The impact of multinational tea companies on the socio- economic evolution of small-scale tea farmers of Kericho District, 1954-2010

Abstract

The importance of tea in Kenya and more so in rural household economy cannot be over emphasized. For over five decades now, the people of Kericho County have been involved in tea growing yet this enterprise has failed to fundamentally transform their socio-economic condition. Could this scenario of socio-economic stagnation be explained by their relationship with the Multinational Corporations involved in tea production in the County? This study was inspired by the need to seek an answer to this question by examining the relationship between the Multinational Corporations engaging in plantation agriculture and how it affects the socio-economic activities of small-scale farmers of Kericho County, Kenya during the period 1895-2010. The study was guided by three objectives; first, to examine the socioeconomic organization of the Kipsigis before the coming of colonialists and introduction of tea, second, to assess the origin, evolution and impact of Multi-National Corporations and plantation agriculture in general on the local people, and finally, to examine the measures that Multi-National Corporations have put in place to assist the rural community. The study spanned through three phases. 1895 – 1924 saw the establishment of colonialism. 1924 – 1963 witnessed the articulation of tea farming with local systems of production, while the period 1963 – 2010 was crucial to the evolution and propagation of the small-scale tea sub-sector in Kericho County. Unilever Kenya (formerly Brooke Bond) and James Finlay Company (formerly African Highlands Produce Corporation) operating in Kericho County, were used as case studies. The main sources of data used were oral interviews, archival material and questionnaires. Secondary data included books and articles on the subject. The study used a sample size of twenty eight informants who were selected using Snowball Sampling Technique and Stratified Sampling Method. Underdevelopment theory was used in the study to measure the impact of capitalist forces whereas the articulation of modes of production theory was employed in analysing the interaction between Multinational Corporations and indigenous smallholder production systems. The study was based on the premises that, first, there exists a negative impact of the Multinational Corporations on the community, and second, that the Multinational Corporations have attempted to put in place effective measures to assist the tea farmers. The study established that there initially existed exploitative relationship between Multinational Corporations and the people of Kericho County. Further, the study found out that the relationship that exists between the Multinational Corporations and the residents of Kericho cannot fully be considered as entirely negative since the measures that have been put in place by the Multinational Corporations have considerably improved the relationship between the two parties. However, the study holds the view that the Multinational Corporations need to do much more so as to positively impact the life of the community. A closer working relationship between the Multinational Corporations and the local community especially in the conception stages of the intended measures should be initiated so as to help minimize mistakes such as imposing projects on the people.