Listed agricultural firm, Kakuzi PLC, has warned investors of a "material risk" to its business after Kenya's National Land Commission (NLC) directed it to surrender 3,200 acres to settle historical land injustice claims.
- •The orders, backed by recent legislative changes that strengthen enforcement, also require the company to relocate schools and public utilities within its Murang'a County farms and provide land for a new urban centre.
- •The directives extend beyond the initial surrender, compelling Kakuzi to formalize earlier land transfers and provide new parcels for public use.
- •Kakuzi, a major producer of avocados, blueberries, and macadamia nuts, is heavily reliant on its land holdings.
The company stated the directives could disrupt farm operations and that any forced reduction in productive acreage would negatively affect earnings and employee livelihoods.
The claims date to the colonial era when British settlers consolidated large tracts of land, displacing local communities from their customary holdings. These communities' descendants, who later returned as landless residents, filed the petitions under Kenya's historical land injustice framework.
The case unfolds alongside past human-rights allegations that led Kakuzi’s UK-based parent company, Camellia, to settle a separate claim. While not directly related, that settlement heightened scrutiny of Kakuzi's operations from civil society and international buyers.
Kakuzi said it is reviewing the NLC's recommendations and will "use all legal avenues to protect shareholder interests." It has advised its approximately 1,400 shareholders in Nairobi and London to exercise caution until the legal process concludes.
The outcome will determine the final scale of land loss for Kakuzi and the degree of disruption to one of Kenya's prominent agricultural businesses, placing significant operational, legal, and financial pressure on the company.
