A scorecard assessment of worker welfare and smallholder impact reveals progress alongside persistent questions about labour relations and genuine partnership
By Ethical Business Team
When Unilever East Africa inaugurated a warehouse in Nairobi in June 2023, Christian Byron, the company’s head of supply chain in Africa, articulated an ambitious localisation target: 70% of raw and packaging materials sourced from Africa by 2025. For Kenya specifically, this translates to KSh7.6 billion ($517 million) worth of materials procured domestically, supported by KSh4.4 billion ($300 million) in supply chain investments. The strategic pivot appeared straightforward: reduce foreign exchange exposure, build supply resilience, and embed operations more deeply within East African markets.
Yet 18 months later, the reality confronting Unilever Tea Kenya Limited reveals a more complex picture. Multiple labour disputes coursing through Kenyan courts, historical grievances from ethnic violence, and questions about mechanisation’s impact on employment underscore tensions between corporate sustainability narratives and lived experiences on tea estates and in factory settings.
The localisation scorecard
Target performance: Mixed progress
Unilever Kenya exceeded its 2023 local sourcing target, achieving 49% against a 45% objective. The 2024 target stood at 55%, progressing towards the 70% ambition. This performance reflects genuine momentum, particularly as five East African factories now manufacture 81% of fast-moving consumer goods sold regionally.
The business rationale remains compelling. Reginaldo Ecclissato, Unilever’s chief business operations and supply chain officer, disclosed the company absorbed $4.4 billion in net material inflation during 2022. Currency volatility and supply chain disruptions from the pandemic and Ukraine conflict exposed vulnerabilities in global procurement networks. Whilst sourcing from Africa costs more than buying from parts of Asia, managing foreign exchange costs became the driving imperative.
Stefan Cloete, managing director for Unilever East Africa, noted that local production shielded operations from supply chain interruptions during the pandemic. Over 95% of brands sold to African consumers are made in African factories, though until recently less than a third of necessary raw materials came from within the continent.
Africa, representing 3% of Unilever’s global turnover, delivered double-digit growth with positive volume and price throughout 2024. This performance contrasts sharply with challenges in markets like Indonesia, where Unilever experienced an 8.7% decline. The East African operation’s resilience validates the localisation strategy from a commercial perspective, even as questions persist about its social dimensions.
Smallholder programmes: Substantive but uneven
Training reach: 85,000+ farmers
Between 2012 and 2020, Unilever partnered with KTDA and IDH (the Sustainable Trade Initiative) to implement Farmer Field Schools, training over 85,000 small-scale tea farmers in sustainable agricultural practices. The programme established over 3,400 farmer field schools, with green leaf production rising from 727 million kg in 2008/2009 to 1,233 million kg in 2015/2016, according to KTDA chief executive Lerionka Tiampati.
An independent impact assessment by Wageningen University found that FFS participants experienced a 14% decline in productivity between 2013 and 2015, compared to a 22% decrease amongst non-participating farmers, demonstrating relative resilience during challenging periods. Farmers reported learning improved tea practices (25% of benefits mentioned), increases in yield and income (19%), and knowledge of income diversification (15%).
The company’s global commitment extends to supporting 250,000 smallholder farmers across 13 crops in seven countries by 2026. In Kenya, programmes target 26,000 smallholders through nutrition initiatives with the Global Alliance for Improved Nutrition (GAIN) and IDH. Field schools provided practical guidance on pruning techniques, input application, and accompanying courses on bookkeeping and health and safety. Between 2006 and 2008, a three-year project improved farmers’ tea yields by an average of between 5% and 10%.
Unilever positions itself as the world’s largest private buyer of Kenyan smallholder tea. Kenya produces approximately 450 million kilograms of tea annually, with smallholders cultivating plots typically measuring less than half an acre producing 60% of the country’s output. Over 600,000 smallholders deliver tea to factories managed by KTDA.
Systemic constraints: Largely unaddressed
Yet substantial challenges persist. Parliamentary reports note that buyers like Unilever prioritise quantity over quality, with tea from west of Rift Valley ending up predominantly in the UK market. The Kenya Tea Development Agency acts as intermediary, with its subsidiary Chai Trading Company purchasing approximately 90% of made tea from KTDA factories for further blending and trading.
