Thousands of tea workers may lose jobs in row over land lease

Thousands of tea company workers face the sack after county governments threatened not to renew land leases for multinationals.

The Kenya Plantation and Agricultural Workers Union (KPAWU) yesterday asked the national government to intervene in a standoff between the tea firms and devolved units over the renewal of leases.

County governments in tea growing regions have set tough conditions for renewal of leases including titles to ownership of the companies and suspension of use of tea plucking machines.

The tea companies have in turn shelved new investment unless the land leases are renewed and use of plucking machines allowed to cut costs.

KPAWU Nandi Secretary Eliakim Ochieng yesterday said more than 50,000 workers were likely to be sent home.

“Most multinationals fast-tracked the introduction of plucking machines after realising that county governments were unwilling to renew their leases, a move that will result in job losses,” he said.

The majority of tea companies are in Nandi, Kericho, Bomet, Murang’a and Kiambu counties.

Kenya Tea Growers Chief Executive Apollio Kiarie said the companies were withholding investments estimated at millions of shillings.

“It is unfair for county governments not to renew the leases considering the sector is a major foreign exchange earner,” said Mr Kiarie last week.

According to Agriculture Permanent Secretary Richard Lesiyambe, tea farmers will be exempted from paying levies and cess from July. He said the waiver was meant to motivate farmers to overcome challenges of climate change that has led to a drop in production.

Unpredictable weather and depressed global prices have resulted in heavy losses, with most farmers turning to eucalyptus tree which they consider more profitable than maize and wheat.

“Massive layoffs might not be unavoidable to cut down on production costs like pruning, weeding and picking of green tea leaves,” said Mr David Lang ‘at from Saos, who has ventured into growing eucalyptus trees which fetch better prices owing to increased demand for wood and wood products.

A report by the Kenya Forestry Service indicates an increase in trade in tree products.