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Tea growing in Kericho
Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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Tea is very lucrative. I hope the politicians will stop messing with it. Wherever these takatakas pass, nothing survives.
BBI will solve it :)
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Rank: Veteran Joined: 11/13/2015 Posts: 1,658
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Ngalaka wrote:Baratang wrote:
@kusadikika, kshs 10,000 annual fee is a drop in the ocean. Why?
Consider, Unilever Tea Company which has about 16,000 acres under tea in Kericho. If each acre carries about 10,000 tea trees, that makes a total of 160,000,000 trees. If in any given season each tree yields 4kg then total production per season is 640,000,000kg. In the tea auction in Mombasa a kg of tea fetches about kshs 250 per kg totalling kshs 40 billion!!! Rent for the land totals kshs 160 million which makes a paltry 0.4% of the total tea revenue!!That is for tea companies operating in the region.
The only problem that I see is if the county government refuses to renew the leases. Both governments will lose badly revenue wise and they know it.
Fragmenting these farms into smaller individual units will cut the tea production in the area to more than 60%.
What to do??
Who renews the lease on these kinds of Titles - is it the County government or is it Ardhi House Nairobi! Methinks the latter. Renewal of leases is for both govts. For leaseholds county govt has quite a say e.g. the NSSF tassia plots can't get titles because nairobi county gave conditions like provisions of roads sewers before it can approve the subdivision. The National and County Governments, before approving the extension of lease, are required to seek recommendations from the following officials; The County Executive Committee Member responsible for land; The County Government Surveyor; The County Government Physical Planner; The Land Administration Officer of the Commission; and Any other relevant authority.
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Rank: Member Joined: 5/17/2008 Posts: 489
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Meanwhile our key markets of Iran and Pakistan are increasingly becoming unreliable....the former wants to increase tax on our tea while the latter is looking for cheaper sources.
Not yo mention the rising popularity Rwandan tea.
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Rank: Elder Joined: 7/22/2008 Posts: 2,723
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wukan wrote:Ngalaka wrote:Baratang wrote:
@kusadikika, kshs 10,000 annual fee is a drop in the ocean. Why?
Consider, Unilever Tea Company which has about 16,000 acres under tea in Kericho. If each acre carries about 10,000 tea trees, that makes a total of 160,000,000 trees. If in any given season each tree yields 4kg then total production per season is 640,000,000kg. In the tea auction in Mombasa a kg of tea fetches about kshs 250 per kg totalling kshs 40 billion!!! Rent for the land totals kshs 160 million which makes a paltry 0.4% of the total tea revenue!!That is for tea companies operating in the region.
The only problem that I see is if the county government refuses to renew the leases. Both governments will lose badly revenue wise and they know it.
Fragmenting these farms into smaller individual units will cut the tea production in the area to more than 60%.
What to do??
Who renews the lease on these kinds of Titles - is it the County government or is it Ardhi House Nairobi! Methinks the latter. Renewal of leases is for both govts. For leaseholds county govt has quite a say e.g. the NSSF tassia plots can't get titles because nairobi county gave conditions like provisions of roads sewers before it can approve the subdivision. The National and County Governments, before approving the extension of lease, are required to seek recommendations from the following officials; The County Executive Committee Member responsible for land; The County Government Surveyor; The County Government Physical Planner; The Land Administration Officer of the Commission; and Any other relevant authority. Someone correct me if I am wrong but my understanding of the case in Kericho is that the 99 year lease since 1920 is over so that the land at this moment in time belongs to the county of Kericho. The Ksh. 10,000 per acre lease is not being offered to the multinationals as a lease renewal for another 99 years but is instead being offered as a "kukomboa shamba" year to year. The only company that has secured a long term lease at this point is Del Monte with the Kiambu Government. No? What is the fate of the following other companies? Tata Magadi- I know Ole Lenku wants 17,000 per acre per year. Carbacid Williamson Tea and Kapchorua East Africa Portland Cement Kakuzi Sasini KWS. How much land rate does KWS pay to Nairobi County Government?
