Firms say Mr Lenku move to freeze land transactions in some areas has triggered widespread panic among investors in the county.
They say the move is punitive to persons who have already acquired land and are in possession of genuine titles.
The move by the Kajiado County government was however backed by the National Land Commission.
A group of land buying companies, their agents and clients are threatening to sue the Kajiado County government for freezing land transactions in some demarcated zones.
Through Microtel Investments, the traders say Governor Joseph Ole Lenku did not consult affected parties before making the move.
The traders claim Mr Lenku's statement two weeks ago has now triggered widespread panic among investors in the county.
While launching the Kajiado County Spatial Plan, Mr Lenku then said that land being advertised for sale through the media was “fake”.
The governor said his government would not approve any development intended to be made on such land.
He added that in Kajiado, land would be zoned according to intended use.
"We have land for industries, housing, ranching and wildlife," said Mr Lenku.”
"It should strictly be used for what it was intended for. If you find yourself in an area designated for agriculture, do not attempt to make it a human settlement.”
The move by the Kajiado County government was backed by the National Land Commission.
NLC vice-chair Abigael Mbagaya asked potential buyers to do due diligence before forking out their hard earned money.
Speaking to the Business Daily in Kitengela, John Muriithi and Charles Nyoike, directors of Microtel are now asking the governor to rescind the move on land already acquired, and whose owners have genuine titles or risk court action.
"Mr Ole Lenku cannot claim to encourage investment in the county while at the same time presiding over a process that will see the same investors losing their savings," said Mr Muriithi.
"We are law abiding citizens and while we respect the proposed land demarcation by the Kajiado County government, we feel that the move is punitive to persons who have already acquired land and are in possession of genuine titles."
Issued by same govt
They claim that land ownership documents in their possession were issued by the same county government.
"The Kajiado County Government cannot run away from the fact that there are people with genuine land titles," said Mr Nyoike.
"We believe there should have been consultations with the people affected before the governor issued his statement. The county government needs to tell us what to do with the land already in our possession."
The company has already sold land in Kitengela, Ongata Rongai, Ngong, Loitokitok, Kisaju and Magadi, all in Kajiado County.
"If the county government feels that land already bought is in contravention to their land use policies let them offer our clients alternative land in the right areas.
"When a county government fails to honour documents it issues to investors, how does it expect other investors to trust it in other transactions?” asked Mr Muriithi.
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