As corruption scandals continue to cloud institutions in Kenya and killing mega investments, the latest company to bow out of Kenyan market is Americas, One Alliance. The U.S based tobacco firm One Alliance has called off its contract with Kenyan farmers.
Following forensic auditing that was carried out by a third party audit company hired by the American firm. One Alliance says they spent Sh.180Million to investigate the fraud in their Kenyan subsidiary which revealed up to Sh.5Billion was lost in an insider fraud scam.
The company had contracted 1,000 farmers in Migori which are the region’s biggest tobacco producer to supply it with the raw product for making cigarettes. One alliance has since cancelled their contract with Kenyan farmers and now engaging Uganda for the raw material.
Migori farmers had been contracted to supply the American company with tobacco to its processing plant in Thika. “improper accounting occurred at our Kenyan entity resulting in approximately $50.8 million of discrepancies, mainly in inventory and accounts receivable that stretches back to at least 2008,” read part of the company’s statement.
Insider dealings as that of the One Alliance has seen many big companies in Kenya call off their contracts if not collapsing. Uchumi Supermarket is on the verge of closing their shops. Imperial, Dubai and Chase Bank were both put on receivership following dirty inner frauds.
Another South African Company, Haco Tiger under the chair of the industrialist Chris Kirubi after forensic auditing was found to be another case of insider deals.
Directors accused of manipulating their data including profits. Investor confidence is key in any venture, and the corruption state in Kenya continue to swallow many and a discouragement to many investments.
The cancellation by One Alliance now leaves British American Tobacco an upper hand as the region’s biggest buyer of Tobacco.
Kenya Insights
As corruption scandals continue to cloud institutions in Kenya and killing mega investments, the latest company to bow out of Kenyan market is Americas, One Alliance. The U.S based tobacco firm One Alliance has called off its contract with Kenyan farmers. Following forensic auditing that was carried out by a third party audit company hired […] @spear,@123tokambio ,@gashwin leteni matusi @Young ,@123tokambio ,@Da Vinci ,@denis young ,@1776 ,@inzhener otmetka ,@Wakanyama ,@PepoPunda
unaitisha matusi ndio upate umaarufu? as a former insider, though at a junior level, i can tell you the tobacco industry is one cut-throat business. they are gone but they will be back because once BAT is left with a near monopoly they will shaft the farmers like they have always done. the crazy profits they will be making will have the competitors running back again. do not forget that due to the very strong anti-tobacco lobby growing areas are shrinking…
How is it possible for a company to just cancel a contract with Kenyan farmers and immediately sign another one with Ugandan farmers? Kwani the UG farmers were just growing tobacco as a hobby? They weren’t contracted by another company? Alafuuuu, even if the allegations are true, how the hell is it the Migori farmers’ fault?
Nitatetemeka kampuni tatu muhimu zikifunga kazi. In order of importance, from least to most important, kampuni zenyewe ni,
1 Kenya Power.
2 Safaricom.
3 The Government of Kenya.
Theoretically, the company could face fines of $18bn in the US, based on a standard penalty of $37,500 for each of the 482,000 cars fitted with “defeat devices”, which allowed them to mask exhaust emissions of nitrogen oxide (NOx) in pollution control tests.
mimi sijawahii sikia hii kampuni! kwani weta na bibi(pillpoard) wamenunuliwa 1st class ticket ingine? @fired kwani Uganda kuna wavutaji sigara wangapi? perhaps they could have tried makufuri land, the population huko is larger so maybe wavutaji sigara pia niwengi! or Ethiopia they might catch the yet to be packed in shipping containers to go visit relatives down south! hii story ni umeffi
These investors are infesting our country with a hope of benefiting from the situation of the current state of affairs only to be disappointed years down the line. Let them borrow a leaf from flourishing companies like one manufacturing innovative products like Arimis etc. na hawaringi!
These foreign companies look at profit or no profit. They do not understand the depth of corruption. The farmer steals from u, the transporter steals from u, agent steals from u, purchasing officer in company steals from u, account manager steals, regional manager steals… Makes the cost of good s very expensive driving investors to other countries. Eg tourist find it cheaper to go to tz, SA etc. Corruption continues to kill the country. Scares away our investors. And it’s not only government corruption that everyone concentrates on
