Obado accuses firms of fleecing tobacco farmers

Migori Governor Okoth Obado has accused local tobacco companies of exploiting farmers. 

He lamented that the companies, Alliance One Tobacco, Mastermind Tobacco Kenya and BAT Kenya are paying growers peanuts while reaping massive profits. 

“Sometimes, a farmer is  paid Sh17 per kilogramme of leaf tobacco instead of Sh200. The farmers are now living in abject poverty because of the poor returns,” Mr Obado told  the Nation on Sunday.

“It is unfortunate and a shame that these companies are posting billions of shillings in profits, yet suppliers  of their raw materials are suffering,” said the governor.

But officials of the three companies defended themselves saying leaf prices are determined by supply and demand in the world market.

“Leaf quality is also deteriorating due to poor farming practices which has made our tobacco less attractive,” said an official a Alliance One who did not wish to be named.

“Other industry players also have a hand in determining prices in a new grading system,” the official added.

Mr Obado said farmers are also exploited through provision of farm inputs. “The companies buy fertiliser at Sh1,700 per bag and sell it farmers for Sh4,000,” explained  Mr Obado.

 “A drive through the tobacco growing parts of Migori reveal a life of misery and massive exploitation. My county is  the biggest producer  of tobacco in Kenya yet our farmers remain the poorest,” he said while dismissing claims that he directed the firms to pay the low prices.