement without reaching the mandatory age, resigning, or facing disciplinary proceedings amounted to unfair labour practice, warranting compensation despite the lawful cancellation of the VER scheme.