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Deal #5354

Location

Location #1

Spatial accuracy level

Administrative region

Location

Migori Kenya

Target country

Kenya

General info

Land area

Size under contract (leased or purchased area, in ha)

Intention of investment

Non-food agricultural commodities

Comment on intention of investment

Tobacco

Nature of the deal

Pure contract farming

Negotiation status

[1990] Concluded (Contract signed)

Comment on negotiation status

"Alliance One International’s first purchases of Kenyan tobacco were in 1983 and the Company has had a legal presence in the country since 1990."

Implementation status

[2016] Project abandoned

Comment on implementation status

Operations scaled down in 2015. The company abandoned the project in 2016 due to fraud. The processing plant will continue running and process tobacco from Uganda.

Contract farming

Yes

Not on leased / purchased area (out-grower)

Yes

Not on leased / purchased farmers (out-grower)

1000

Comment on contract farming

Most sources mention 1000 farmers, only one source mentions 10 000 farmers.

Employment

Number of total jobs created

Jobs created (total)

Yes

Current number of jobs (total)

200

Comment on jobs created (total)

258 workers were dismissed in 2015- their payment was delayed.

Investor info

Operating company

Alliance One Tobacco (Kenya) Limited (#39205)

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Data sources

Data source #1

Data source type

Company sources

URL

http://www.aointl.com/contact/around-world/africa

File

Data source #2

Data source type

Media report

URL

http://www.businessdailyafrica.com/US-tobacco-firm-Alliance-One-loses-Sh5bn-to-fraud-in-Kenya/539552-3257000-wjocve/index.html

File

Date

2016-06-19

Comment on data source

Business Daily- US tobacco firm Alliance One loses Sh5bn to fraud in Kenya

Data source #3

Data source type

Media report

URL

http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=65309610

File

Comment on data source

Bloomberg Business- Company Overview of Alliance One Tobacco (Kenya) Limited

Data source #4

Data source type

Media report

URL

http://www.tobaccoreporter.com/2015/06/alliance-one-to-scale-down-operations-in-kenya/

File

Date

2015-06-04

Comment on data source

Tobacco Reporter- Alliance One to scale down operations in Kenya

Data source #5

Data source type

Media report

URL

http://www.prnewswire.com/news-releases/alliance-one-international-announces-investor-information-and-arrangements-for-call-300215745.html

File

Date

2016-02-04

Comment on data source

Alliance One International Announces Investor Information and Arrangements for Call

Data source #6

Data source type

Media report

URL

http://www.capitalfm.co.ke/business/2015/06/alliance-one-kenya-announces-local-operations-review/

File

Date

2015-06-03

Comment on data source

Capital Business- Alliance One Kenya announces local operations review

Data source #7

Data source type

Media report

URL

http://www.nation.co.ke/counties/Tobacco-farmers-in-dismay-after-buyer-departure/1107872-2893970-58leh7/index.html

File

Date

2015-10-02

Comment on data source

Daily Nation- Tobacco farmers in dismay after buyer departure

Data source #8

Data source type

Media report

URL

https://www.standardmedia.co.ke/business/article/2001242225/sacked-alliance-one-tobacco-workers-demand-their-dues

File

Date

2017-06-04

Comment on data source

Standard Digital- Sacked Alliance One Tobacco workers demand their dues Read more at: https://www.standardmedia.co.ke/business/article/2001242225/sacked-alliance-one-tobacco-workers-demand-their-dues

Produce info

Detailed crop, animal and mineral information

Crops area

Tobacco

Use of produce

Has export

Yes

Export

100

In country processing of produce

Yes

Overall Comment

Overall comment

The company abandoned the project in 2016 due to fraud. The processing plant will continue running and process tobacco from Uganda.

History (5 versions)

May 13, 2019, 2:45 p.m.	overwritten	Show this version	Compare with previous version
May 13, 2019, 11:03 a.m.	overwritten	Show this version	Compare with previous version
March 13, 2019, 1:42 p.m.	overwritten	This version	Compare with previous version
Jan. 22, 2018, 1:24 p.m.	overwritten	Show this version	Compare with previous version
Nov. 25, 2016, 12:36 p.m.	active	Show this version	First version