KENYA – A section of the Kipsigis clan in Kericho County, Kenya, is contesting the sale of Lipton Tea estates to Browns Investment PLC.
The Borowo sub-clan leader, Richard Langat, claims the land on which the estates reside belongs to the clan and that they were not consulted during the sale process.
Langat expressed dissatisfaction with the lack of transparency, demanding details about the sale criteria and the absence of public participation.
“We as the community cannot honour the decision taken by Lipton Tea to sell the firm to a new investor without proper consultation with the community,” he stated.
The clan is seeking 100 percent of ownership shares, citing historical land injustices and forced eviction from their ancestral land.
Langat rejected the proposed 15 percent stake offered by Browns, stating, “We want 100 per cent of ownership shares and not 15 per cent as proposed by the new investor.”
He further criticized the lack of public participation regarding the 15 percent community ownership proposal. “There was no public participation on 15 per cent shares to the local community,” Langat said.
The Borowo leader views the sale as an extension of historical injustices faced by native landowners at the hands of multinational tea companies.
Lipton, on the other hand, maintains it has allocated a 15 percent stake in the Kenyan operation to the local community.
The company emphasized government support in identifying these benefits for the community. “The government of Kenya has supported the companies in identifying opportunities for local communities to benefit from the partnership and future growth of the industry,” a statement from Lipton reads.
The statement further details the discounted share offer aimed at facilitating “accessible communal equity and mutually aligned economic participation” for the Kericho and Bomet communities.
CVC Capital Partners, the current owner of Lipton Teas and Infusions, acquired the estates from Unilever’s tea division in 2021
Recently, Lipton claims to have addressed allegations of sexual abuse, emphasizing that the agreement with Browns necessitates continued adherence to safe practices.
“Developed together with producers across East Africa, Lipton Teas and Infusion have established a series of rigorous standards that span critical careers of tea quality, human rights, climate mitigations and nature protection,” a joint statement reads.
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