Surveyors warn governors Kabogo, Chepkwony on foreign leases

Surveyors have warned threats by governors to push for revocation of leases belonging to multinational companies will result in huge economic losses and scare away potential investors.

The Institution of Surveyors of Kenya (ISK), the industry lobby, says the threats to push for revocation of Thika-based Del Monte and Kericho’s Unilever and other multinationals’ land leases is driven by ill-informed policies and not economic reality.

“We have observed that counties, specifically Kericho and Kiambu have threatened not to renew the leases when they expire.

“Given that the land in question produces some of the top tea and pineapple export brands, this is likely to scare away the large-scale investors in the agricultural sector and has serious repercussions on the country’s economy at large,” said ISK chairman Paul Wambua in a statement.

Kiambu Governor William Kabogo has opposed the renewal of Del Monte’s lease on 20,000 acres in Thika that expires this year. It is not clear what part of Del Monte is in Murang’a and Kiambu though.

Del Monte grows pineapples on the land and currently has 3,000 employees.

The governor is proposing part of the land be turned into real estate for Thika residents.

Mr Kabogo’s counterpart in Kericho, Paul Chepkwony, has “stopped” multinationals from disposing of their land holdings.

He instead wants the land to revert to the government once the leases expire.

Kericho is home to multinational tea firms Van Rees Group, Finlays and Unilever.

Foreign interests

The leases were for 999 years but promulgation of the new Constitution in 2010 reduced the period to 99 years.

Mr Wambua said the ministry of Land Housing and Urban Development and the National Land Commission should give its advice before the situation worsens.

“We also call upon the Parliament, pursuant to Article 65 (4), to enact a legislation to safeguard such foreign interests.”

Tension over land rights between county governments and foreign investors comes at a time when Kenya is positioning itself as a top investment destination. It may derail efforts being made to woo international capital.

Foreign investors in other counties have also had run-ins with locals and politicians over land rights.

Siaya County Assembly wants an agreement between the defunct council and Dominion Farm owned by American Calvin Burgess revised.

The memorandum of understanding was entered between Dominion and the defunct county council for the use of 17,000 acres in Yala.