Kakuzi Limited has vowed to challenge a National Land Commission (NLC) directive requiring the company to cede 3,250 acres of its land to Murang’a County and communities deemed vulnerable.
The firm said the land is central to its agricultural operations, and any disruption could negatively affect production, earnings, and employment.
The land in question represents nearly a quarter of Kakuzi’s total productive area of 4,949 hectares (12,229 acres). Following disclosure of the NLC order, the company’s shares dropped 3.67 per cent to Sh400 per share on low trading volumes of 215 shares.
Kakuzi is primarily owned by UK-based Camellia Plc, with 50.7 per cent and local businessman John Kibunga Kimani holding 33.35 per cent. The remaining shares are held by about 1,400 retail investors, whose daily trades seldom exceed 300 shares.
“Kakuzi has invested heavily in its land holdings and is wholly reliant on the land to deliver shareholder and related stakeholder value. Any disruption to its key agricultural resources will result in a material negative impact on Kakuzi operations and earnings, which may lead to job losses,” the company said in a statement. “Kakuzi is reviewing the recommendations and will use all legal means to preserve the rights of its shareholders.”
According to the company’s latest annual report, it has planted macadamia on 1,410 hectares, avocado on 1,117 hectares, tea on 510 hectares, and other tree crops across 1,912 hectares.
The NLC’s order stems from a petition by Kenyans claiming their land was taken during colonial times. After a long investigation, the commission directed Kakuzi to release 3,200 acres for settlement of the most vulnerable claimants, and at least 50 acres to the county government for public use.
The directive also includes improving access to roads and communal facilities such as schools. The national and Murang’a County governments are expected to coordinate implementation, including issuing titles and formalising settlements.
For years, local residents have accused Kakuzi of acquiring large tracts of land unlawfully during the colonial era. A group of petitioners requested the NLC to investigate historical land injustices, and the dispute has been in court.
The NLC previously issued orders that no leases should be renewed until historical claims are resolved, and 999-year leases should be reduced to 99 years. Kakuzi’s parent company, Camellia Plc, maintains that all land claims have been rejected through Kenya’s legal system.
Kakuzi is not alone in facing land pressure. Del Monte recently gave up 1,312 acres to Murang’a County and 697 acres to Kiambu County. Similarly, Eastern Produce Kenya Limited, a Kakuzi sister company, is under pressure to release land to communities in Nandi County, where it operates a tea plantation.
