abusesaffiliationarrow-downarrow-leftarrow-rightarrow-upattack-typeburgerchevron-downchevron-leftchevron-rightchevron-upClock iconclosedeletedevelopment-povertydiscriminationdollardownloademailenvironmentexternal-linkfacebookfiltergenderglobegroupshealthC4067174-3DD9-4B9E-AD64-284FDAAE6338@1xinformation-outlineinformationinstagraminvestment-trade-globalisationissueslabourlanguagesShapeCombined Shapeline, chart, up, arrow, graphLinkedInlocationmap-pinminusnewsorganisationotheroverviewpluspreviewArtboard 185profilerefreshIconnewssearchsecurityPathStock downStock steadyStock uptagticktooltiptwitteruniversalityweb
Article

3 Apr 2024

Author:
Financial Times

CVC accused of ignoring Kenyan co-operatives in tea estates sale

A consortium of co-operatives in Kenya claims it was ignored after expressing an interest to buy the Kenyan tea estates that private equity group CVC purchased from Unilever less than three years ago.

The group, whose combined membership exceeds 340,000, wrote to the board of CVC-owned Lipton Teas and Infusions in February expressing an interest in purchasing the estates on behalf of the local community.

[...]

The consortium wants to buy the Lipton Kenya estates ... VC acquired the estates as part of its €4.5bn purchase of Unilever’s tea division, then named Ekaterra, in 2021. Private equity firms Advent International and Carlyle had walked away from buying the business because of concerns about the working conditions on its plantations.

Questions over the community’s right to the land is a new area of environmental, social and governance concern for CVC.

The Kericho plantation had a history of violence and sexual harassment allegations before CVC acquired it....

Kenneth Langat, a lawyer representing the consortium, told the FT that “there has been no courtesy of a response” to their letter ...

CVC and Lipton declined to comment.

In its letter, the consortium pointed out that as part of its ESG commitments, Lipton was committed to the “free, prior and informed consent” of local communities with regard to the use of and transfers of land.

“Acquiring the Kenya tea estates at a fair valuation would restore ownership of the lands to the descendants of the indigenous residents of the Rift Valley Highlands and address the ongoing debate in Kenya in respect of historical land injustices,” wrote the co-op group.

In the early 20th century, the British army evicted members of the Kipsigis and Talai clans from land in Kericho to grow crops there. In 2019, Kenya’s National Land Commission ruled that the land had been unlawfully seized.

Last year tea and coffee company Finlays sold its tea estates, which neighbour Lipton’s, to Sri Lankan group Browns Investments. Browns and Finlays agreed to offer 15 per cent of shares for public sale in the company through a local co-operative.

[...]

In February, alongside Kenyan President William Samoei Ruto, the company inaugurated a new tea academy. “The academy reinforces our commitment to the Kenyan tea industry and the steps it is taking to raise standards in terms of quality, as well as human and environmental protections,” said Lipton chief executive Nathalie Roos at the time.

Timeline