This archive report was first published on 3 October 2021.
On October 3, 2021, Unilever Tea Kenya Limited's Board of Directors approved plans to separate its global tea business, including its plantations in Kenya.
The Kenyan tea business will be transferred to a foreign newly incorporated tea company, Unilever Tea Holdco UK Limited (TeaCo), subject to any regulatory approvals. This move aims to create a dedicated tea group within the Unilever Group.
According to a notice to shareholders of Limuru Tea, Unilever Kenya Board stated that the assets being transferred to TeaCo include Unilever Tea Kenya's shareholding in Unilever Tea Kenya Limited.
As a result of the transfer of shares, Unilever Tea Kenya Limited's indirect interest in Limuru Tea Plc will also transfer to TeaCo.
Unilever Tea Kenya Ltd, a subsidiary of Unilever, an Anglo-Dutch conglomerate, is involved in the production of tea, mainly for export. The company started as Brooke Bond Kenya (BBK) in 2004 and was later renamed Unilever Tea Kenya Limited (UTKL).
Today, UTKL has a total landholding of 16,223 acres, operates 20 tea estates, and has eight factories manufacturing an average of 32 million kgs of tea per year.
Unilever Tea Kenya Ltd was delisted from the Nairobi Stock Exchange in January 2009 after Brooke Bond took its holding in the company to 97.65 percent, citing the requirement that all listed firms should have at least a 25% equity stake owned by local shareholders.
