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Kenyan firm given three-month ultimatum to pay workers, farmers in Tanzania

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Some tea farmers and factory workers in Mufindi listen to the Deputy Minister for Industry and Trade, Exaud Kigahe (not in the picture), as he addresses their claims. PHOTO | CHRISTINA THOBIAS

Mufindi. The government has issued a three-month ultimatum to DL Company, which operates the Mufindi tea factory, to ensure that all outstanding payments to farmers and factory workers are cleared between April and June 2025.

DL Company is a subsidiary of Kenya’s DL Group which also has operations and interests in Tanzania, UAE, China and the United Kingdom.

DL Group, through its Tanzanian subsidiary, is largest tea producer in Tanzania and one of the largest in Kenya.

Speaking at the factory premises here at the weekend, the Deputy Minister for Industry and Trade, Mr Exaud Kigahe, said the government was deeply concerned about the factory’s viability and the potential impact on livelihoods in the area.

“There is a risk that the tea estate could turn into a bush if workers and smallholder farmers continue to be neglected,” he told tea farmers and workers during a meeting that discussed ongoing challenges, particularly delays in wage and produce payments following the factory’s suspension of operations on January 28 this year.

Mr Kigahe ordered the factory’s Managing Director, Mr Jefason Mofwi, to ensure all workers are paid their entitlements, including retirement benefits amounting to Sh1.6 billion.

He also directed that Sh124 million owed to farmers must be paid within three months.

“We did not expect such a serious breakdown at this factory, which once served as a lifeline for many families,” Mr Kigahe said.

He criticised the company’s leadership for failing to invest in the sustainability of the factory and for neglecting the welfare of the surrounding community, which depends heavily on tea farming for income.

“The people here are shocked that the government would allow such a vital factory to collapse. This factory is important; it is what paid for my education,” he said.

Mr Kigahe reaffirmed the government’s commitment to reviving the industrial sector, noting that the establishment of BBT Industries is part of broader efforts to promote development and create jobs.

Earlier, tea farmers and workers told Mr Kigahe that they were facing growing financial difficulties due to delayed payments, with some forced to quit their jobs or abandon farming activities altogether.

“We are living in hardship. Some of our colleagues have already left because they couldn’t survive without income. Those of us still here are enduring this situation with great difficulty,” said Chairperson of the DL Mufindi Tea Factory Workers’ Union, Mr Hamza Kanyika.

Mr Kanyika said that the prolonged delays have demoralised many workers, who continue to work without receiving their statutory benefits and wages.

The workers said the financial strain has affected their ability to provide for basic needs, including food, healthcare and school fees for their children.

Farmers also expressed similar frustrations, accusing the factory management of repeatedly failing to honour its payment promises despite continuing to collect tea from growers.

“We have been growing tea for years with the hope of improving our livelihoods, but now we are left waiting endlessly for our dues,” said a local tea farmer, Ms Jesca Ngimba.

In his response, Mr Mofwi apologised to both workers and farmers for the delays, attributing the problem to reduced tea production levels compared to previous years.

“We are aware of the hardships this has caused and are committed to resolving the situation. We plan to complete all pending payments within the next three months,” he said.

However, he acknowledged that the company is still facing financial challenges, which it is working to address to meet the government’s directive.