Council to repossess idle land from companies

By Kepher Otieno

Kisumu County

After lying idle for nearly two decades, former Kenya Breweries premises and Kisumu Cotton Mills (Kicomi) land will now be repossessed by Kisumu Municipal Council for fresh allocation to new investors.

Other major companies that collapsed decades ago and are yet to resume operations also face the purge. Kisumu Mayor Sam Okello and Town Clerk Daniel Olenkere said they had sent out notices to owners of the affected companies and the land would be ready to revert to the council in 90 days with effect from April 1.

"Rusty structures that exemplify the sorry state of the economy sum up how the premises look and that is what the council is out to correct through repossession," said Mr Okello.

Mr Olenkere said they were no longer ready to bear further brunt of idle land in Kisumu town after the once giant lucrative firms folded up and failed to revive their businesses.

The premises where Kisumu Cotton Mills once operated from. The municipal council says it will take back idle land from companies that fail to use it and allocate it to new investors. [PHOTO: TITUS MUNALA/STANDARD]

Thousands of residents lost job opportunities after the factories closed.

Aggressive mission

Kicomi collapsed when structural adjustment programmes prescribed by the World Bank and the International Monetary Fund eliminated price controls leading to unregulated liberalisation of the cotton sub-sector and competition.

It was then placed under receivership with PriceWaterhouseCoopers as the receiver managers. They later sold it to an Asian entrepreneur for an undisclosed amount in 1993.

Since then no substantive development project has been undertaken in the sector.

The town clerk told The Standard the companies that had been served.

The East African Breweries Kisumu plant, which ceased operations in 1993 has been turned into a depot for a local dairy firm.

Other industries that have followed suit are the Kenya Matches, Swan Industries, Kisumu Fishnet, Tower Industries and several medium sized industries.

Local leaders have embarked on aggressive mission to woo more investors to the town.

Kisumu Town West MP Olago Aluoch urged the council to repossess the land occupied formerly by KBL.

"The lease was given on condition that the land is used for industrial production, but the companies have breached the agreement," he said.

His Kisumu Town East colleague Shakeel Shabbir was more emphatic, insisting that the land must revert to the council. "The land is the council’s, and it must take it back because it has not been put into correct use," said Shabbir.