Controversy over Sh11 billion Devki plant takes new twist

The controversy surrounding the 45-year land lease granted to Devki Group for the construction of a Sh11 billion steel plant has taken a new turn.

On Wednesday, the Taita Taveta County Government stated that it does not recognise the allocation of the 14,500-acre plot to the investor by a faction of the Kishushe Ranching Cooperative Society.

Lands and Mining Executive Christine Zighe said the county was not involved in the leasing of the land to Devki Group to extract iron ore.

“We have not seen the lease documents, and if it is there, then we do not recognise it,” stated Ms Zighe.

Agriculture and Cooperatives, Danson Mzenge, also said the county government was not aware of any lease agreement issued to the investor by one faction of the ranch.

“The purported ranch officials who issued the lease agreement to the investor have no moral authority to do so. As far as we are concerned, the ranch is caught in ongoing leadership disputes. Those disguising themselves as officials are imposters,” added Mzenge.

During an interview with The Standard in Wundanyi town, the executives confirmed that three warring factions have been operating in the over 60,000-acre ranch.

Mzenge stated that the term of office for Chombo Shete's group, which consists of over 700 shareholders, has expired. Meanwhile, another group led by Matilda Mwangondi took advantage of the conflict and established itself.

The other group, led by Danson Kidai Mwandoto, with about 330 shareholders that issued the controversial lease agreement, had also imposed itself. Both factions claim to be bona fide officials of the ranch.

Mzenge disclosed that Mr Kidai held an AGM, which was attended by only 45 members, where they resolved and issued the contested lease agreement to the investor. “The AGM was illegal, and it did not comply with the Cooperatives Act,” he stated.

The CECM stated that the county government cannot intervene to ensure accountability at the ranch, as one faction has approached the High Court to prevent them from doing so.

Many questions now arise regarding why security personnel have been harassing, intimidating, and arresting some ranch officials for trespassing.

Interestingly, Kidai’s groups granted a 45-year lease of 14,500 acres to the cement tycoon Narendra Raval to extract iron ore for his plant.

According to documents in our possession, the society, through its officials, authorised leasing the disputed land to Devki Steel Limited from December 1st, 2024, with an automatic renewal at a consideration of Sh100 for every tonne of iron ore extracted from the land and a further Sh50,000 per month for the entire land from the date of commencement of the commercial mining and extraction of iron ore.

Lease documents seen by The Standard have been signed by one society faction led by Danson Kidai Mwandoto and some members of his group. Mwandoto's group is officially recognised by the county executive as legitimate officials.

“As far as we are concerned, we do not recognise the lease agreement, as it is exploitative with serious grey areas and will not benefit the locals,” maintained Mzenge.

This week, Taita DCIO Jacob Nyongesa summoned dozens of ranch officials for questioning over the destruction of property belonging to the investor.

Last week, senior officials of the investor were blocked from accessing the ranch and were chased away after attempting to mobilise machinery to begin extracting iron ore.

 Those summoned were Shete’s and Mwangondi’s groups.

 “We have been summoned to appear before the DCI, but our stand will not allow Devki to extract minerals, as the investor will deny us jobs,” said the officials.

Mwabili accused the police of resorting to threats and intimidation, warning that they will not be coerced into fighting for their fundamental land rights.

“The police are being used to intimidate ranch officials opposed to the allocation of the plot to the investor,” he stated.

Mwabili maintained that the investor is supposed to buy raw materials from the ranch and artisanal miners. He said that if the investor is allowed to extract minerals, then locals will be deprived of their economic livelihoods.

“As far as we are concerned, the allocation of 14,500 acres of land to Devki was illegal, and the 45-year lease should be revoked,” he maintained.

Ms Mwangondi clarified that the investor was constructing the steel plant to purchase materials from local suppliers as previously agreed. Any attempt to deprive locals of their mining rights will be resisted at all costs.