Written By | BK Mugizi
Igara Tea farmers and shareholders attending the court at Bushenyi High Court
Search
BUSHENYI
The High Court in Bushenyi has dismissed a petition filed by shareholders of Igara Growers Tea Factory, ruling that the matter was brought before the wrong forum.
The decision has sparked anger among thousands of tea farmers, who accuse the factory leadership of corruption and mismanagement.
Some farmers are now threatening demonstrations and appealing to President Yoweri Museveni to intervene and save one of western Uganda’s largest farmer-owned tea factories.
The petition, filed by disgruntled shareholders challenging the management and board elections at the factory, was dismissed by Justice Amos Kwizera, who ruled that the case was incompetent and should first have been handled by the Uganda Registration Services Bureau (URSB).
The judge also dismissed an accompanying application and vacated an interim order that had temporarily halted factory operations.
Gates of Igara Tea factory closed after farmers refused to given them tea
Court advises shareholders to seek remedy at URSB
While delivering the ruling, Justice Kwizera said the Companies Act grants the Registrar of Companies powers to first handle such disputes before they are escalated to court.
“Section 243(1) of the Companies Act gives the Registry of Companies powers to entertain disputes such as this one. This matter should have been referred to the Registrar instead of coming to court,” the judge ruled.
He advised the aggrieved shareholders to first exhaust remedies at the Registry before approaching the High Court on appeal.
Factory crisis deepens
The latest court battle adds to the growing crisis at Igara Growers Tea Factory, which has in recent months been rocked by leadership wrangles, mounting debt, unpaid workers, and delayed payments to farmers.
Reports indicate that the factory is struggling under a debt burden estimated at more than Shs25 billion, with liabilities owed to banks, transporters, firewood suppliers, workers, and the National Social Security Fund (NSSF).
The factory, located in Kyamuhunga Town Council, is one of the largest tea-processing plants in western Uganda and supports thousands of smallholder farmers from Bushenyi, Buhweju, Sheema, Mitooma, and Rubirizi districts.
Its troubles worsened earlier this year when workers staged a strike over four months of unpaid salaries, paralysing operations at the plant. Workers also accused management of failing to remit NSSF contributions since 2022.
Farmers accuse leaders of frustrating justice
The court ruling left many shareholders frustrated, with several accusing authorities of frustrating their efforts to seek justice.
“We went to the Registry of Companies and they referred us to court. Now the court is referring us back to the Registry. Are those who studied law playing games with us?” asked Brian Tumwiine, one of the shareholders.
Tumwiine also alleged that farmers were denied an opportunity to air their grievances during a recent annual general meeting (AGM).
“They called us for an AGM, but before it even started, police chased us away,” he claimed.
Another shareholder, Ronald Monday, questioned why leaders accused of corruption were still in office.
“As farmers, we do not understand the ruling because the former board was supposed to hand over office. Now the case has been dismissed and they continue leading the factory,” he alleged.
Leadership wrangles persist
The factory has faced persistent governance disputes over the past several years.
In October last year, an AGM meant to confirm newly elected directors was halted following a court order, triggering fresh divisions among shareholders and rival factions within the company leadership.
One faction is led by outgoing board chairperson Samuel Muhereza, while another group allied to Willis Bashasha has been demanding fresh elections and reforms in the factory’s management structure.
The prolonged wrangles have reportedly reduced farmers’ confidence, disrupted green leaf supply, and weakened factory operations.
Shareholders threaten protests
Following the dismissal, some farmers warned that they may resort to demonstrations or political mobilisation if their concerns are not addressed.
Julius Mutahunga, one of the petitioners, said shareholders were determined to stop what they described as manipulation within the factory leadership.
“We are not going to allow people who are manipulating systems to take over our factory. We may demonstrate, handle the matter politically, or even appeal,” Mutahunga warned.
Mutahunga previously cautioned that some factory machines were deteriorating due to poor management, saying the institution risked collapse if urgent action was not taken.
Some of Tea farmers during the court ruling at Bushenyi High court
Farmers appeal to Museveni
Some tea growers said the ongoing wrangles had badly affected their livelihoods and appealed to the Government for intervention.
John Baturiinwe, a farmer from Buhweju District, said many families were struggling financially due to the factory’s alleged poor management.
“We ask our Members of Parliament to take us to the President because he is the one who gave us tea seedlings. He should tell us whether to uproot our tea gardens or continue growing tea,” Baturiinwe said.
The calls for intervention mirror earlier petitions by farmers who accused rival factions within the factory of destabilising operations and hurting tea farmers’ incomes. Some farmers have reportedly started abandoning tea growing for coffee because of delayed payments and declining confidence in the factory.
Lawyers speak out on ruling
Lawyers representing the shareholders said the dismissal does not end the matter.
Counsel Calvin Baryeruka said the court only ruled on procedure and did not determine the substantive complaints raised by shareholders.
“The petitioners’ concerns regarding unfair corporate governance were not heard. The judge ruled that the procedure used was not appropriate, but that does not stop the clients from pursuing the matter further,” Baryeruka said.
He added that the legal team would first study the ruling before deciding whether to appeal or pursue other legal options.
The latest developments leave the future of Igara Growers Tea Factory hanging in uncertainty as farmers push for urgent reforms and government intervention to prevent the collapse of one of the region’s most important tea-processing institutions.
Torch Media Africa
