Munya explains Mombasa tea auction raid

Agriculture Cabinet Secretary Peter Munya. FILE PHOTO | NMG

What you need to know:

  • Agriculture Secretary Peter Munya said the raid was extended to the auction because KTDA is a major player controlling up to 10 per cent of the total purchases.
  • The agency through its Chai Trading subsidiary buys and sells teas of all origins from the Mombasa auction, as well as conducts direct sales for its beverage.

Detectives raided the Mombasa tea auction in search of dealings with the Kenya Tea Development Agency (KTDA) that is under probe for price manipulation, insider trading and wastefulness, the government has revealed.

Executive Order Number Three by President Uhuru Kenyatta had only issued a directive to Attorney-General to conduct an inquiry into the alleged statutory and regulatory breaches by KTDA, setting the stage for the raid by detectives from the Directorate of Criminal Investigations.

Agriculture Peter Munya said the raid was extended to the auction because KTDA is a major player controlling up to 10 per cent of the total purchases.

The agency through its Chai Trading subsidiary buys and sells teas of all origins from the Mombasa auction, as well as conducts direct sales for its beverage.

The subsidiary bids for tea from other private factory offers, trading in both straight-line teas (unblended) and blended types.

The Agriculture ministry, through the new regulations last year, banned direct sales of tea to overseas market.

However, the stakeholders moved to court to stop the implementation, with the court stopping the directive temporarily.

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