Del Monte vows not to cede any land for Murang’a city project

Food processor Del Monte has told the court that it is not ready to cede any bit of its 22,500-acre land to the Murang’a County government, arguing that no agreement to do so was ever signed between the two warring parties.

Del Monte admits in freshly filed court papers that it had started negotiations with Murang’a County that could have seen it cede more than 6,000 acres of its massive plantation, but adds that the talks did not materialise.

The food processor has sued Murang’a and Kiambu counties for refusing to renew leases it has over the vast land that cuts across the two regions, allegedly until Del Monte cedes some land to county government officials.

Murang’a claimed in court that Del Monte had agreed to cede 6,000 acres, half of which was to be used to build a multibillion-shilling satellite city, while the rest would be reserved for public use. Del Monte’s lease for the land expires in 2022.

“Del Monte did not enter into any agreement for the exchange of its land with Murang’a County government. Murang’a’s allegation that Del Monte had agreed to cede 3,000 acres is therefore not true. Del Monte and Murang’a had begun negotiations on exchange of land, which negotiations never materialised into any agreement,” the food processor says.

Del Monte claims special conditions in its current lease allowed it to apply for renewal at least five years before expiry.

The Murang’a government in November accused the food processor of mistreating workers and covering up massive crimes on its plantations, including dumping in its dams of bodies of trespassers who are often mauled to death by the company’s security dogs.

Del Monte, however, says the information on its alleged mistreatment of workers and poor operational conditions was sourced from an untrusted website, hence the court should disregard it.

READ: Mwangi wa Iria accuses Del Monte of killing, dumping trespassers in dam

Murang’a County also accused Del Monte of transfer pricing – the manipulation of prices between a firm and its subsidiaries aimed at avoiding taxes.

The food processor says it pumps more than Sh8 billion into Gatanga Sub-county in Murang’a claiming every year through salaries and funds paid to local suppliers.

“The value of Del Monte’s input into the local community cannot, therefore, be dismissed as casually as Murang’a County alleges,” Del Monte managing director Stergios Gkaliamoutsas said.

The firm has filed a new application seeking to have the suit referred to a bench of more than one judge, arguing that its petition raises grave issues of laws governing counties that need to be addressed.

Del Monte in its petition holds that it has constructed six clinics and a dam supplying clean water to locals, among other projects, as part of its corporate social responsibility programme.