Dodoma. The Tanzanian government has issued a firm assurance that the rights and entitlements of 216 workers whose contracts were terminated by the Wakulima Tea Company (WATCO) will be fully protected, following a recent public outcry and protests.
The workers from WATCO, which owns the Katumba and Mwakaleli tea factories in the Rungwe District, Mbeya Region, had recently staged demonstrations demanding compensation and all legally due benefits after their contracts were unexpectedly cancelled.
Speaking to the media in Dodoma yesterday, October 9, 2025, the Permanent Secretary (PS) of the Ministry of Agriculture, Mr Gerald Mweli, confirmed that the Ministry has held high-level, candid negotiations to address the situation.
The meeting involved representatives from the factory owner, the Tanzania Tea Board (TBT), CRDB Bank, WATCO workers’ representatives, and the Rungwe District Commissioner’s office.
Full entitlements guaranteed
Mr Mweli stated that the meeting reached a consensus to ensure that all employees receive their full rights and benefits in accordance with the law.
“The challenge that emerged was that the employees’ contracts were terminated without them being paid their entitlements. We have agreed that no worker’s right will be lost, and the Ministry will continue to closely monitor this issue until it is fully resolved,” the PS declared.
Tea production set to resume
Addressing concerns about the tea market for Rungwe farmers, Mr Mweli also announced a significant agreement to ensure WATCO, through its Katumba and Mwakaleli factories, resumes purchasing tea leaves and restarts production within the next three months.
“I want to assure all the farmers in Rungwe District that they will continue to cultivate and sell their tea leaves to these factories as before. CRDB Bank is ready to provide financing to the current investor, or any other who steps forward, to ensure production continues,” he added.
In a further move to reassure the workforce, the Permanent Secretary confirmed that the terminated employees will be reinstated once production activities recommence, a process expected to take place within the next two months.
Finally, PS Mweli issued a seven-day ultimatum to WATCO’s owners to travel to Tanzania to engage in detailed discussions regarding the company’s loan with CRDB Bank, with the aim of finding a permanent resolution to the financial situation.
