A storm is brewing over the allocation of iron ore-rich land to Devki Steel Mills at Kishushe Ranch in Wundanyi, Taita Taveta County, as leadership wrangles within the management escalate.
The company had recently hired workers to clear the land, but residents stormed the area and destroyed iron sheet structures that had been erected.
A section of the ranch's shareholders has raised concerns after the investor’s name appeared on the Mining Cadastre Portal. They questioned how the company acquired the mining licence and who issued mining consent without involving the landowners.
Devki Steel Mills, a subsidiary of the Devki Group, is owned by industrialist Narendra Raval. The company is in the process of constructing an Sh11 billion iron ore pelletisation Plant in Voi which, upon completion, will rely on ore from the ranch for processing and value addition.
Efforts to get a response from the company were futile as Peter Paul, the Managing Director, did not respond to phone calls and text messages.
Kishushe Ranching Cooperative Society Ltd, which has over 700 shareholders, has been embroiled in a leadership dispute for the past two years, which deepened after the formation of a third faction in May.
Two factions, one led by former secretary Danson Kidai and another by current chairman Chombo Shete, have been at loggerheads, with Mr Kidai accused of giving the investor consent without involving all shareholders.
In May, a section of members formed an interim committee to spearhead an election aimed at ending the supremacy battle between the two factions. Led by Ms Matilda Waleghwa, the interim committee has also voiced concerns, stating that there was no proper consultative process to allocate the land to the investor.
The Mining Act, enacted in 2016, mandates public participation in any mining-related activity that affects local communities. Section 20 of the Act states that investors must engage host communities before accessing land or commencing extractive operations.
Ms Waleghwa said the government and the investor bypassed this requirement in the latest allocation.
“We demand full transparency and adherence to the law. We’ve not seen any notices, no barazas (public meetings) have been held, and no explanations given. This is not lawful,” Ms Waleghwa said.
According to her, decisions of such magnitude should involve all shareholders to ensure their consent is secured before finalising agreements.
"We have a problem with how Devki came to our land without our permission. The Constitution clearly states that power belongs to the citizens and in this case, the rightful holders of that power are the members of this ranch," she said.
Another shareholder, Benedict Mwabili, said the investor has never held any meeting with them. He insisted that shareholders have the ultimate power and that the law protects them.
"He is invading our land with impunity," he said.
Mr Shete also accused the government of violating the law by allowing the investor to access the site without their knowledge or consent from the landowners, thereby breaching the Mining Act.
“It would be a violation of statutory obligations and may warrant legal action, including injunctions against any ongoing or planned operations,” he said.
He called for an immediate halt to any activities by the investor on the site until the matter is resolved.
“The land belongs to the people, and no investor should be allowed in through the back door,” Mr Shete said.
So far, according to Mr Shete, only three companies have been granted consent. These are Samruddha Resources Kenya Limited which has stopped mining due to nonpayment of required royalties and fees, Archers Post Investment Company Ltd and Universal Mineral Explorers, which are affected by delays in licence issuance.
County Police Commander Jonathan Koech said some people have been summoned to record statements regarding the incident. He warned that action will be taken against anyone inciting residents and members against the investor.
"We will not allow this kind of incitement to continue. The investor has already reported the invasion to us and we have kicked off the investigation to know those behind the incident," he said.
Multiple attempts to reach officials from the Ministry of Mining went unanswered. However, Regional Mining Officer Thomas Kipngeny said none of the investors in the area currently hold an active licence. Some applications are being processed by the Ministry in Nairobi and will be approved by the Cabinet Secretary.
He noted that the ongoing leadership wrangles have complicated matters, some of which will have to be resolved in court.
"There are many factions there, that's why we are seeing many complaints," he said.
Kishushe Ranch, a mineral-rich area in the county, has long attracted interest from mining companies due to its iron ore deposits. P
ast extractive activities have led to disputes over revenue sharing, lack of corporate social responsibility (CSR) initiatives, and nonpayment of required fees to the ranch, leaving residents in poverty despite the valuable resources.
