KENYA – The sale of Lipton Teas and Infusions estates in Kenya’s South Rift region to Sri Lanka-based Browns Investments Plc has been contested by the Kipsigis Community Clan.
The local group, which represents approximately 1.5 million Kipsigis people, argues that the sale of the tea estates in Kericho and Bomet counties was executed without the “free, prior and informed consent” (FPIC) of the affected local community.
The clan’s organization claims that the tea estates in question are situated on “disputed land” that was allegedly seized by force from the local community.
The organization is challenging the transaction based on the assertion that the land was taken between 1902 and 1963 by the British Colonial government and subsequently allocated to European settlers.
The organisation said: “We have engaged legal counsel and will seek to protect our rights with the relevant authorities following the UN Guiding Principles for Business & Human Rights, the UN Declaration on the Rights of Indigenous Peoples and other applicable laws/principles. At the same time, we wish to bring this to the immediate attention of Lipton’s customers, consumers and employees.”
The controversy follows a recent disclosure by Browns Investments Plc, which announced on August 2, 2024, that it completed the acquisition of 98.94 percent shares in Lipton Teas and Infusions Kenya Plc on July 30, 2024.
The acquisition also includes a 51.99 minority stake in Limuru Tea Plc and full ownership of Lipton Teas and Infusions Rwanda Limited, executed through Browns Investments’ wholly owned subsidiary, B Commodities ME FZE, based in the United Arab Emirates.
Despite previous offers from the local community to purchase the estates through cooperative societies, these proposals were reportedly not considered fairly.
“We have evidence to prove that the local community’s offer to acquire the tea estate was not fairly considered, was not given access to the sale process and was not transparently engaged with throughout,” it further claimed.
The acquisition, which has been approved by the Competition Authority of Kenya (CAK), positions the company as one of the world’s largest tea producers, with the capacity to process 87 million kilograms of tea annually.
The acquisition includes 11 plantations and eight factories across Kericho, Bomet, and Kiambu counties.
According to CAK, Browns Investments’ has committed to retaining all 9,715 employees at Lipton Teas and 405 employees at Limuru Tea.
Additionally, a 15 percent stake in the business has been allocated to the local community through a Community Welfare Trust, alongside a KES1 billion (US$7.8M) fund for development initiatives in the region.
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