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Deal #5354

Location #1

Spatial accuracy level
Administrative region
Location
Migori Kenya

Target country
Kenya

Land area

Size under contract (leased or purchased area, in ha)
0

Intention of investment

Intention of investment
Non-food agricultural commodities
Comment on intention of investment
Tobacco

Nature of the deal

Nature of the deal
Pure contract farming

Negotiation status

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

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

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.

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.

Operating company

 

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Data source #1

Data source type
Company sources
File

Data source #2

Data source type
Media report
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
File
Comment on data source
Bloomberg Business- Company Overview of Alliance One Tobacco (Kenya) Limited

Data source #4

Data source type
Media report
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
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
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
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
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

Detailed crop, animal and mineral information

Crops area
Tobacco

Use of produce

Has export
Yes
Export
100

In country processing of produce

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.

May 13, 2019, 2:45 p.m.

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May 13, 2019, 11:03 a.m.

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March 13, 2019, 1:42 p.m.

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Jan. 22, 2018, 1:24 p.m.

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Nov. 25, 2016, 12:36 p.m.

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