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Kericho Governor Erick Mutai has demanded that Browns Plantation clarify the status of a Sh1 billion fund and a 15 per cent shareholding, set to benefit local communities, following the company’s acquisition of a tea estate from Lipton Tea.
Speaking at his office in Kericho, Dr Mutai stated that the multinational tea firm still has unresolved issues with residents that must be addressed openly.
“We have an outstanding issue with the multinational tea estate. When Browns Plantation took over, they indicated they were planning to offload 15 per cent of its shares to the local community, but to date, we do not know who owns that stake,” said the governor.
He revealed that he has formally written to the company demanding full disclosure of the beneficiaries of the shareholding.
“I have written to the company to explain who owns the 15 per cent and provide their names. If these are companies, we need their details, including CR12 documents, so that we clearly understand who the actual owners are,” he added.
The governor also expressed concern over a Sh1 billion pledge intended for community welfare in Kericho and neighbouring Bomet County. He pointed out that, two years after the pledge was made, there is no evidence that the funds have been received or used.
“The company had pledged to give Sh1 billion to the local community, but two years down the line, neither Kericho nor Bomet counties have received the money,” he said.
Mutai urged Browns Plantation to return to negotiations and engage the community with sincerity.
“We invite them back to the negotiation table, and I hope that this time they will come in good faith and work to support the residents of Kericho and Bomet counties,” he said.
The agreement between the multinational tea companies and local stakeholders outlined plans to establish a Sh1 billion welfare trust fund to improve livelihoods in the two counties.
Additionally, the 15 per cent stake was meant to give local communities direct ownership interest in the plantation. The shares were to be managed through a locally based entity, such as the Kipsigis Highlands Cooperative Society, ensuring residents benefit from the tea estate’s operations.
This initiative was also seen as a step towards resolving longstanding land and welfare issues while fostering a more inclusive relationship between investors and host communities.
However, the current lack of clarity over both shareholding and pledged funds now risks reigniting tensions, with county leaders demanding accountability and transparency from the multinational firm.
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Kericho Governor Erick Mutai has demanded that Browns Plantation clarify the status of a Sh1 billion fund and a 15 per cent shareholding, set to benefit local communities, following the company’s acquisition of a tea estate from Lipton Tea.
Speaking at his office in Kericho, Dr Mutai stated that the multinational tea firm still has unresolved issues with residents that must be addressed openly.
“We have an outstanding issue with the multinational tea estate. When Browns Plantation took over, they indicated they were planning to offload 15 per cent of its shares to the local community, but to date, we do not know who owns that stake,” said the governor.
He revealed that he has formally written to the company demanding full disclosure of the beneficiaries of the shareholding.
“I have written to the company to explain who owns the 15 per cent and provide their names. If these are companies, we need their details, including CR12 documents, so that we clearly understand who the actual owners are,” he added.
The governor also expressed concern over a Sh1 billion pledge intended for community welfare in Kericho and neighbouring Bomet County. He pointed out that, two years after the pledge was made, there is no evidence that the
funds have been received or used
.
“The company had pledged to give Sh1 billion to the local community, but two years down the line, neither Kericho nor Bomet counties have received the money,” he said.
Mutai urged Browns Plantation to return to negotiations and engage the community with sincerity.
“We invite them back to the negotiation table, and I hope that this time they will come in good faith and work to support the residents of Kericho and Bomet counties,” he said.
The agreement between the multinational tea companies and local stakeholders outlined plans to establish a Sh1 billion welfare trust fund to improve livelihoods in the two counties.
Additionally, the 15 per cent stake was meant to give local communities direct ownership interest in the plantation. The shares were to be managed through a locally based entity, such as the Kipsigis Highlands Cooperative Society, ensuring residents benefit from the tea estate’s operations.
This initiative was also seen as a step towards resolving
longstanding land and welfare issues
while fostering a more inclusive relationship between investors and host communities.
However, the current lack of clarity over both shareholding and pledged funds now risks reigniting tensions, with county leaders demanding accountability and transparency from the multinational firm.
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By Nikko Tanui