KTDA suspends staff travel, training in cost-cutting drive amid outcry over farmers' bonus cuts
KTDA management said the move aligns with the group’s ongoing priorities on governance, compliance and cost management.
Staff travel, off-site meetings, and training sessions across all Kenya Tea Development Agency (KTDA) subsidiaries have been suspended as part of the agency’s efforts to strengthen governance and streamline operational costs amid concerns over low farmer bonuses.
In an internal memo dated October 21, 2025 and addressed to all general managers, heads of subsidiaries and department heads, KTDA management said the move aligns with the group’s ongoing priorities on governance, compliance and cost management.
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“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,” reads the memo.
It further directs that all external meetings, whether at hotels or within tea factory premises, are prohibited unless formally approved in writing by the Holdings Board upon recommendation by the Group CEO. Similarly, all planned, ongoing or upcoming training activities are suspended unless specifically cleared by the Group CEO.
“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,” reads the memo.
Department and subsidiary heads have been instructed to communicate the directive immediately and ensure full compliance.
The directive coincides with a government-mandated audit of loans taken by KTDA-managed factories, following widespread concern over the reduced bonus payments this financial year.
State Department for Agriculture Principal Secretary Kipronoh Ronoh said tea growers had raised complaints over lower earnings, prompting a detailed review of financial management practices in the factories.
“These concerns have necessitated an in-depth review of the financial obligations and management practices within the factories,” Ronoh said.
In a letter to the Tea Board of Kenya Chief Executive Officer Willy Mutai, Ronoh instructed the board to determine the total amount of loans borrowed by each factory, how the funds were utilised, the terms and conditions of the loans and the 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,” he added.
The Tea Board has been directed to begin the audit immediately and submit a detailed report within 14 days. The letter was copied to Agriculture Cabinet Secretary Mutahi Kagwe, Tea Board chairman Ndung’u Gathinji and KTDA chairperson Chege Kirundi.
The directive comes as over 680,000 smallholder tea farmers represented by KTDA have expressed dissatisfaction over significantly lower bonus payments compared to the previous year.
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