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Article

3 Feb 2020

Author:
Daily Nation (Kenya)

Kenya: Locals demand local benefits to allow Lake Agro, formerly Dominion Farms, operate in their area

"Fresh dispute rocks planned Yala swamp takeover"The takeover of Yala swamp in Siaya County, which was announced recently, has run into fresh controversy after Ugunja MP Opiyo Wandayi issued new conditions to the new investor. The takeover was announced through a Gazette notice that gave Lake Agro Limited absolute control of the vast land. American firm Dominion Farms Limited, which had a 25-year lease to use the Yala swamp, officially handed over the lease to Lake Agro in a notice issued on January 13. The notice, which was signed by the legal counsel of the two entities, indicates that Dominion Farms, which initially occupied the land measuring 3,700 hectares within the swamp, will, subject to fulfilment of certain conditions, surrender the lease to Lake Agro Limited, which is linked to the Rai family.

But, speaking over the weekend, Mr Wandayi warned that Lake Agro Limited will not be allowed to harvest cane from the swamp until a sugar factory is established there."We won't allow the investor to grow sugar cane in the swampland, a resource that belongs to Siaya, and transport the raw material all the way to Kakamega," he said. The MP said he is aware that the company, through its subsidiary West Kenya Sugar, was given approval to establish a factory by the now-defunct Kenya Sugar Board several years ago, and wondered why it is yet to do so."We want the factory to be established immediately as a condition to allow the investor to move into the swamp so that our youth can get jobs," he said.