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Kakuzi challenges court order to surrender 3,200 acres to squatters

Kakuzi

Entrance of Kakuzi PLC offices in Muranga County.

Photo credit: File | Nation

Kakuzi Ltd has moved to the Court of Appeal seeking to overturn a decision that upheld a directive requiring it to surrender more than 3,200 acres of its land for the settlement of alleged squatters.

In a ruling in April, the Environment and Land Court dismissed the company's bid to quash a decision by the National Land Commission (NLC) directing it to cede the land for settlement schemes and an additional 50 acres to the Murang'a county government for public amenities.

Kakuzi argues that the trial court erred in finding that the NLC had the authority to order the surrender of the land.

The company says the judge failed to consider serious questions over the legality and procedural fairness of the commission's decision, particularly the directives on the settlement schemes and the transfer of 50 acres to the county government, which it claims were made without giving it a hearing.

"The learned judge erred in breaching the appellant's statutory and constitutional right to be heard," Kakuzi states in its appeal, citing provisions of the National Land Commission Act, the Fair Administrative Action Act and the Constitution.

The company further faults the court for declining to suspend the NLC decision despite what it describes as arguable issues regarding its legality, rationality and procedural fairness.

The company is asking the appellate court to set aside the April 27, 2026 ruling and the orders dismissing its application.

The ELC court had found that the NLC acted within its mandate when it ordered the regularisation of settlement schemes, documentation of public utilities and the surrender of 50 acres to the Murang'a County Government.

The court held that the commission had conducted extensive investigations before reaching its decision.

According to the court, the NLC visited the land, heard the parties, received evidence and submissions, and carried out further inquiries involving relevant government agencies and individuals.

The judge found no evidence that the commission acted in bad faith or was biased against Kakuzi, saying its recommendations were well considered.

The dispute stems from a Kenya Gazette notice published on November 14, 2025, containing recommendations arising from historical land injustice claims lodged against the company by several groups between 2017 and 2021.

The claimants include Kakuzi Division Development Association, Kituamba Kaloleni IDPs, Milimani Community and Hannah Njoki Mwangi.

The NLC directed the Director of Land Adjudication and Settlement, in consultation with Kakuzi and other government agencies, to regularise settlement schemes on the company's land by facilitating the issuance of title deeds and completing pending settlement processes.

It also ordered Kakuzi to relocate schools and other public facilities facing access challenges closer to residents or, alternatively, provide proper access roads in consultation with affected communities and relevant government institutions.

The commission further directed the company to regularise or document all land previously surrendered to the Murang'a County Government for market centres and to surrender at least 50 additional acres for the development of urban centres and other public utilities.

Before the trial court, Kakuzi argued that the NLC's directive was unfair, unlawful and unconstitutional. It said repeated requests for copies of the commission's determinations had gone unanswered, denying it an opportunity to respond.

The listed firm also argued that it had invested about Sh11 billion in biological assets, land, buildings, dams, plant and machinery, furniture, fittings and other developments.

It warned that surrendering 3,200 acres would adversely affect its operations and the interests of its 1,400 shareholders while creating uncertainty for investors and setting a negative precedent for Kenya's economy.

However, the court found that Kakuzi had failed to demonstrate that the commission's decision was unlawful or without merit and dismissed the case with costs.

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