Multinational tea firms to establish Sh1b welfare fund for residents

A farmer picks tea. Welfare trust fund to benefit communities in Bomet and Kericho counties. [File, Standard]

Multinational tea companies plan to establish a Sh1 billion welfare trust fund for communities in Bomet and Kericho counties.

This charitable trust is funded through an endowment fund from Lipton Teas, Infusions, and Browns Investments.

Lipton Teas and Infusions CEO Pierre Laubies, said the long-term success of tea-growing areas depends on the prosperity of the estates and the surrounding communities.

"Our partnership with Browns Investments ensures significant investment in local social needs, making it essential that the voices of potential beneficiaries are heard. This community needs assessment is a crucial step in guiding the trust's work," he said.

Browns Investments Chief Executive Director Kamantha Amarasekera said: "We are committed to the sustainable development of both the tea estates and their neighbouring communities. Our collaboration with Lipton Teas and Infusions and the establishment of the community welfare trust reflect our long-term vision for the region."

A Board of Trustees for the community welfare trust is currently being appointed.

It will consist of one member from Lipton Teas and Infusions, two from Browns Investments, four representatives of various community interests, and one independent member.

Community members from the two counties have been invited to share their opinions on the new welfare trust fund.

Experts from the Human Impact Pathway, affiliated with the London School of Economics, have been engaged to gather insights from these communities.

The fund is expected to address critical social needs for more than one million people living in areas surrounding the tea estates.

This initiative follows the successful transfer of Lipton Teas and Infusions' tea estates to Browns Investments, which was finalised at the end of December 2024.

This transition allows both companies to focus on their core strengths while ensuring the ongoing development of the estates.

Experts from the Human Impact Pathway have begun their work by collecting community feedback through interviews, group discussions, surveys, and workshops.

The resulting report, which will take three months to prepare, will guide the community welfare trust in effectively utilising the funds to create long-term positive impacts where they are most needed.

The Human Impact Pathway is a nonprofit social venture affiliated with the London School of Economics and Political Science (LSE) and has received support from the United Nations Trust Fund for Human Security since 2018.

Together, they are working on a human security approach to community development, focusing on people-centred, bottom-up analysis to enhance safety and overall well-being.

This collaboration has fostered valuable business-community partnerships that address local needs in various countries.

In May 2023, James Finlay Kenya Ltd signed a sale agreement with Sri Lanka-based Browns Investment PLC.

This agreement was announced following a two-hour meeting at the Kericho County headquarters, attended by Governor Erick Mutai and key management from James Finlay, including Managing Director Simeon Hutchinson and Corporate Affairs Director General Ben Woolf.

After the meeting, Governor Mutai announced several agreements, including the allocation of 15 per cent ownership shares to the local community and the establishment of a Sh1 billion community endowment fund.

He said that Browns Investments would retain all current employees, implement recommendations from a task force and the National Lands Commission for a fresh resurvey of the tea estates, and ensure that any excess land is reverted to the county government. Additionally, James Finlay has agreed to withdraw all pending court cases.