Firms’ bid to join Sh87bn suit granted

What you need to know:

  • This comes as the Council of Governors and 10,000 farmers sought to be enjoined in the case through Senior Counsel Tom Ojienda. Their applications will be considered on March 23.
  • The judge also gave seven days to the Agriculture, Food and Fisheries Authority to furnish Prof Chepkwony with the Tea Industry Status Report of May 2014.
  • In the case, Prof Chepkwony wants the court to compel the tea agency to return Sh87 billion to farmers in western Rift, claiming they had been charged twice for management services.

Fifty-four tea factories were on Monday enjoined in a case filed by Kericho Governor Paul Chepkwony, seeking a refund of Sh87 billion for farmers.

Kericho High Court Resident Judge Hedwig Ong’udi allowed an application by factories that are managed by the Kenya Tea Development Agency because parties in the case are not opposed to their inclusion.

This comes as the Council of Governors and 10,000 farmers sought to be enjoined in the case through Senior Counsel Tom Ojienda. Their applications will be considered on March 23.

During yesterday’s mention, Justice Ong’udi was concerned that Prof Chepkwony had not served all the respondents with the petition papers ahead of yesterday’s date.

She directed him to ensure that the suit papers, as well as all the other documents his team intends to use in the case, are served on all the other parties in the next 14 days.

TEA REPORT

The judge also gave seven days to the Agriculture, Food and Fisheries Authority to furnish Prof Chepkwony with the Tea Industry Status Report of May 2014.

The governor had told the court he needed the report to build up his case.

“Further, any intended applications should be filed and served within seven days and the responses filed. The said applications, if filed, will be dealt with on the said date,” directed the judge.

In the case, Prof Chepkwony wants the court to compel the tea agency to return Sh87 billion to farmers in western Rift, claiming they had been charged twice for management services.

Through his lawyer, Mr Peter Wanyama, the governor wants the court to declare unlawful the levying of agricultural produce cess and the ad valorem tax (a tax based on the value of real estate or personal property) on farmers.

Prof Chepkwony argues that the Agriculture Produce Cess is charged at a rate of one per cent of the gross value of the green tea leaf, while the ad valorem tax is calculated at one per cent of produce at the point of export.