In June 2024, the Business and Human Rights Resource Centre contacted Lipton following media reports of concerns raised in relation to the sale of its tea estates division to Browns Investments, a subsidiary of Browns and Company PLC, of which LOLC Holdings is a major shareholder. Lipton provided a response to BHRRC on 11th July 2024. Details of the allegations raised, questions asked to Lipton by BHRRC and Lipton’s response are outlined below.

The tea estates are on land that was violently seized from the Kipsigis and Talai clans by the British army in the early 20th century. In 2019, Kenya’s National Land Commission ruled that the land had been seized unlawfully at that time. Kenya's Environment and Land Court ruled in 2023 that the NLC did not have the authority to revoke title deeds, particularly on land that has never been public or government land.

Concerns have been raised by members of the local community in relation to this sale, as reported in the Financial Times and Business Daily:

• During the sale process, a consortium of cooperatives in Kenya made an offer to Lipton to acquire the Kericho estate, and stated they could match the price offered by Browns. The consortium said that “acquiring the tea estates at a fair valuation would restore ownership of the lands to the descendants of the indigenous residents of the Rift and Valley Highlands and address the debate in Kenya in respect of historical land injustices”. Yet, members of the consortium claim that Lipton ignored this approach and did not provide fair access to the sale process.
• Moreover, Lipton’s Responsible Sourcing Policy (May 2023 – Item 11), commits Lipton to adhere to the “free, prior and informed consent” of local communities for use/transfer of land. Members of the consortium claim that Lipton has ignored this commitment during the sale process.
• LOLC – the majority shareholder of Brown’s Investments’ parent company, Browns and Company PLC – is a large micro-finance business which has provided the funds for Brown’s acquisition of Lipton. LOLC Cambodia, one of its largest subsidiaries, is currently under investigation for allegations of human rights abuses and has not provided any response to BHRRC on these matters. Lipton selected Browns as a buyer for their tea estates prior to the conclusion of the investigation of the allegations of human rights abuses by LOLC Cambodia.

The Kipsigis Community Clans have released numerous statements since the rejection of their bid outlining the historic land rights injustices and calling on Lipton to redress them.

In June 2024, the Business and Human Rights Resource Centre contacted Lipton to seek its response in relation to the allegations outlined, asking the company to provide:

1. Information about the process Lipton undertook to secure “free, prior and informed” consent from the local communities ahead of the estate sale to Browns Investments
2. On what basis Lipton made the decision to sell to Browns Investments, a Sri Lanka-based organisation linked (via its majority shareholder) to human rights abuses, rather than taking the opportunity to redress historic land rights injustices by selling the land to a consortium of cooperative societies with deep roots in the area
3. Information about the due diligence process Lipton has undertaken prior to announcement of the sale to ensure Lipton’s responsible sourcing and human rights policy commitments were upheld, despite the ongoing investigation into alleged human rights abuses by LOLC Cambodia.

Lipton provided a response to the questions on 11th July 2024. The full response can be seen in the attachment on this page. A summary of the responses is included below:

• Regarding the sale process, Lipton stated: "all the parties who expressed an interest in acquiring these tea estates .... were fairly considered, given equal access to the sale process and transparently engaged with throughout. The sale was overseen by local and international experts and structured to ensure compliance with all laws, including all relevant land-related laws" and that "Browns was chosen based on their track record in the sector; their ability to invest in and sustain large scale tea estates, its workers and their families; and their commitment to employees, tea communities, and industry-wide transformation. By working together, the two companies will improve tea quality globally and accelerate the use of responsible farming methods across the industry to drive sustainable growth that benefits everyone."
• Regarding FPIC, Lipton stated: "this is a private sale of business ownership which does not alter community resources or rights, when free, prior and informed consent (FPIC) would otherwise apply".
• The company stated that questions about Browns and their shareholders should be directed to them directly.

Lipton's full response can be seen below.