Company News

Mavoko Landowners Decry Armed Takeover of Property

A developer has begun construction on the disputed land.

Updated on

January 7, 2025

Illustration of a land dispute. (Photo: CK)

Landowners who acquired East African Portland Cement Co. (EAPCC) property in Mavoko, Machakos, after the company ceded Sh6 billion in land to avoid auction are facing a crisis.

A developer, supported by armed security personnel, has begun construction on the disputed parcels of land, sparking an outcry from the affected landowners.

The landowners, who paid Sh200,000 per plot for regularisation, have now called on the government to halt illegal developments on their property.

Mark Nzioki, who bought eight plots and paid Sh1.6 million in regularisation fees, recently recounted being shocked to find trenches and construction work on his property.

“I couldn’t believe my eyes when I saw the construction—and to make it worse, I was blocked from accessing my land,” he said.

Like Nzioki, Timothy Kioko, who has owned land for years, shared his frustration over threats to tear down his buildings, despite having proof of payment from KCB.

It is alleged that the bank accepted regularisation fees from the affected landowners while selling the same property to a new developer, although CK cannot verify these claims.

However, KCB has admitted the complaints and confirmed an ongoing investigation to address the concerns of the affected landowners.

In August 2021, EAPCC surrendered a parcel of land to KCB that had been used to secure a Sh3.3 billion loan from the lender to stop a looming auction.

The company had been struggling to find a buyer for 2,076 acres of land in Mavoko, which its shareholders voted to sell in September 2019.

The land was to be sold for about Sh5.4 billion to settle the debt, which had ballooned to Sh6.6 billion by then. The loan attracted Sh600 million in interest annually.

Interestingly, the property was on sale for Sh4.8 million per acre—a steep discount from the average of Sh14.8 million per acre in Athi River, according to the Hass Land Price Index.

Priority

After running out of patience, KCB reportedly threatened to auction off the company, forcing it to surrender 745 acres for disposal.

The parcel was part of about 12,000 acres of land that EAPCC held.

The bank, which appointed Tysons Limited and Antidote Agencies to dispose of the property, stated that priority in purchasing would be given to the occupants of the land.

At that time, the land was occupied by squatters who had arrived in 2010 after EAPCC announced plans to sell off the land following the exhaustion of its mining operations.

EAPCC, the producer of Blue Triangle cement and one of Kenya’s largest cement manufacturers, was founded in 1933 as a cement exporting business.

In 1956, the company started its first manufacturing plant in Athi River.

EAPCC had long held second place with a 25% market share, behind Bamburi Cement, but was dislodged by newer rivals due to financial turbulence that began in 2015 as a result of boardroom wars over company ownership.