Businesses & Financial News

Court fines five people for illegally trying to acquire tea factory in Kericho

The High Court in Kericho has fined five persons, Davis Kiplangat Mutai., Patrick Kipngetich Chepkwony, Richard K. Cheruiyot, Josphat Kigen, and Richard Kipkemoi Mibei, KShs. 200,000 each for trying to illegally take over Chelal Tea Factory Company Limited from Litein Tea Factory Company Limited.

In a suit filed by Litein Tea Factory Company and the Kenya Tea Development Agency Management Service (KTDA-MS), the Court found that the five did not have the mandate to register their own company with the name Chelal and, additionally, did not have the mandate to demand for assets of Chelal Tea Factory Company.

In its ruling, the Court stated that “To put it delicately, as one may, the acts of the 1st to 5th defendants were feared at a land grab and dispossession of Litein Tea Factory Company and its growers of their assets. It really has no basis in law or fact.”

The Court has slapped a permanent injunction on Richard Cheruiyot (a former KTDA Director who retired in 2005) and his five co-respondents.

The Registrar of Companies was also directed to de-register the illegal registration by the respondents and place the de-registration in the gazette.

At the same time, Mr. Richard Cheruiyot and his co-respondents were also slapped with the suit’s costs. They will (jointly and severally) pay Litein TFC and KTDA MS costs and expenses of the case that took five years.

Millimo Muthomi & Co Advocates represented Litein TFC and KTDA MS.

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