Climate change poses significant threats. The Tea Board of Kenya reported that production in April 2025 fell 3.85% compared to the previous year, largely attributed to low rainfall. Smallholders face rising production costs and stagnant global tea prices, constraining incomes. Recent studies by the Fairtrade Foundation found that only one in five tea workers and farmers in Kenya earn enough monthly to support their families with essentials.
The gap between training programmes and economic security remains substantial. Whilst farmer field schools delivered knowledge transfer, they did not fundamentally alter market structures, pricing mechanisms, or bargaining power dynamics that determine whether smallholders achieve living incomes.
Labour relations: A troubled record
Court cases: Multiple disputes
The relationship between Unilever Tea Kenya Limited and the Kenya Plantation & Agricultural Workers Union reveals persistent friction. Kenyan courts have adjudicated numerous disputes between 2024 and 2025, involving summary dismissals, strike actions, and compliance with collective bargaining agreements.
In one 2025 case, two employees with over nine years of service each were dismissed following allegations of attempting to steal an electricity meter box. The Employment and Labour Relations Court found procedural fairness but questioned the substantive justification, noting sketchy evidence and absence of key witnesses at the disciplinary hearing. The court observed that the CBA restricted gratuity to employees with a minimum of 10 years’ service, meaning workers with nine years walked away without recognition or reward.
Another case from August 2025 involved a stores clerk dismissed after nine years following theft allegations. Whilst the court found procedural compliance, it questioned why supporting witnesses were not brought before the disciplinary committee. A October 2024 case centred on collective bargaining agreement violations, with the union arguing Unilever should have disclosed relevant information to allow effective engagement per Section 57(2) of the Labour Relations Act.
In December 2024, an appeal involved 25 respondents who participated in strike action in 2017 after Unilever refused to make counteroffers regarding CBA renewal. The workers did not report to work despite court orders, resulting in dismissal letters.
Historical grievances: Unresolved trauma
Historical shadows loom larger. In July 2020, a group of Kenyan tea plantation workers filed a complaint with the United Nations against Unilever, alleging the company violated international human rights standards by failing employees attacked during ethnic violence following Kenya’s disputed 2007 election. Workers reported seven deaths, over 50 rapes, and numerous serious injuries. The complaint accused Unilever of hiding behind corporate structures to avoid legal redress.
Under the UN’s guiding principles on business and human rights, which Unilever has endorsed, companies are obliged to remediate any human rights abuses to which they have contributed. Yet no comprehensive remediation appears to have materialised.
Mechanisation impact: Thousands displaced
Beyond courtrooms, mechanisation has reshaped employment. In 2015, Unilever introduced tea picking machines, displacing thousands of casual workers. Lucy Cheres, a 58-year-old mother of five from Kapkugerwet village in Kericho County, spent 15 years as a casual labourer on a Unilever plantation before losing her job to mechanisation. Each machine, operated by two workers, can harvest hundreds of kilograms of tea leaves within short periods, though quality suffers as machines reach only larger, older leaves rather than the delicate ‘two leaves and a bud’ standard achieved by skilled manual pickers.
Tea companies estimate labour costs account for up to 50% of total production costs, justifying mechanisation as necessary for global competitiveness. Yet tens of thousands of casual workers lost livelihoods without alternative employment opportunities or transition support.
Women bear disproportionate impact. They comprise over 60% of the workforce on tea plantations and represent a large proportion of smallholder farmers. Mechanisation concentrated job losses amongst this demographic, whilst safety initiatives and training programmes reached far fewer workers than those displaced.
The certification question
Recognition achieved: Top Employer status
Unilever Kenya has been certified as a top employer by the Top Employers Institute for seven consecutive years as of 2023. The Dutch research firm assesses companies across nine areas: talent strategy, workforce planning, onboarding, learning and development, performance management, leadership development, career and succession management, compensation and benefits, and culture.
Luck Ochieng, Unilever Kenya’s managing director, stated the company’s goal is creating a favourable environment of mutual trust and respect enabling employees to exploit their best potential. The company topped the food and beverages manufacturing industry, ahead of Nestlé Kenya.
This recognition sits uneasily alongside the labour disputes and historical grievances. It suggests a bifurcated reality: permanent employees may experience better conditions and career development opportunities, whilst casual workers, smallholder farmers, and those engaged through collective bargaining agreements confront markedly different circumstances.
