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Business

Residents Raise Issues Prior to Tea Estate's Impending Sale

Residents Raise Issues Prior to Tea Estate's Impending Sale
Residents Raise Issues Prior to Tea Estate's Impending Sale

The recent acquisition of Lipton Teas and Infusions (formerly Ekaterra) estates by Sri Lankan firm Browns Investments Plc has reignited long-standing disputes and unresolved issues with the local community in the South Rift region of Kenya.

This transition of ownership has brought to the forefront concerns related to historical injustices, land ownership, labour rights, and mechanization-induced layoffs that have plagued the region for decades. One of the key issues at the heart of the controversy is the alleged non-compliance by the former owners, Ekaterra, with rulings issued by the National Lands Commission (NLC) regarding the resurveying of land occupied by the company. The NLC had previously recommended resurveying the land to address land-related disputes and promote fairness, but there have been allegations that Ekaterra failed to adhere to these rulings.

The county governments of Kericho and Bomet have also raised their voices in this matter, demanding transparency in lease agreements and an increase in land rates. They are advocating for a larger share of the community endowment fund resulting from the sale, with calls to increase the initially set aside 15 per cent stake for the local community. The county governments recognize that the existing Sh1 billion endowment fund is insufficient and are seeking community input to ensure a more equitable distribution of benefits.

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Local cooperative societies, represented by Sinendet Cooperative Society, a consortium of more than 10 societies, have expressed dissatisfaction with the sale, arguing that it lacks transparency and disproportionately favors the multinational company. Their concerns highlight the need for a fair and inclusive process that considers the interests of all stakeholders. In response to these mounting concerns, Mr Bernard Langat, speaking on behalf of the local community, has revealed plans to challenge the sale in court.

The Competition Authority and the United Nations Human Rights Council are also involved in this process to protect the rights of local communities affected by the acquisition. To facilitate discussions on the community's stake in the sale, a recent meeting at Ekaterra's International Training Centre in Kericho brought together key leaders, including governors Hillary Barchok (Bomet) and Erick Mutai (Kericho), and Kericho senators Aaron Cheruiyot and Hillary Sigei. This meeting led to the formation of a committee tasked with navigating the complexities of the situation and ensuring that the local community's interests are adequately represented.

Senator Aaron Cheruiyot believes that there is still room for negotiation before the Competition Authority approves the deal, providing an opportunity for the local community to secure a better package. Furthermore, a petition filed at the Bomet County Assembly by members of the Kipsigis community emphasizes the need for the land to revert to the county governments, held in trust for the benefit of the locals.

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Residents Raise Issues Prior to Tea Estate's Impending Sale | Mwakilishi.com