Finlays has announced the completion of its sale of Kenyan tea estates business James Finlay Kenya to Sri Lankan conglomerate, Browns Investments PLC.
The sale was first announced in May 2023, with Finlays selecting Browns Investments PLC as the approved buyer based on its strong legacy of guiding its tea estates to continued growth, but also its focus on doing so sustainably while supporting its workforce and local communities.
James Finlay Kenya is a leading grower, manufacturer and supplier of Kenyan tea. It covers a total self-contained area of 10,300 hectares, including 5,200 hectares of tea fields over nine tea estates. The sale includes all parts of James Finlay Kenya Ltd except the Saosa tea extraction facility which will remain under Finlays’ ownership and will become known as ‘Finlays Extracts, Kenya’.
“James Finlay Kenya has played an enormous role in Finlays’ success story over the years. In Browns Investments, the JFK community has a conscientious new investor with a bright and exciting vision. We will always have a very close relationship with ‘Browns Plantations Kenya’, and we continue to invest in Kenya through both Saosa, our tea extraction facility, and through James Finlay Mombasa. While this is the end of an era, we’re delighted that 15% of shares in James Finlay Kenya will be owned by members of the local community,” said James Woodrow, Group Managing Director of Finlays.
Proud heritage
Headquartered in Colombo, Browns has a proud heritage in operating plantation businesses, owning Maturata Plantations, Hapugastenne Plantations PLC, and Udapussellawa Plantations PLC.
It is one of the largest tea producing companies in Sri Lanka consisting of 49 individual estates that stretch across an area of over 30,000 hectares and employs over 10,000 individuals.
“We’re delighted to welcome all members of the James Finlay Kenya community into the Browns family. It’s an amazing business, powered by an incredible community, and superb growth potential which will not just benefit the community, but the Kenyan economy at large,” Kamantha Amarasekera, CEO of Browns Investments PLC.
As part of the sale agreement, Browns and Finlays have mutually agreed to acknowledge the long-standing support of the local community by offering 15% of shares in James Finlay Kenya for public sale through the Kipsigis Highlands Multipurpose Cooperative Society.
Opportunity for growth
James Finlay Kenya, which will become known as ‘Browns Plantations Kenya’ in due course, is Brown’s first investment in the Kenyan tea industry which it sees as an exciting opportunity for growth.
In December 2021, Browns acquired Finlays’ Sri Lankan tea estates business, which has gone from strength to strength, demonstrating Browns’ successful commitment to sustainable growth.
Finlays has a long history in Kenya and is continuing to invest in the country through its continued ownership of the Saosa tea extracts facility, and its Kenyan tea sourcing and packing operation James Finlay Mombasa. Saosa manufacturers a range of tea extracts and aromas, adding significant value to the Kenyan economy.
Scandal
James Finlay Kenya has refuted claims it is exiting the Kenyan market/ rebranding to avoid scrutiny over allegations of sexual abuse and poor working conditions at its Kenyan farms.
The company has also been embroiled in disputes with local tea pickers over its use of mechanised tea picking machines which have left most of them jobless.
Additionally, it is accused of disregarding orders by the National Lands Commission to have the lands it holds resurveyed.
