Time flies with great content! Renew in to keep enjoying all our premium content.
Prime
Riots pluck Sh170m from us, say tea firms
A valiant tea plucking machine commandeered by youths and driven to Brooke trading centre in the outskirts of Kericho town where it was later torched by the roadside on May 22, 2023. PHOTOS | VITALIS KIMUTAI | NMG
Large-scale tea producers in Kericho and Bomet counties have lost Sh170 million in the ongoing violence against multinationals by armed groups who are opposed to the introduction of plucking machines.
Through their umbrella body, the Kenya Tea Growers Association (KTGA), the companies said the loss translates to Sh50 million in the burning of tea harvesting machines by violent youths who claim that mechanising plucking has resulted in job losses.
The umbrella body for multinational and local private tea companies said they had also lost Sh120 million in 4.5 million kilogrammes of green leaf plucked from the farm illegally and stolen by the irate youths.
“The value of compromised assets as a result of these security challenges is estimated at approximately Sh50 million and an additional Sh120 million in 4.5 million kilos of green leaf,” said KTGA chairman Silas Njibwakale in a statement on Tuesday.
He said due to the ongoing unrest in the region, Ekaterra Tea Plc would suspend operations in Kericho and Bomet to protect their workers.
The firm said during the suspension of their operations in the area, 16,000 employees of the multinational tea company would not report to work until the government and other stakeholders address the security situation.
In a show of solidarity, large tea producers operating in Kericho, Bomet, Nyamira and Nandi counties will also scale down their operations until adequate security measures are in place.
Mr Njibwakale further added that more engagement with the technical working committee on the recommendation of the Kericho County task force on large-scale tea producers and other stakeholders in the tea sub-sector is also suspended until their security concerns are addressed.
The association said the burning of tea plucking machines, tractors, and police vehicles, and injuries to workers and police officers have not only endangered lives but have also hampered the business operations of the various firms involved.
“Large-scale tea producers are committed to the long-term prosperity of the tea industry and the communities it supports. However, the prevailing security crisis demands immediate attention and comprehensive solutions,” said Mr Njibwakale.
Multinational tea firms have defended the use of tea harvesting machines, saying it would reduce the cost of production and enable them to remain afloat in the competitive global tea market.
However, workers’ unions have opposed the introduction of tea harvesting machines, saying it will result in job losses.
Tea is one of Kenya’s leading export earners. Last year, exports from the green leaf stood at Sh163 billion, up from Sh130 billion in 2021 or an increase of 25 percent.
The volume of tea stood at 533,300 tonnes last year with an estimated value worth Sh156.7 billion.
The total area under tea was 250,800 hectares split between smallholders and estates.
