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.