A section of MPs from Kiambu and Murang’a have raised concerns over the delayed resurvey of the land used by Del Monte and renewal of its lease.
Patrick Wainaina (Thika), Simon King’ara (Ruiru), Jude Njomo (Kiambu) and Joseph Nduati (Gatanga) questioned why the lease has yet to be renewed eight years after the firm applied to the government. The multinational fruit processor applied for renewal of its land lease in 2012. Its current lease will expire in 2022.
Del Monte cultivates pineapples on 22,000 acres in the two counties. It is, however, embroiled in a protracted land dispute with the county governments and the Kandara Residents' Association — a squatters’ group that’s laying claim to the land.
The MPs toured the company in Thika on Monday and held talks with managing director Stergios Gkaliamoutsas. They expressed concern that the delayed resurvey of land and renewal of lease is hurting the firm’s activities as it cannot effectively plan its operations in the face of uncertainty.
The parliamentarians lamented that the multinational juice maker is facing an imminent closure should the government fail to speed up the process. They warned that continued inaction might prompt Del Monte to close up shop and that would cause devastating effects on the national economy.
“The cost of Del Monte leaving Kenya is just too high, thousands of jobs will be lost at a time Kenyans are grappling with unemployment,” Wainaina said, noting that 6,500 direct jobs and 28,000 indirect jobs are at stake if the lease is not renewed.
"The lease should have been renewed five years ago because of the magnitude of what the company needs to do.”
The legislator said Kenya stands to lose Sh10 billion in forex income, including Sh7.5 billion on suppliers "backward linkage".
Wainaina said a resurvey of the tracts will determine the actual acreage in use so excess land is ceded to the government for further developments in the interest of the public.
“The MD has confirmed to us that they cultivate 22,000 acres. But there’s excess land that is not being utilised and that’s the land the government will use to put up cottage industries, health facilities, educational institutions and other amenities to be used by members of the public. That’s why we are pushing for the resurvey,” he said.
Del Monte MD Gkaliamoutsas said they have 22,000 acres in Murang’a and Kiambu in nine blocks with all ownership documents. He said the management welcomed the move by Parliament to have the land resurveyed and is willing to cede any portion they do not utilise.
Nduati noted that Del Monte pays its workers up to Sh2 billion annually — a sum he said sustains Thika and Kenol towns, as well as most parts of Gatanga constituency.
“The company has actually promised to start buying produce like avocados and mangoes from our local farmers and this will impact so many livelihoods,” Nduati said.
"The delays we are witnessing in the Del Monte land lease renewal are scaring away potential investors and is painting a bad picture for our country in terms of the investment environment.”
King’ara called on President Uhuru Kenyatta to intervene and save the firm from closure, saying it’s part of his industrialisation agenda for the country.
“We shouldn’t be closing firms that are already established in the country while the President is busy wooing more investors to Kenya,” he said.
The lawmakers planned to meet the Director of Survey on Wednesday to seek answers on why a resurvey has not been carried, despite orders by the President and Parliament that required it completed last year.
“We are concerned why it is taking too long to resurvey the land and to renew the lease because we know the importance of the company to Kenyans and our country’s economy,” Njomo said.
In November last year, the National Assembly Lands committee chaired by Rachael Nyamai (Kitui South MP) told the Lands ministry, through the National Land Commission (NLC), to resurvey the tracts.
The committee recommended that the Director of Survey, the Ministry of Lands and the Physical Planning department give a report within three months following the survey. This has not been achieved seven months down the line.
Parliament also ordered the NLC to investigate circumstances under which the company allegedly acquired four parcels — LR Nos 10862, 10741, 11312 and 11146-measuring 7,400 acres. The parcels are said to have been surrendered to the government after dissolution of two companies trading as Sassa Coffee and Rappit B Limited — the alleged owners.
The committee made the recommendations after a petition filed by Kandara Residents' Association through its patron Philip Kamau, who had requested Parliament to investigate what he termed irregular renewal of Del Monte's land lease.
The association represents 5,000 squatters, including victims of historical injustices, from Murang'a and Kiambu. It is demanding a large chunk of land from Del Monte, which they accuse of occupying government land illegally.
The NLC, in a Gazette notice dated March 1, 2019, said 70 per of any excess land surrendered by Del Monte should be given to members of the community and 30 per cent to the respective county government.
Edited by F'Orieny
