/biz/ - Business & Finance

https://archive.is/K94Tq

>At least 10 tea-plucking machines have been torched in multiple flashpoints in the past year, according to local media reports. Recent demonstrations have left one protester dead and several injured, including 23 police officers and farm workers. The Kenya Tea Growers Association (KTGA) estimated the cost of damaged machinery at $1.2 million (170 million Kenyan shillings) after nine machines belonging to Ekaterra, makers of the top-selling tea brand Lipton, were destroyed in May.
>In March, a local government taskforce recommended that tea companies in Kericho, the country’s largest tea-growing town, adopt a new 60:40 ratio of mechanized tea harvesting to hand-plucking. The taskforce also wants legislation passed to limit importation of tea harvesting machines. Nicholas Kirui, a member of the taskforce and former CEO of KTGA, told Semafor Africa 30,000 jobs had been lost to mechanization in Kericho county alone over the past decade.
>Some machines can reportedly replace 100 workers. Ekaterra's corporate affairs director in Kenya, Sammy Kirui, told Semafor Africa that mechanization was “critical” to the company’s operations and the global competitiveness of Kenyan tea. As the government taskforce established, one machine can bring the cost of harvesting tea down to 3 cents (4 Kenyan shillings) per kilogram from 11 cents (15.32 shillings) per kilogram with hand-plucking.
>Analysts partly attribute Kenya's unemployment rate — the highest in East Africa — to automation in industries, including banking and insurance. Some 13.9% of working age Kenyans (over 16) were out of work or long term unemployed in the final quarter of 2022.