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Revealed: Multinational tea companies pay Sh254 for land leases

 

Multinational tea companies in the South Rift region pay a paltry Sh254 per acre annually for land leases under terms negotiated before Kenya's independence, it has been revealed.

This is why counties in the region are pushing for the fees to be raised in line with prevailing market rates. Governors in the South Rift want the companies to pay Sh5,000 per acre annually.

Kericho Governor Erick Mutai revealed that the county receives Sh47 million annually as revenue from the multinationals.

"The prevailing market rate is Sh7,000 per acre per year but the multinationals are paying Sh254 per acre. We want the companies to pay at least Sh5,000 per acre," Dr Mutai said.

He added: "This is not mere political rhetoric as campaigns are behind us. I'm speaking from a point of knowledge."

Ekaterra Plc, James Finlay, Sasini, Sotik Highlands Tea, Eastern Produce Tea Company of Kenya, and Williamson Tea are some of the multinationals operating in the region.

In a past interview, Mr Simeon Hutchinson, the managing director of James Finlay, said the firm paid Sh400 per acre annually for land leases.

"The claim that we do not pay market rates as the land lease is a lie. As per our records, we pay Sh400 per acre annually," said Mr Hutchinson.

Mechanisation was not reversible, he said, adding that "it does not make economic sense".

Former Kericho governor Paul Chepkwony said the companies paid Sh300 for leases per acre annually, and added that this figure should be increased.

Dr Mutai said fully deploying tea-plucking machines would lead to massive job cuts and increase poverty in the region.

The renewal of land leases for the companies is shrouded in mystery, as counties were not consulted and the views of the public were not sought.

Dr Mutai said the county was consulting with the national government through the National Land Commission (NLC) on plans to annex 1,000 acres of land from multinationals for the expansion of Kericho town.

"The land to be annexed is the one that is on lease to James Finlay company, which will be done under compulsory land acquisition,” Dr Mutai said on Citizen TV on Wednesday morning. 

“We are seeking to create industrial parks, an airport, residential housing units, a showground and other amenities that would spur economic growth in Kericho to the benefit of the people."

He claimed the mechanisation issue was swept under the carpet by previous administrations.

Tension has been rising in the region in the past three weeks, with 10 tea-plucking machines torched at the Tagabi estate, owned by Ekaterra, by rowdy youths who wanted the machines removed.

A police officer in Belgut sub-county was attacked by rowdy youths, who were found illegally harvesting green leaves from tea estates.

Bomet County Commissioner Ahmed Omar warned the youths they would be arrested if they invaded tea farms.

Governors Stephen Sang (Nandi) and Hillary Barchok (Bomet) have also voiced their concerns about land leases, revenue collection, mechanisation and the sacking of employees in the last two decades.

Cotu secretary-general Francis Atwoli has claimed that 200,000 jobs were lost in the sector to mechanisation.

Some of the multinationals have threatened to relocate to Rwanda if the campaign against mechanization continues.     BY DAILY NATION   

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