KENYA – Limuru Tea has reported a 14 percent decline in total revenues for the first half of 2024, recording KES 52.8 million (US$409,380.05), down from KES 61.6 million (US$477,610.06) during the same period in 2023. 

The company also posted a pre-tax loss of KES 19.6 million (US$151,966.84), a significant increase compared to the pre-tax loss of KES 2.4 million (US$18,608.18) reported in the previous year. 

The decline in performance was primarily driven by adverse market prices, which led to a reduction in turnover.  

Despite the challenging market conditions, Limuru Tea managed to increase its production volume, with the first half of 2024 seeing the production of 1,929 tons of Green Leaf, which was processed into 414 tons of Black Tea.  

This represents a 26 percent increase in Made Tea volumes compared to the same period in 2023, largely due to favorable weather conditions, including high rainfall from January to March 2024, followed by the El Niño phenomenon in April and May 2024. 

However, the company faced declining prices in both local and international markets, compounded by inflationary pressures on key material costs.  

These challenges forced Limuru Tea to implement cost efficiency programs to mitigate the impact on its operations. 

The results come recently after the Competition Authority of Kenya (CAK) approved the acquisition of 98.56 percent of Lipton Teas and Infusions by UAE’s B Commodities, an affiliate of Sri Lanka-based Browns Investment Plc.  

This acquisition also includes a 51.99 percent minority stake in Limuru Tea Plc and full ownership of Lipton Teas and Infusions Rwanda Limited. 

B Commodities has committed to retaining all 9,715 employees at Lipton Teas and 405 employees at Limuru Tea.  

In June, CAK granted the company an exemption from a requirement to make an offer to acquire the remaining shares of Limuru Tea, as required under the Capital Markets Authority (CMA) takeover regulations. 

Lipton Kenya held the beneficial shareholding in Limuru Tea, hence requiring B Commodities to apply for the regulatory exemption having indicated its intention not to take over the firm. 

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