Kenya: Tobacco Farmers Accuse Firms of Exploitation

Source from:  The Standard Digital News 12/13/2012

A crisis looms in the tobacco industry following an ongoing go-slow by farmers. The farmers have vowed to continue boycotting delivery of tobacco to three multinational companies.

Ten days ago, they withdrew supply of their tobacco, demanding better prices.

Through the Kenya Tobacco Farmers Association (Ketofa), the farmers have complained of exploitation by the companies and violation of a memorandum of understanding reached in August. Ketofa Chief Executive Officer Joseph Wanguhu said according to the memorandum, British American Tobacco, Mastermind Limited and Alliance 1 Limited were to hold negotiations with tobacco farmers before fixing prices.

Only British American Tobacco and Alliance 1 Limited have signed the memorandum but are not going as per the agreement, they said.

Mr Wanguhu, however, requested farmers to remain calm and give room for further negotiation with the companies.In a press conference conducted in Nakuru on Monday, Ketofa officials led by the chairman, Mr Augustine Mwita, said that efforts by the association to negotiate with representatives of tobacco buying companies had hit a dead end.

He regretted that the same international companies were offering tobacco farmers in Tanzania Sh280 per kilogramme while Kenyan farmers were getting Sh170. He said farmers may decide to sell their tobacco to Tanzania denying the country revenue. Enditem