Kakuzi fights NLC order as squatters invade expansive Murang’a land

Kakuzi PLC has criticised a recent directive by the National Land Commission (NLC), saying the order has triggered anarchy on its land in Murang’a and set the country on a dangerous path of impunity.

 The agribusiness giant warned that the ruling threatens investor confidence and constitutes “a flagrant breach” of its constitutionally protected right to property.

 The warning came after squatters invaded the expansive farm, subdividing it and also planting bananas.

 In an appeal filed before the Environment and Land Court in Murang’a, the company argues that the NLC directive requiring it to surrender 3,200 acres for settlement of squatters amounts to arbitrary expropriation that could destabilase Kenya’s investment climate.

 “The NLC directive in respect to the surrender of 3,200 acres creates a negative precedent and a significant risk to the Kenyan economy by enabling NLC to arbitrarily expropriate land,” senior counsel Fred Ojiambo wrote in the company’s application.

 Through Ojiambo, Kakuzi insists the NLC has no jurisdiction to issue such sweeping orders, terming the decision “illegal, irrational, and unconstitutional”.

 The company is also contesting the commission’s instruction that it surrender an additional 50 acres to the Murang’a County government.

 Kakuzi says the directive is “strange, lacking transparency, and made with ulterior motives,” since the county was neither a claimant nor had it filed any request for land allocation.

 The company says the invasion by squatters that followed the NLC’s November 17 ruling has disrupted operations, including livestock rearing and other agricultural activities. “These acts of invasion will continue unless the court issues the necessary interdicts and restraining orders,” Ojiambo warned.

 “There is an imminent risk that the applicant’s agricultural operations will be paralysed, resulting in irreversible damage.” Kakuzi is now seeking urgent injunctions to halt the implementation of the NLC orders until its petition is heard and determined.

 The dispute traces back to historical land injustice claims lodged with the NLC by local communities who argued that parts of Kakuzi’s land were acquired at the expense of indigenous people.

 The complaints triggered a multi-year review of several parcels under the company’s administration. On November 17, the commission ruled in favour of the claimants and issued a directive requiring the surrender of land for settlement.

 In its Gazette Notice of November 14, 2025, the NLC further ordered the ministries of Lands and Interior to vet and profile vulnerable squatters eligible to benefit. It also asked the Directorate of Land Adjudication to work with Kakuzi on titling where necessary and that Kakuzi to relocate schools and public utilities closer to communities or provide access roads in consultation with the public and relevant government bodies.

 Kakuzi, however, maintains that the NLC acted far outside its mandate. “The said directive is illegal and is null and void ab initio. It amounts to a nullity, as the NLC has acted in excess of its jurisdiction,” said Simon Odhiambo, the company’s executive head of corporate affairs.

 In his affidavit, Odhiambo argues the commission ignored crucial facts, including that Kakuzi holds an indefeasible title to the affected parcels—titles resulting from legally sanctioned amalgamations of land acquired over decades. He adds that the company has invested approximately Sh11 billion in the land, including in biological assets, dams, buildings, machinery, infrastructure, and ongoing capital projects. Kakuzi warns that the forced surrender of 3,200 acres would harm its 1,400 local and international shareholders.

 Kakuzi is listed on both the Nairobi Securities Exchange and the London Stock Exchange.

 The company argues that the NLC’s directive violates Kenya’s commitments under the 1999 Kenya-UK bilateral investment treaty, which protects investors from nationalisation or measures tantamount to expropriation. “The NLC’s directive in this regard is unfair, unjust, and unreasonable,” Odhiambo says.

 The company warns that if left unchecked, the ruling could send shockwaves through the agricultural investment sector, undermining Kenya’s reputation as a stable destination for foreign capital.

 Kakuzi further argues that the NLC did not conduct public hearings before arriving at its decision—an omission the company says violates the commission’s own procedures and the requirements of fair administrative action.

 “The entire decision-making process lacked transparency and failed to engage affected stakeholders,” Ojiambo notes in the appeal. As the legal battle unfolds, Kakuzi is urging the court to quash the NLC directives and restore order on its property, warning that the ongoing invasion poses a threat not only to its operations but to the wider economy.