Counties

Low land rates for tea multinationals queried

TEA

Tea farms run by multinationals in Bomet County cover about 100,000 acres. FILE PHOTO | NMG

Could multinational tea companies be paying a paltry 50 cents per acre per year for land leased from the county government of Bomet?

This is one of the pertinent questions that two residents, Kevin Kipng’etich Kalya and Patrick Cheruiyot Koech, are demanding answers to from the county government.

Through their lawyer Bett Sigey of Sigey and Company Advocates, the two have tasked the county government to provide a breakdown of the annual rent remittance by three tea estates namely Unilever, James Finlay and Sotik Tea.

“Our clients, being residents of Bomet County and tea farmers for that matter, wish to know the annual rental remittance of the three estates to the county government and for which purpose the county uses the proceeds,” the law firm states in a letter to the Bomet County secretary.

Titled Request for Information Under Article 35 of the Constitution in Relation to Tea Estates, the letter seeks to know the nature of agreements between the county and the three tea estates, whether the leases are viable or not, how long they last and whether the rates are reasonable or not.

“The information in our possession seems to indicate that the tea estates submit 50 cents per acre annually.

“This information, if true, would amount to exploitation on a colossal proportion,” says the letter. Records on the acreage of land held by the multinationals have been hidden from the public for long in what locals said is a bid to hide the vastness of the land and hence pay less for leasing.

However, estimates put the acreage at about 100,000 in Bomet alone.

READ: Tea companies cut investments over land lease fears

The lawyer wants the Dr Joyce Laboso-led administration to provide answers to the questions as well as copies of relevant documents — including lease agreements and licences — within seven days, failure to which he will go to court.

“The information in issue (should) be supplied to us not later than seven days from the date of receipt of the letter, failure to which we shall move to court without further reference to you,” the letter states.

In a phone interview with the Business Daily the lawyer said that the county government, being a public institution, has the responsibility of publicising the transactions and not the tea companies, which are private tenants.

“The information we have that the estates pay 50 cents per acre per year is unreliable. That is why we want official details. But what we know is that the amount they pay is not equitable value but a raw deal.

“We will process the information received and see whether their contracts should be renewed or they should be kicked out,” said Mr Sigey.

“Take further notice that non-compliance would attract unnecessary risk as to cost. May wise counsel prevail,” the lawyers’ letter concludes.