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Rank: Elder Joined: 12/7/2012 Posts: 11,937
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Part of these many increments of rates is for the companies to refuse and you know what next will follow. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Veteran Joined: 11/13/2015 Posts: 1,658
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Kusadikika wrote:
Someone correct me if I am wrong but my understanding of the case in Kericho is that the 99 year lease since 1920 is over so that the land at this moment in time belongs to the county of Kericho. The Ksh. 10,000 per acre lease is not being offered to the multinationals as a lease renewal for another 99 years but is instead being offered as a "kukomboa shamba" year to year.
The only company that has secured a long term lease at this point is Del Monte with the Kiambu Government. No?
What is the fate of the following other companies?
Tata Magadi- I know Ole Lenku wants 17,000 per acre per year.
Carbacid
Williamson Tea and Kapchorua
East Africa Portland Cement
Kakuzi
Sasini
KWS. How much land rate does KWS pay to Nairobi County Government?
The fate of the other companies is with the county assemblies. They can impose land rates on them when passing the finance bill if they are short of cash. Government also pays rates for gazetted forests, government land with no titles in townships, public land including rural public land including the chief's office. I would think KWS are exempt. Most county govts don't bother to collect rates from government yet they charge individuals so much for those 50X100 plots.
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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wukan wrote:Kusadikika wrote:
Someone correct me if I am wrong but my understanding of the case in Kericho is that the 99 year lease since 1920 is over so that the land at this moment in time belongs to the county of Kericho. The Ksh. 10,000 per acre lease is not being offered to the multinationals as a lease renewal for another 99 years but is instead being offered as a "kukomboa shamba" year to year.
The only company that has secured a long term lease at this point is Del Monte with the Kiambu Government. No?
What is the fate of the following other companies?
Tata Magadi- I know Ole Lenku wants 17,000 per acre per year.
Carbacid
Williamson Tea and Kapchorua
East Africa Portland Cement
Kakuzi
Sasini
KWS. How much land rate does KWS pay to Nairobi County Government?
The fate of the other companies is with the county assemblies. They can impose land rates on them when passing the finance bill if they are short of cash. Government also pays rates for gazetted forests, government land with no titles in townships, public land including rural public land including the chief's office. I would think KWS are exempt. Most county govts don't bother to collect rates from government yet they charge individuals so much for those 50X100 plots. Rates for govt land???? 
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Rank: Veteran Joined: 11/13/2015 Posts: 1,658
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Lolest! wrote:wukan wrote:Kusadikika wrote:
Someone correct me if I am wrong but my understanding of the case in Kericho is that the 99 year lease since 1920 is over so that the land at this moment in time belongs to the county of Kericho. The Ksh. 10,000 per acre lease is not being offered to the multinationals as a lease renewal for another 99 years but is instead being offered as a "kukomboa shamba" year to year.
The only company that has secured a long term lease at this point is Del Monte with the Kiambu Government. No?
What is the fate of the following other companies?
Tata Magadi- I know Ole Lenku wants 17,000 per acre per year.
Carbacid
Williamson Tea and Kapchorua
East Africa Portland Cement
Kakuzi
Sasini
KWS. How much land rate does KWS pay to Nairobi County Government?
The fate of the other companies is with the county assemblies. They can impose land rates on them when passing the finance bill if they are short of cash. Government also pays rates for gazetted forests, government land with no titles in townships, public land including rural public land including the chief's office. I would think KWS are exempt. Most county govts don't bother to collect rates from government yet they charge individuals so much for those 50X100 plots. Rates for govt land???? If only govt paid its CILOR payments regularly we would see a return of the basic municipal services from county govts Quote:
Calculation of contribution in lieu of rates
(1) The contribution in lieu of rates payable in respect of public land shall be calculated at the same rate as that levied by the local authority on rateable property in the same rating area (as defined by the Rating Act) (Cap. 267) as that in which the land is situated.
(2) The contribution in lieu of rates shall be payable on such date or dates and in such instalments as may be determined by the Minister, who may fix different dates and instalments for the different bodies mentioned in rule 2.
(3) If during any financial year any land, before the date fixed by the local authority for payment of rates in that year, becomes exempt from payment of contribution in lieu of rates by virtue of rule 4 or rule 5, no contribution shall be payable in respect of that land for that year.
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Rank: Elder Joined: 7/22/2008 Posts: 2,723
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Rank: Elder Joined: 7/22/2008 Posts: 2,723
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