KTDA Halts Staff Travel and Training to Reinforce Governance and Cut Costs
The Kenya Tea Development Agency (KTDA) has suspended all staff travel, off-site meetings, and training programs across its subsidiaries in a sweeping move aimed at tightening governance and reducing operational expenses.
In an internal memo dated October 21, the KTDA management said the directive aligns with the group’s ongoing focus on governance, compliance, and cost optimization. The memo was addressed to all general managers, subsidiary heads, and department heads within the organization.
“All staff travel is suspended until further notice. No travel—domestic or international—for any business-related purpose shall occur without explicit prior written authorization from the Holdings Board through the Group CEO,” the memo stated.
The agency further instructed that no external meetings or workshops—including those held at hotels or factory sites—will be allowed unless they receive formal written approval from the Holdings Board, following a recommendation by the Group CEO.
Additionally, KTDA ordered the immediate suspension of all training activities, whether planned, ongoing, or upcoming, unless explicitly cleared by the CEO.
“This directive applies to all employees across all functions and levels. The only exceptions apply to operationally critical roles that must be pre-approved in writing by the Group CEO,” the memo read.
Department and subsidiary heads have been tasked with ensuring immediate communication and compliance with the directive across all KTDA business units.
Government Orders Audit of Tea Factory Loans
The KTDA restrictions come as the Kenyan government initiates a comprehensive audit of loans taken by tea factories managed under the agency. This follows growing concerns among farmers over low bonus payments declared for the current financial year.
Principal Secretary for Agriculture, Kipronoh Ronoh, said the ministry had received numerous complaints from tea growers regarding reduced earnings, prompting an in-depth review of the financial management practices in KTDA-managed factories.
“These concerns have necessitated a detailed review of financial obligations and management practices within the factories,” said Ronoh.
In a letter to Tea Board of Kenya CEO Willy Mutai, the PS directed the board to establish the total loan amounts borrowed by each factory, how the funds were utilized, the terms and conditions, and the current outstanding balances.
The Tea Board has been instructed to begin the audit immediately and submit a detailed report to the Ministry of Agriculture within 14 days.
“The findings will help the Ministry assess the financial sustainability of the factories and design corrective measures to address the challenges currently facing the tea sub-sector,” Ronoh added.
Industry Outlook
The KTDA’s latest measures mark one of the most stringent governance and cost-control actions in recent years. With the government’s audit underway, both the agency and the Tea Board are under pressure to restore transparency, improve farmer earnings, and rebuild trust in Kenya’s tea industry, one of the country’s top foreign exchange earners.
