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Tobacco farmers to lose KES 1.2B after buyer closes shop

09 June 2015, 13:04 Alfred Onyango

Migori - Close to 10 000 tobacco farmers in Migori County are set to lose an estimated KES 1.2 billion annually after one of the leaf buyers closed their shop in Kenya.

Allince One, a multi-national company is now eying the Ugandan market.

Ugandan tobacco is in high demand in the world market compared to the Kenyan tobacco which has been on the decline in the recent past.

The company's withdrawal has dealt a serious blow to the farmers as it was the biggest buyer after British American Tobacco (BAT) and Mastermind.

Read Also:Chinese brands take on Nairobi's mobile phone market

Unlike the two buyers that were making tobacco products, Alliance One Tobacco was majorly exporting the green leaves.

Hundreds of employees have also been rendered jobless.

Patrick Kimani, a staff member said, "We have closed shops and everybody including managers, leaf technicians and divers have lost jobs."

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