UK retailer cuts Kakuzi supply deal in human rights row

A fallout from human rights abuse claims against Kakuzi began to take a toll on the agricultural firm’s business yesterday after Britain's largest supermarket chain, Tesco, suspended supplies.

Tesco confirmed in an emailed response to the Business Daily that it had suspended any dealings with Kakuzi pending its own investigations into the allegations.

“Any form of human rights abuse in our supply chain is unacceptable. We have been working closely with the Ethical Trading Initiative (ETI), alongside other ETI members, to investigate this issue and ensure measures have been taken to protect workers,” Tesco said.

“However, in light of the additional allegations published over the weekend we have suspended all supply whilst we urgently investigate.”

Tesco operates over 3,961 grocery stores in the UK and Ireland, including franchise stores.

The Nairobi Securities Exchange(NSE) listed Kakuzi has been sued in the UK for alleged human rights abuses on its vast Kenyan plantations, exposing the company to the risk of hefty fines and reparations to the victims.

Through its Kent-based parent company Camellia Plc, the company has been sued over allegations of assault and sexual misconduct allegedly conducted by employees. The UK-listed company Camellia owns 50.7 percent of Kakuzi.

Law firm Leigh Day said that 79 Kenyans had launched a legal claim in the High Court in London against Camellia for alleged human rights abuses by security guards employed by Kakuzi, its Kenyan subsidiary.

Camellia employs 78,000 people worldwide and says it is the largest avocado producer in Kenya, which according to the International Trade Centre is Africa’s biggest avocado exporter. Camellia’s operations in Africa include Kakuzi (in which it owns a 50.7 percent stake), Eastern Produce Kenya, Eastern Produce Malawi, Eastern Produce Cape (South Africa) and Eastern Produce Tanzania.

The allegations, dating from 2009 to January this year, include rapes, attacks on local villagers and a man being beaten to death, Leigh Day said.

Kakuzi, however, has rejected the claims made by Leigh Day, saying it did not “condone any criminal activities or behaviour by any of its employees”.

“In the case of the tragic death of the young man highlighted in the article the matter was reported to the relevant authorities and investigations are ongoing. Kakuzi has settled with the deceased’s legal representatives as appointed by the Kenyan courts on the civil matter,” Kakuzi said in a statement. The company said it had urged the Office of the Director of Public Prosecutions (ODPP) to investigate the allegations and “take actions in accordance with the law”.

“As a responsible corporate citizen Kakuzi does not condone any criminal activities or behaviour by any of its employees and to this end we have requested the Office of the Director of Public Prosecutions to investigate the allegations of criminality and take action in accordance with the law,” it said.

Amid the fallout, Kakuzi shares at the NSE plunged by 1.3 percent to Sh380 per share by close of trading Monday from the previous session’s Sh385. Kakuzi has over the years battled various claims and charges, including allegations that it is the beneficiary of thousands of acres of land that was originally acquired illegally from locals during the colonial days.

The firm’ profit after tax for the half year to June this year jumped 11.1 percent to Sh272.8 million compared to Sh245.5 million for the same period last year.