Written By | BK Mugizi
Igara Tea farmers and shareholders during the court ruling at Bushenyi High court
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BUSHENYI
A crisis at Igara Tea Factory has deepened, with former employees accusing the management of failing to pay salaries, carrying out unlawful dismissals, and mismanaging the company's finances.
The dispute has now moved to court, with shareholders and workers demanding an immediate forensic audit and a declaration on the legality of the factory's current board of directors.
Former and current employees have painted a grim picture of working conditions at the factory, citing six months of unpaid wages, the withdrawal of staff health insurance, and low salaries.
Winnie Natukunda, a former employee at the factory's main branch, said her demand for six months of salary arrears resulted in her transfer to the Buhweju branch.
"When I asked why I was being transferred when I was demanding my money, they dismissed me," Natukunda said.
"Even after stopping me from working, I am still demanding my money. They have also refused to give me my retirement letter. Whenever I go to their offices, the Human Resource Manager keeps giving me excuses."
Natukunda questioned the factory's financial status, saying tea production and sales continue, yet workers and farmers are not benefiting.
"We see a lot of tea leaving the factory for sale, but we don't know where that money goes. We believe that some people, from production staff to board members, are stealing our money," she alleged.
Her concerns were echoed by John Mbendiiho, a veteran employee who has worked at the factory for 15 years. He said workers' welfare has significantly declined over the past year.
Mbendiiho said the factory transferred about 21 workers to the Buhweju branch after they demanded payment of their salaries.
"We reported the transfers to the Labour Office in Bushenyi District, and they told us the transfers were unlawful. However, they advised us to comply and report to Buhweju or retire if we failed to do so," he said.
"We worked there for three days, and ever since we returned home, they have never paid us."
As workers complain about unpaid salaries, shareholders and tea farmers have taken the matter to court, challenging the legality of the current board of directors.
Counsel Kelvin Baryehuka, who represents the farmers, shareholders, and workers, said they petitioned the court to determine whether Igara Tea Factory has a legally constituted board.
"The board that claims to be in office is there unlawfully," Baryehuka said, adding that the respondents maintain the board is legitimate.
"We brought the matter to court so that, if there is no legally constituted board, farmers and shareholders can establish a new one in accordance with the company's procedures."
Tea farmers listening to their counsel after the court ruling
Despite the ongoing judiciary recess, during which only urgent criminal matters are ordinarily handled, the legal team successfully applied for an expedited hearing.
"Today we were fortunate because the court scheduled the judgment for July 27, 2026. We shall present evidence showing why Igara Tea Factory does not have a legally constituted board," Baryehuka said.
Willis Bashasha, the Manifesto Implementation Director in the Office of the President and a shareholder in Igara Tea Factory, said stakeholders had earlier petitioned the Uganda Registration Services Bureau (URSB), which advised them to seek a legal interpretation from the court.
Because of the court recess, the shareholders applied for a Certificate of Urgency to keep the matter active.
"The court granted us the certificate, and we shall return on July 27 for the legal interpretation as advised by URSB," Bashasha said.
"We hope the court will make a fair ruling so that we can get back to business because every success belongs to us, the tea farmers, and not to individual personalities."
Bashasha said an independent forensic audit was necessary to establish the factory's financial position and pave the way for transparent leadership.
"A forensic audit will reveal what was done properly and what went wrong so that we can have new leadership capable of moving the tea sector forward," he said.
"If we are to revive the business, we must also improve the quality of our tea, especially now that international tea prices are favourable."
The affected workers and local tea growers have appealed for government intervention to protect their investments and compel the factory management to clear the outstanding salary arrears.
The High Court in Bushenyi is expected to deliver its ruling on July 27, 2026, a decision that could determine the future leadership and governance of Igara Tea Factory.
