The Directorate of Criminal Investigations (DCI) has launched investigations into a Sh322.5 million payment made by Kenya Tea Development Agency (KTDA) Holdings to fertiliser supplier Oriole Homes Ltd, amid questions over the circumstances under which the money was approved and released.
Detectives are investigating whether the payment complied with KTDA’s internal governance procedures after documents reviewed during the inquiry reportedly indicated that several directors had raised concerns over the transaction.
The investigation comes at a time when KTDA has been under increased public scrutiny over tea farmers’ earnings, bonus payments and corporate governance.
Payment Made Months After Main Contract
According to documents under review by investigators, KTDA Holdings transferred Sh322.5 million to Oriole Homes Ltd on May 18, 2026.
Oriole Homes Ltd had previously supplied 99,000 tonnes of NPK fertiliser under a contract reportedly valued at about Sh9 billion, with deliveries completed in August 2025.
Investigators are examining events that followed the completion of the contract after Oriole Homes later sought additional compensation amounting to US$2.5 million, citing foreign exchange losses allegedly incurred during delays in implementing the agreement.
According to documents seen by investigators, the company argued that delays arising from litigation challenging the tender award affected the cost of fulfilling the contract.
Legal Advice Under Review
Part of the investigation is examining legal advice reportedly presented to the KTDA board before the payment was made.
Documents reviewed during the inquiry indicate that KTDA’s legal department advised that currency fluctuations did not qualify as force majeure under the contract and that the agreement had already been completed.
Investigators are also reviewing board records to establish how those legal opinions were considered during the decision-making process.
The DCI has not publicly announced any findings, and the investigation remains ongoing.
Board Records Form Part of Inquiry
The investigation is also focusing on board deliberations preceding the payment.
According to documents under review, a majority of directors expressed reservations about approving the additional payment.
Detectives are seeking to establish whether the final decision reflected the resolutions adopted during board and tender committee meetings.
As part of the inquiry, investigators have requested certified copies of the fertiliser contract, board minutes, tender committee records and financial documents relating to the payment.
Former and Current Officials Questioned
Several current and former KTDA officials have been asked to assist investigators.
Those contacted include former National Chairman Geoffrey Chege Kirundi, Company Secretary Esther Osoro, Legal Officer Mathew Odero, Finance official Tarsila Wanja, and Group Head of Procurement and Logistics Peter Mugai.
According to the information available, the officials have presented documents requested by investigators and are awaiting further interviews.
The DCI has not announced any charges against any individual.
Current Chairman Distances Himself
Current KTDA National Chairman Enos Njeru, who assumed office after the payment had already been processed, said the former leadership was better placed to explain the transaction.
“The best person to speak about it is the former chairman since he was the one in charge,” Njeru told journalists.
Former chairman Geoffrey Chege Kirundi has confirmed that the matter is under investigation and said he will comment after investigators conclude their work.
According to correspondence reviewed during the inquiry, Kirundi also requested that official board minutes accurately reflect his position and the legal advice presented during discussions.
Supplier Has Held Several Public Contracts
The investigation has also drawn attention to Oriole Homes Ltd, a company linked to the Sanjiu Group.
Public procurement records show the company has been awarded several government contracts in recent years across different sectors, including construction and infrastructure projects.
However, investigators have not alleged that those contracts form part of the current inquiry.
The DCI’s investigation is focused on the Sh322.5 million payment made following the completion of the KTDA fertiliser contract.
Investigation Continues
The DCI is expected to continue reviewing procurement documents, financial records and board resolutions before determining whether any laws or internal governance procedures were breached.
At this stage, no criminal charges have been announced, and investigators have not released their conclusions.
