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Orengo assures sugar firm owns disputed land

Updated Wednesday, September 12th 2012 at 00:00 GMT +3

By PETER OPIYO

Lands minister James Orengo has said controversial land acquired by Busia Sugar Company (BSC) should be returned to farmers.

Orengo said the original owners should get their land back, especially if it cannot be used to build a sugar factory as was intended.

The 840-acre piece of land was compulsorily acquired on behalf of the Ministry of Agriculture in 1995 and was intended for construction of a sugar factory but to date this has not been realised.

“If the land is not used for the intended purpose, then it should revert to original owners,” Orengo told a joint Parliamentary Committee on Land and Agriculture.

BSC was formed by Government and it acquired the land from Nasewa Group.

Orengo said farmers were paid about Sh57 million following the acquisition.

Controversy has dogged the piece of land with reports that Mumias Sugar Company (MSC) sold it to a private company to cover a loan owed to it by BSC.

Prohibitory orders

But Orengo told the committee that the land is still owned by BSC and that though there were attempts by Mumias to transfer it to Kaplone Limited, this did not succeed.

“Nobody should be in doubt since the land still belongs to BSC,” Orengo told the committee co-chaired by Naivasha MP John Mututho and Gachoka MP Mutava Musyimi.

He further pointed out that prohibitory orders have been issued by courts on the land and no transfer can take place.

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