Sh2.1bn dispute sparks worker protest at Rungwe Tea Factory
Workers of the Katumba-based Rungwe Tea Growers’ Factory in Rungwe District, Mbeya Region, hold placards during protests against dismissals, demanding payment of their outstanding dues amounting to over Sh2.1 billion. PHOTO|SADDAM SADICK
The factory has remained closed since May 9, 2025, disrupting the livelihoods of more than 15,000 tea farmers
Mbeya. Tension has gripped the Katumba-based Rungwe Tea Growers’ Factory in Mbeya Region after 216 workers staged a placard protest to oppose their dismissal.
They are demanding dues worth Sh2.1 billion and have appealed for government intervention.
The factory has remained closed since May 9, 2025, disrupting the livelihoods of more than 15,000 tea farmers.
Some growers have abandoned their plantations, while others have shifted to alternative crops, dealing a blow to the district’s economy.
Addressing the protest on Thursday, October 2, 2025, the workers vowed to remain at their jobs until their employers, Tatepa and Maris Africa, the factory’s investors, settle claims totalling more than Sh2.17 billion.
Workers’ claims committee chairman, Mr Robert Shayo, said the dismissal letters issued by the employers came as a shock.
He explained that 216 workers had been instructed to vacate their jobs by September 30, 2025, in violation of contractual terms.
“Our stand is to remain at work. We are demanding national social security funds (NSSF) contributions, leave allowances, and other statutory benefits outlined in our contracts. The decision caught us completely off guard,” said Mr Shayo.
Explaining their defiance, Mr Shayo stressed that costs would rise legally as the proper termination procedures had not been observed.
Factory manager, Mr Stanslaus Benela, said the workers’ defiance highlighted the economic burden caused by the closure.
He noted that the shutdown had hit tea farmers, reduced household incomes in Rungwe District, and slashed national revenue.
“Some farmers have abandoned their tea fields, while others are uprooting the crop for alternatives. We urge the government to intervene and secure a new investor,” said Mr Benela.
He added that more than 15,000 farmers had been affected, while the wider economy had suffered as unpaid water and electricity bills mounted, leaving surrounding communities in difficulty.
“Financial institutions that once processed salaries and farmers’ payments are no longer operating. Even social security funds are missing contributions,” he said.
Tanzania Plantation and Agricultural Workers Union (TPAWU) secretary in Mbeya Region, Ms Jacline Novat, said the union had proposed that the employer pay workers their basic salaries, leave allowances, service certificates, and long-service awards.
She added that the employer was urged to provide Sh500,000 to each worker in recognition of their service, three months’ housing allowance, and transport costs for employees from outside Tukuyu.
“We are awaiting the employer’s response by Monday to determine our fate. In the meantime, we urge patience as their representative has assured us of feedback,” said Ms Novat.
The factory’s board of directors’ representative, Mr Essau Sengo, acknowledged the protest and pledged to forward the workers’ concerns to the employer before giving a response on Monday.
He urged the workers to remain calm, stressing that the priority was to adhere to laws and procedures to ensure they receive their entitlements.
“On behalf of the board, I assure all workers that your message has been received. I will act on it and provide feedback by Monday. Rest assured, we are committed to protecting your rights through lawful means,” said Mr Sengo.
