Ex-Kenya Seed boss seeks to oust directors, privatise firm

Former Kenya Seed managing director will over the next 60 days seek to privatise the firm and oust government-appointed directors.

Nathaniel Tum says the court has allowed him to convene a shareholders’ meeting to uphold or cancel a decision made in 2000 to offer executives of Kenya Seed a 12.8 per cent stake—which privatised the firm.

The stake was sold to top managers, diluting the government’s shareholding from a majority of 52.8 per cent to 40 per cent.

Mr Tum’s extraordinary general meeting, which will restrict the government’s voting rights to 40 per cent, also seeks the replacement of directors appointed by the State including the chairman Peter Kingori and the principal secretaries of Treasury and Agriculture ministry, Kamau Thugge and Sicily Kariuki respectively.

READ: State in new fight for control of Kenya Seed with ex-CEO

The meeting and the planned elections of director has drawn protests from the State through Agricultural Development of Kenya (ADC), arguing that the ownership of the 12.8 per cent stake is still being disputed.

“The court ordered that Kenya Seed Company shareholders meeting be held within 60 days from December 5,” said Mr Tum in a notice to the firm’s shareholders.

“The said general meeting when it is held will involve pre-2001 shareholders.”

The ADC in court documents said the notice calling for the extraordinary general meeting is defective, arguing that it’s only the government that can summon such a meeting, given its position as a majority shareholder.

“If the meeting is allowed, it will lead to confirmation of an illegality namely the privatisation of a government parastatal,” said Kenya Seed.

The State-owned agro based firm reckons the company’s register has not been rectified after the court annulled the 2001 privatisation.

The company’s board under Mr Tum issued nine million new shares to the public in 2001, in a deal  ADC reckons did not meet requirements for disposal of public assets.