The National Land Commission (NLC) has ordered Kakuzi to surrender 3,250 acres of land to Murang’a County and its vulnerable residents, for which the agricultural firm says it will initiate a legal battle to quash the directive.
The land represents about a quarter of the Nairobi Securities Exchange-listed firm’s total productive land size of 4,949 hectares (12,229 acres).
Kakuzi’s share price has shrugged off the risk of land surrender, following the company’s disclosure of the NLC order on Wednesday morning.
The stock was down 3.67 percent to Sh400 as of midday on small volumes of 215 shares. Most of the company’s shares are held by UK multinational Camellia Plc (50.7 percent) and businessman John Kibunga Kimani (33.35 percent).
Dr Kimani was raised in the agricultural firm’s estates and over the decades amassed the ownership that saw him become a director of the company in November 2020.
The balance of the shares is distributed among some 1,400 retail investors, with daily trading rarely exceeding 300 shares.
“Kakuzi has invested heavily in its land holdings and is wholly reliant on the land to deliver shareholder and related stakeholder value. Any disruption to its key agricultural resources will result in a material negative impact on Kakuzi operations and earnings, which may lead to job losses,” the company said in a statement.
“Kakuzi is reviewing the recommendations and will use all legal means to preserve the rights of its shareholders.”
The company has planted macadamia on 1,410 hectares, avocado (1,117 hectares), trees (1,912 hectares) and tea (510 hectares), according to its latest annual report.
NLC investigation
Following a petition by Kenyans who alleged that they were dispossessed of their land during the colonial days, the NLC conducted a years-long investigation that culminated in orders requiring Kakuzi to surrender the land as a final settlement on any claims against the company.
The NLC directed Kakuzi to give up 3,200 acres to settle the most vulnerable members of the claimants.
The agency also ordered the company to surrender at least 50 acres to the County Government of Murang’a for public use.
The NLC also directed Kakuzi to address other land-related issues that have caused regular flare-ups in the community, such as a lack of access roads to communal facilities, including schools.
The national and the Murang’a county government are to coordinate the implementation of the NLC directives, including the issuance of titles and regularisation of settlement schemes within Kakuzi land.
For years, communities in Murang’a have accused Kakuzi of illegally acquiring thousands of acres of land during the colonial era.
A group of individuals asked the NLC to investigate historical land injustice regarding Kakuzi’s acquisition of its land holdings.
Although the dispute went to court, the NLC issued a series of general directives against the agricultural firm prior to the latest, more definitive orders.
“Allotments and titles to be issued for public purpose only. All leases for land held by Kakuzi in Murang’a County should not be renewed until the historical land injustice claim is heard and determined. Any 999-year leases to convert to 99 years,” NLC said earlier.
Landowner pressures
The parent firm, Camellia, has stated that the land claims have been refuted through the Kenyan legal system. Kakuzi is the latest major landowner to face pressure to cede part of its property, following the fruits processor Del Monte's surrender of 1,312 acres to the Murang'a County Government and 697 acres to the Kiambu County Government.
Kakuzi’s sister company, Eastern Produce Kenya Limited, has also faced pressure to cede land from the local community in Nandi County, where it has a tea plantation.
Some of the community living around Kakuzi’s estates have been buying shares in the company in what has been seen as both an investment and establishment of a platform to potentially air their grievances at forums such as annual general meetings.
Through Kakuzi Neighbourhoods Development Foundation, they held a 2.52 percent stake as of December 2024. The stake has a current market value of Sh197.7 million.
Pressure to cede land has become one of the material risks for agricultural firms with significant land holdings in the fertile Rift Valley and Central Kenya regions.
