KTDA board launches major purge over corruption
The decision follows a high-level investigation ordered by the Tea Board of Kenya, which unearthed troubling findings during a forensic audit of the Mombasa-based subsidiary
In a bold move aimed at restoring accountability, the Kenya Tea Development Agency (KTDA) has suspended several senior executives from its logistics arm, Chai Trading Company, over serious allegations of corruption and financial irregularities.
The decision follows a high-level investigation ordered by the Tea Board of Kenya, which unearthed troubling findings during a forensic audit of the Mombasa-based subsidiary.
The audit was prompted by complaints of unethical procurement practices and suspected misappropriation of funds.
Acting swiftly on the audit’s recommendations, the KTDA board, chaired by Chege Kirundi, held a crisis meeting to address the matter.
The following day, detectives from the Directorate of Criminal Investigations (DCI) raided Chai Trading’s offices, removed the Chief Executive Officer, Francis Muthamia, and several top officials in the finance and procurement departments.
The executives were then issued with formal notices requiring them to justify why they should not face prosecution.
Insiders confirmed that the entire finance leadership team had been suspended and replaced by interim managers from KTDA headquarters.
This crackdown is part of a broader effort to stamp out corruption within KTDA’s network of subsidiaries, with internal sources hinting that further investigations could reach the KTDA headquarters. According to sources, the KTDA top management staff are also under scrutiny by DCI investigators.
The situation at Chai Trading has been under the spotlight before.
In May 2022, the Assets Recovery Agency filed a case against CEO Francis Muthamia after Sh35million was found in his personal account—suspected to be proceeds of crime related to lost earnings by tea farmers. A court ruling in October 2024 confirmed the funds were illicit and ordered they be forfeited to the state.
Chai Trading Company, fully owned by KTDA Holdings, is a key player in tea logistics and value addition, offering services such as warehousing, freight handling, and export packaging. It is one of eight subsidiaries supporting KTDA’s role in managing the tea value chain on behalf of more than 600,000 smallholder farmers across 16 counties.
The KTDA board, under Kirundi’s leadership since a leadership shake-up last year, has made clear its intention to clean up the entire system and ensure farmers receive full value for their produce.
This includes closer oversight of all KTDA affiliates, among them Kenya Tea Packers, Majani Insurance Brokers, Tea Machinery and Engineering Company, KTDA Foundation, and Greenland Fedha.
KTDA is owned by 54 tea factory companies representing smallholder farmers. Many have expanded operations by setting up satellite factories, bringing the total number of tea processing facilities to 69.
As the DCI wraps up its investigations, legal proceedings against the suspended Chai Trading officials are expected.
The clean-up drive has been widely welcomed by farmers and industry stakeholders, who see it as a long-overdue step toward transparency and better governance in Kenya’s vital tea sector.
