Sh322million KTDA probe faces fresh storm over lawyers linked to Kenya Kwanza powerbroker
Fears probe into payment to Chinese firm could be derailed as KTDA officials summoned by DCI reportedly told to give statements only in presence of agency-appointed lawyers
A Directorate of Criminal Investigations (DCI) probe into a controversial Sh322 million payment by Kenya Tea Development Agency (KTDA) Holdings Ltd to Chinese firm Oriole Homes Limited has taken a dramatic turn amid fears that the investigation could be slowed, compromised or even scuttled by the involvement of lawyers allegedly linked to a senior Kenya Kwanza powerbroker.
The DCI has so far summoned five senior KTDA officials to record statements and surrender documents relating to the payment, which investigators are examining over questions surrounding its approval, contractual basis and transfer of funds.
But the investigation has hit an unexpected hurdle, with sources familiar with the matter claiming that some of the officials have yet to record their statements despite having been formally summoned.
Investigations by The Informer Media Group that KTDA has engaged a law firm reportedly associated with a powerful figure in the Kenya Kwanza administration to represent officials being questioned by investigators.
Sources familiar with the proceedings allege that the officials have been advised that they should not record statements with the DCI unless lawyers appointed by KTDA are present.
The development has raised questions and fallout within the KTDA Board over whether the legal arrangement could interfere with the independence and pace of the criminal inquiry, particularly as investigators seek to establish how the Sh322 million was approved and paid.
The DCI summons were issued by Nairobi Regional DCI boss Daniel Kandie, who required five senior KTDA officials to appear for questioning.
They include board director and immediate former KTDA National Chairman Geoffrey Chege Kirundi, legal officer Mathew Odero, Company Secretary Esther Osoro, finance official Tarsila Wanja and Group Head of Procurement and Logistics Peter Mungai.
Kandie warned that failure to comply with the summons could expose the officials to prosecution under Section 52(2) of the National Police Service Act, 2011.
The investigators also demanded certified copies of key records, including the contract allegedly underlying the payment, minutes authorising the transaction and financial documents showing how the money moved from KTDA Holdings to Oriole Homes.
The payment is understood to have arisen from a breach-of-contract claim linked to the supply of fertiliser, but investigators are probing whether KTDA followed the required internal procedures and whether the transaction received all necessary corporate approvals before the funds were released.
The emerging legal drama has, however, widened the spotlight from the payment itself to the broader question of who controls KTDA and whether political interests are influencing the agency’s affairs.
KTDA, which manages the interests of more than 600,000 smallholder tea farmers, has in recent months been engulfed in an unprecedented leadership crisis characterised by boardroom battles, executive exits, contested decisions and allegations of political interference.
KTDA Group Chief Executive Officer Eng. Francis Miano declined to comment on the investigation when contacted by The Informer Media Group, instead referring questions to Group Head of Corporate Affairs Ndiga Kithae.
“On that matter, I will refer you to Ndiga Kithae,” Miano said by telephone.
Kithae initially said he was in Naivasha for a meeting and could not immediately comment. He later responded by WhatsApp, saying: “Good morning. The matter is under investigation. It is premature to comment at this stage.”
The DCI probe comes against the backdrop of a bruising power struggle that has shaken the tea agency’s leadership.
The turbulence intensified with the removal of former CEO Wilson Muthaura, who was subsequently replaced in an acting capacity by Miano. KTDA later advertised the position of substantive CEO, but months after applications closed, the agency has not publicly disclosed the outcome of the recruitment process.
The silence has fuelled speculation over competing interests seeking to shape the agency’s future leadership.
The board has also undergone a dramatic change. Chairman Geoffrey Chege Kirundi left the position, paving the way for the return of former chairman Enos Njeru.
Sources within KTDA claim Kirundi’s troubles were connected to a series of financial decisions that allegedly unsettled powerful interests, including the cancellation of multi-million-shilling tenders and refusal to approve pending bills running into billions of shillings.
Those who supported the former chairman have portrayed the decisions as efforts to impose financial discipline and block questionable expenditure. His critics, however, allegedly regarded them as barriers to commercial and political interests with stakes in KTDA’s vast financial operations.
The resulting confrontation is said to have triggered an intense struggle over control of the agency, with insiders alleging that officials perceived as obstacles to powerful interests were systematically targeted.
