Rank: Elder Joined: 10/18/2008 Posts: 3,434 Location: Kerugoya
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Copy and Paste ExtractQuote:A row over who owns Kenya’s land is making life hard for foreign firms
Kericho, the capital of Kenya’s tea country, is a verdant spot.
Emerald-green estates stretch as far as the eye can see, hugging the western escarpment of the Rift Valley.
Set 7,000 feet above sea level, the climate is perfect for growing tea, Kenya’s biggest export, which fetched $1.4bn last year.
For Paul Chepkwony, the governor of Kericho County, these plantations are a reminder of the way the British stiffed his Kipsigis tribe of their land.
Under British rule the colonists took half the land on which the Kipsigis grazed their cattle, turning it into tea estates.
Mr Chepkwony demands that the British government pay compensation to 115,000 Kipsigis and their descendants, who lost their land. (It will not.)
Mr Chepkwony also says that a ruling in February by the new land commission allows him to increase land taxes on tea estates and demand a preposterous $20bn or so in profits that he claims were illegally acquired—equivalent to nearly a quarter of Kenya’s annual gdp.
The burden, he feels, should fall primarily on three firms that grow tea on disputed land: Finlays, Unilever and George Williamson.
If they cough up, they would be welcome to stay on as tenants of the Kipsigi people, he says.
To Mr Chepkwony’s irritation, the multinationals are not playing ball.
They have resisted his demands to surrender their title deeds for inspection.
They have also challenged the land commission’s ruling.
Kimutai Bosek, the governor’s legal adviser, warns that such recalcitrance could prompt frustrated Kipsigis to take the law into their own hands.
The tea companies do not take such threats lightly.
In June the governor of a neighbouring county led an invasion of an estate, uprooting tea bushes.
Historic land disputes are vexing multinationals in other sectors, too.
Kakuzi, a big British agricultural firm, and Del Monte Kenya, which grows 13,000 acres of pineapples, have faced demands to surrender large chunks of their plantations.
County governors are also using their new powers to make life difficult off the farm.
Tata Chemicals, an Indian soda-ash miner, has been slapped with a $166m land-tax bill it says it cannot pay.
Local politicians are also complicating things for Tullow, an Anglo-Irish company trying to extract oil in northern Kenya.
All this leaves Uhuru Kenyatta, Kenya’s president and Jomo’s son, in a bind.
Aside from fears that those with land grievances could one day turn to his family’s vast holdings, he presents himself as a champion of foreign investors.
Yet, preoccupied by a power struggle in his government and wary of alienating voters ahead of an election in 2022, Mr Kenyatta has remained aloof.
His silence may damage the economy.
Multinationals are not just big taxpayers but also sizeable employers.
Del Monte is Kenya’s largest exporter of canned pineapples.
Nearly two-thirds of tea processed by big firms comes from smallholders.
When landless peasants organised by the ruling party seized big commercial farms in Zimbabwe, the economy collapsed.
Some say Kenya’s land commission should look at under-utilised farms owned by politicians.
Or that Mr Kenyatta could do more good by reducing corruption, boosting urban employment and helping smallholders make their farms more productive.
Many Kenyans have legitimate land grievances, but making implausible demands of profitable firms does not seem the best way of addressing them. Source LinkClick "Skip Ad" to read the full story.
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