***Kenyan investors back out as local politics, shady loans, choke Mambilla Beverages Limited
By Ben Adaji, Jalingo
Once the pride of Taraba State and a symbol of self-reliance on the majestic Mambilla Plateau, Highland Tea is now battling for its life—crippled by debts, suffocated by political interference, and rejected by potential foreign investors.
At the heart of this unfolding crisis is Mambilla Beverages Limited, the state-owned producer of Highland Tea, whose market value has plummeted from a robust ₦13 billion to a paltry ₦3 billion, amid concerns over obsolete equipment, shrinking plantations, and rising internal divisions.
While the fields are still green and the aroma of fresh tea occasionally wafts through the Kakara hills, insiders say the soul of the company is fading fast—eroded by debt guarantees running into over ₦23 billion and hijacked by a political clique allegedly more interested in patronage than production.
“We used to declare ₦50 million dividends yearly. Today, we can’t even meet supply without demanding advance payments from customers,” a senior staffer lamented, speaking anonymously for fear of reprisals.
From National Treasure to Political Playground
The decline began when the former administration under Governor Darius Ishaku attempted to privatize the company, inviting private investors to buy majority shares while the state retained a minority stake. But that plan was torpedoed by powerful Mambilla elites who claimed the estate was their “share of the national cake” and must remain under their control.
Ironically, one of the fiercest opponents of privatization, Barrister Gebon Kataps, is now Secretary to the State Government (SSG) and—by precedent—chairman of the company’s board. Since his appointment by Governor Agbu Kefas, observers say the company has become the unofficial fiefdom of the Mbamga arm of the Mambilla political class, with appointments, contracts, and decisions allegedly skewed along ethnic lines.
“About 85% of the workforce is drawn from one ethnic group. Locals from Kakara, where the company is located, are being treated like strangers in their own land,” said a company insider.
State-Backed Loans and Questionable Guarantees
Even more troubling is the company’s deepening debt burden. In one instance, the government used Mambilla Beverages as collateral to secure a ₦5 billion loan for a rice production feasibility study. In another, it backed a €10 million loan for agricultural implements from the Czech Republic.
Observers say these loans have little or no direct benefit to the tea business, and the company’s involvement in them was purely political. “We were never consulted. We just got dragged in,” said a source close to the management.
Kenyan Investors Walk Away
In a desperate move to salvage the company, the state recently invited Kipchimchim Group, a leading Kenyan tea conglomerate owned by billionaire Mzee Ngetich (Chepsetyon), to take over Highland Tea.
The investors visited the state, toured the Kakara estate, and attended the Taraba Investment Summit. But no deal was reached.
“They were ready to invest. But once they realised it was a state-owned company with no clear structure or autonomy—and no proper working documents—they walked away,” a source close to the negotiations told National Update.
Leadership and Interference
To consolidate control, the SSG reportedly orchestrated the deployment of Dr. Abubakar Hamidu Kara, a university lecturer, to the company as Human Resources Head. He has since taken over as Acting Managing Director, replacing the former CEO.
“It’s now total control—appointments, operations, even finances. And the same people who fought privatization are bleeding the company dry,” said another staffer.
Dr. Kara confirmed the company is still in production but admitted it’s struggling with machinery that’s over 40 years old. He praised the government for sourcing spare parts from China, India, and Argentina but deflected questions on finances, referring inquiries to the SSG.
Despite several attempts, Barrister Kataps failed to respond to interview requests. After weeks of unanswered calls and messages, he eventually promised to call back—but never did.
Calls for Reform Ignored
Years ago, a government committee led by Obadiah Ando and former Head of Service, Danladi Kifasi, recommended ending the tradition of letting sitting SSGs chair the board. They urged the appointment of a neutral business expert to shield the company from political interference.
That recommendation remains unimplemented.
Meanwhile, investigations by National Update into allegations of funds misappropriation—running into billions of naira—are ongoing.
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