Kenyan tea farmers set for major leap in industry transformation
Business
By
David Njaaga
| May 07, 2024
Tea farmers affiliated with Gathuthi Tea Factory in Nyeri on a farm. [Kibata Kihu,Standard]
Kenyan tea farmers are poised for a significant leap following a partnership between Lipton Teas and Infusions and Browns Investments.
The deal, agreed upon on May 7, is expected to accelerate the transformation of the tea industry.
The transformation will involve the transfer of tea estate ownership and the global adoption of new quality, social and environmental standards.
Lipton Teas and Infusions have entered into a partnership that will result in the transfer of its tea estates in Kenya, Rwanda, and Tanzania to Browns Investments.
READ MORE
Government should address issues raised by young people without resorting to intimidation
Subaru driver in a dramatic high-speed chase after alleged hit-and-run in Nairobi
Bottled water exempted from excise duty
Kenya out to increase its participation at LA28
Initiative to upskill youth in construction sector launched
Cyril Maloba: The math teacher who refused to stop
Knec call for KCSE candidates as curtain falls on 8-4-4 education system
'A criminal act of the State,' Orengo says of Lichuma torture claims
From Kenya to Zambia: Kenyan firm wins role in school meals overhaul
'Mr Speaker Sir' freed on Sh100,000 bond in Sh41m Parliament damage case
Consequently, all tea sold by Browns worldwide will adhere to a new set of standards covering quality, social and environmental protections.
The partnership is expected to position Browns Investments as one of the world's leading tea exporters, exporting around 87 million kilograms each year.
Additionally, it will make the company one of the largest suppliers to Lipton Teas and Infusions.
The proceeds of the transaction will be reinvested into the East Africa region, aiming to drive local and industry-wide progress in areas such as skills development and climate change mitigation.
The Kenyan government has supported the companies in identifying opportunities for local communities to benefit from the partnership and future growth of the industry.
In a move to ensure community involvement, shares totalling 15 per cent of the main Kenyan operating company will be offered to the communities of Kericho and Bonnet, where the estates are situated, at a substantial discount.
"Browns is the perfect partner, with the credibility, capabilities, and scale, to work with us to raise standards in the whole tea industry," said Nathalie Roos, CEO of Lipton Teas and Infusions.
Echoing her sentiments, the CEO of Browns Investments noted, "We look forward to working hand-in-hand with Lipton Teas and Infusions and our partners to foster sustainable, responsible, and prosperous tea farming for all."
The partnership comes after President William Ruto met representatives of the two companies at State House in Nairobi where he marketed Kenyan tea as one of the best globally.
The tea industry recorded the highest export earnings ever of Sh180.57 billion last year, an increase from Sh138.09 billion recorded in 2022 and 136.59 billion in 2021.
Sub-contracting policy gap hit leather sector as Cabinet steps in with Sh5.8b support plan
A Sh5.8 billion leather value chain revamp deal has received the Cabinet's nod as the government moves to revitalise the sector currently riddled with gaps in sub-contracting.Global payment platforms turn mobile phones into SME cash registers amid rising fraud risks
Global fintechs have jumped on the mobile payment bandwagon by introducing products that are designed to expand how smartphones accept and send digital payments.The spice sisters of Kisaju: How solar tech-savvy women are securing the global herb market
Farming for European markets requires strict compliance and the ability to navigate seasonal market shifts.Kenya urged to scale AI beyond pilot projects
In agriculture, AI's greatest value lies not only in forecasting weather but also in helping governments make faster and better decisions.IM banks on communities in new entrepreneurship drive
The Predators Den is an initiative to identify and provide business support to entrepreneurs so they can position themselves to earn a decent income from resources within their communitiesMOST READ
Sub-contracting policy gap hit leather sector as Cabinet steps in with Sh5.8b support plan
ENTERPRISE