Kiru Tea Factory Company Limited has filed an application in the High Court to be added as a party to a constitutional petition initiated by Citibank Kenya. The petition aims to halt a police investigation by the Directorate of Criminal Investigations (DCI) into the approval and disbursement of a $2.02 million (Sh261 million) loan.

Managed by the Kenya Tea Development Agency (KTDA), Kiru Tea Factory says it was excluded from the initial court proceedings that temporarily stopped the DCI probe. The factory, which represents over 8,000 smallholder tea farmers in Murang'a County, argues that since it lodged the initial complaint triggering the investigation, it should be heard before any decision is made on whether the probe can continue.

Background of the Loan Dispute

Citibank moved to court in June, claiming the DCI was unlawfully criminalising a commercial lending decision linked to the loan given to Kiru Tea Factory. The bank contends the investigation involves vague allegations of "negligently accepting a credit application," which it asserts is not recognised under criminal law.

However, Kiru Tea Factory maintains that the loan, which it states was neither authorised nor approved by its board, is at the core of the dispute. The factory’s directors commissioned audits and reviewed documents before reporting the matter to the DCI, alleging the loan was obtained without lawful authority and that the funds did not benefit the company.

Legal Arguments and Interests

  • Kiru Tea Factory: Claims the interim court orders issued in June affected its rights without allowing it to participate in the case. It seeks to protect the interests of its farmers who ultimately repaid the loan.
  • Citibank: Argues the investigation criminalises routine banking operations and violates constitutional protections, with summons issued against its Kenya CEO.
  • Investigation Scope: The DCI is probing how the loan was procured, the authorisation of corporate documents used, and the ultimate beneficiaries of the funds.

Kiru’s legal team stresses that the factory has a direct constitutional interest given that the petition aims to prevent investigations that arose from its complaint. The factory wants the probe to proceed to establish the facts surrounding the loan.

The case is scheduled for hearing on September 17.