Okoth Obado throws cigarette company out of county

Governor Okoth Obado Tuesday banned cigarette manufacturer Mastermind Tobacco Kenya (MTK) from operating in Migori County.

He said the firm, MTK, is frustrating farmers through delayed and meagre payments.

“I am asking all the 5,000 farmers contracted by Mastermind to switch to other cash crops because this company is unwelcome in Migori.

“Mastermind has been taking farmers for a ride. Enough is enough. Let them move to another county,” Mr Obado said in Migori, which is the largest producer of tobacco in Kenya.

However, MTK corporate affairs manager Josh Kirimania dismissed the ban as “wishful thinking.”

“The governor has no authority to ban a legitimate firm from operating in Migori. We will carry on with business as long as farmers continue growing tobacco,” he told the Nation by phone.

Mr Kirimania said they are making plans to clear the farmers’ arrears.

MONEY TO PAY SCHOOL FEES

“Schools are soon opening and growers need money to pay fees. Politicians should stop interfering with our business,” he said.

Mr Obado’s reaction follows complaints from farmers who said they have not been paid over Sh100 million since January.

Some Mastermind officials in the county blamed the head office for the delay in processing payments.

“We are not to blame for this mess as we have sent the data of all our farmers to Nairobi. Let the farmers be a bit more patient,” one manager said.

The order by Mr Obado caused panic among employees of the cigarette firm who fear losing their jobs.

“BAT Kenya and Alliance One can remain in Migori, but they must increase the cost of leaf price in view of the high standards of living and expensive farm inputs,” Mr Obado said.

North Kanyamkago Ward rep George Omamba said he will take the governor’s order to the county assembly for ratification.

“All the 60 Members of the County Assembly in Migori are in agreement that MTK must leave the county. They have frustrated farmers for a long time. We are going to formalise their exit using the law,” he said.

Farmers have conducted demonstrations five times to demand for their pay. They threatened to paralyse Masterminds operations if their money is not paid within a fortnight.

“We will press on until our demands are met. Since ours is a contractual agreement, we are thinking of taking legal action,” a farmer from Uriri, Mr John Okeyo, said.

Last week, operations came to a standstill in Kehancha in Kuria West Constituency when hundreds of Mastermind farmers demonstrated over the unpaid dues for eight months. The also demanded bonuses.

The growers marched in the streets before storming the sub-county and MTK offices in Kehancha where they held staff hostage for several hours before they left.

“We are yet to be paid our dues from January and our pleas to get our money have fallen on deaf ears,” a farmer, Mr Chacha Sagame, said.

The Kenya Tobacco Farmers Association (Ketofa) chief executive officer, Joseph Wanguhu, weighed in on the matter and told Mastermind to pay the cash immediately.

“We are not able to feed our families and pay school fees for our children. We have made several visits to Mastermind Tobacco offices in Migori, Nyabohanse and Kehancha without success,” another farmer, Mr John Chacha from Kuria West Constituency said.

Union official Mr Wanguhu said they have written several letters to officials of the Mastermind Tobacco headquarters in Nairobi, but have not received positive answers.

The other firms operating in Migori – Alliance One Tobacco and BAT Kenya — have, however paid their 12,000 farmers about Sh3 billion for last season’s produce. Alliance exports tobacco leaves to Europe.