Disobeying court order earns KTDA chiefs Sh2.4m fine

Kenya Tea Development Agency CEO Lerionka Tiampati. FILE PHOTO | NMG

What you need to know:

  • Six KTDA directors ordered to pay a fine of Sh400,000 each for disobeying a court order two years ago.
  • The court granted them seven days to pay after their lawyer Waweru Gatonye said they were not a flight risk.

Six directors of Kenya Tea Development Agency (KTDA) were on Thursday ordered to pay a fine of Sh400,000 each for disobeying a court order two years ago.

Sentencing them, three Court of Appeal judges said the six including CEO Lerionka Tiampati, Francis Macharia and Company Secretary John Kennedy Omanga, will serve seven months in civil jail should they fail to pay the fine.

The court granted them seven days to pay after their lawyer Waweru Gatonye said they were not a flight risk. Stephen Githiga, Eston Gakunju and Mr Peter Kinyua were also fined.

Justices William Ouko, Fatuma Sichale and Otieno-Odek found the directors guilty of contempt of court after holding an annual general meeting for Kiru Tea Factory in Murang’a County despite a court order.

While sentencing them, the judges said obeying court orders is paramount and it is through it that justice and fairness is served and dignity of the court respected.

The judges further said there are mechanisms in every company for removing directors and not resorting to uncivil procedures.

The judges had earlier rejected an application by the directors, seeking to stop the sentencing, arguing that they had filed an appeal to the Supreme Court. Through lawyer Benson Milimo, the directors said the appeal had been certified urgent and the file taken to the Chief Justice David Maraga for directions.

Parallel proceedings

The judges, however, dismissed the application, saying they cannot sanction parallel proceedings and the Supreme Court had not issued orders stopping the proceedings. They said the application seems not to have been made in good faith, but with plans to stall the case.

The court faulted them for interfering with the leadership and management of the 8,000-member tea factory by going ahead with elections, yet they had been stopped and rival parties urged to maintain the status quo.

The tea factory has been plagued by fights.

The group led by Chege Kirundi and vice-chairman John Ngari Kariri and auditor Christopher Mwangi accused their rivals of trying to paralyse the operations of the firm at the behest of powerful individuals.

They accused KTDA directors of orchestrating the removal of Mr Kirundi and company secretary Bernard Kiragu on November 27, 2017, against express court orders.

Mr Kirundi and his allies had obtained an injunction blocking the Kenya Tea Development Agency Holdings and KTDA Management Services from interfering with the leadership of the factory.

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