Sustainable development alignment: Aspirational gaps
SDG 8: Decent work and economic growth
Unilever frames its supply chain transformation within SDG 8, which targets decent work, economic growth, and productive employment. Yet in 2024, nearly nine in ten workers in sub-Saharan Africa remained informally employed, lacking adequate social security, legal protection, or workplace safety measures. Global real GDP per capita growth is projected to slow to just 1.5% in 2025 due to trade tensions and policy uncertainty.
The International Labour Organization notes that global compliance with labour rights declined by 7% from 2015 to 2023. Mechanisation that displaces tens of thousands of workers without transition support runs counter to decent work objectives, regardless of business efficiency rationale.
SDG 12: Responsible consumption and production
Unilever’s localisation strategy offers potential contributions to SDG 12: shorter transportation routes reduce carbon footprints, local procurement stimulates regional economies, and direct relationships with suppliers enable better oversight. The company reports 97% of order volumes for palm oil, paper and board, tea, soy, and cocoa met deforestation-free requirements in 2024.
Yet domestic material consumption and material footprints continue expanding across regions. In sub-Saharan Africa, the material footprint was 32% lower than domestic material consumption, suggesting the region bears environmental pressures without proportionate economic benefits.
The company published its 2024 tea supplier list for transparency, yet the document offers limited insight into labour conditions, wage structures, or independent verification mechanisms across diverse supplier networks. Approximately 70% of monitored companies published sustainability reports in 2022, tripling since 2016, but the gap between disclosure and delivery remains substantial.
The scorecard summary
Performance matrix:
Local sourcing progression: B+ Exceeded 2023 targets, demonstrated genuine momentum towards 70% objective, though final achievement remains pending.
Smallholder training reach: A- Trained over 85,000 farmers through comprehensive field schools, delivered measurable yield improvements, built partnerships with KTDA and development organisations.
Smallholder economic security: C Training programmes did not translate to living incomes; farmers face stagnant prices, rising costs, and climate vulnerabilities; structural market barriers remain unaddressed.
Labour relations (permanent staff): B Seven consecutive years as certified top employer, focus on talent development and working environment.
Labour relations (casual/CBA workers): D Multiple court disputes, summary dismissals of long-serving employees, inadequate grievance resolution, mechanisation displacement without transition support.
Historical grievance remediation: F 2007 ethnic violence victims still awaiting meaningful redress 17 years later; corporate structures used to avoid accountability.
Transparency and reporting: B- Published supplier lists and sustainability commitments, but limited disclosure on wage structures, labour conditions, and independent verification.
SDG alignment (intent vs. delivery): C+ Strong articulation of sustainable development objectives, substantive gaps between policy commitments and ground-level reality.
Looking ahead
The African Continental Free Trade Area promises expanded markets, though implementation remains uneven. For Kenya, Unilever’s localisation strategy aligns with Vision 2030 sustainable development objectives. The company’s investment in supplier diversity and training programmes creates tangible opportunities.
Whether this model delivers on its dual promise of business resilience and shared prosperity depends on confronting uncomfortable realities. Multinational corporations navigating complex supplier networks face inherent challenges ensuring consistent standards. Yet some challenges reflect choices rather than inherent complexity.
Smallholder farmers require more than training. They need fair pricing mechanisms, access to affordable credit, climate adaptation support, and genuine influence over value chain governance. Workers deserve living wages, safe conditions, and authentic collective bargaining rights that extend beyond paper commitments to enforceable practice. Communities affected by historical grievances require meaningful remediation, not legal manoeuvring through corporate structures.
The scrutiny facing Unilever East Africa’s supply chains reflects broader questions about localisation’s substance. As multinationals reconfigure networks to manage geopolitical risks and climate uncertainties, the choices they make about labour standards, environmental practices, and community engagement will determine whether localisation truly serves local interests or merely relocates extraction under sustainability branding.
For Lucy Cheres, the 58-year-old former tea picker now working her small farm, and for the thousands of smallholders delivering to KTDA factories, these are not academic debates. They represent the difference between precarity and prosperity, between tokenism and transformation. The answer will emerge not from sustainability reports but from lived experience on the ground, where the true test of any supply chain strategy ultimately resides.
