Kenya Insights

Tag: Galana-Kulalu

  • Galana Kulalu Investor Arrested in 100,000-Acre Land Fraud Case

    Galana Kulalu Investor Arrested in 100,000-Acre Land Fraud Case

    Director of agricultural firm detained over alleged conspiracy to defraud state corporation in multibillion-shilling land dispute

    The director of Sahal Agro-Holdings Limited was arrested Friday in connection with an alleged conspiracy to defraud the Agriculture Development Corporation (ADC) over a contentious 100,000-acre parcel at the Galana Kulalu Food Security Project.

    Abdillahi Hassan was detained in Sagana, Nyeri County, while traveling to Nanyuki.

    Police sources indicate he was released after posting Sh500,000 bail and is scheduled to appear before Milimani Court today.

    The arrest comes amid a complex web of litigation surrounding the prime agricultural land, located 5 kilometers from the Gala River banks in Kilifi County.

    Hassan’s legal team at Osundwa and Co Advocates dismissed the arrest as intimidation tactics designed to silence their client’s claims to the disputed property.

    According to court documents, Sahal Agro-Holdings secured a 16-year lease for the Galana Ranch/Block 1/1 parcel on May 19, 2021.

    However, the company later discovered that ADC had allegedly leased the same land to Mombasa Cement Limited, triggering the current legal battle.

    The dispute traces back to 2015 when the government temporarily suspended Sahal’s operations to install irrigation infrastructure for the broader Galana Kulalu project.

    Hassan’s company claims this pause was exploited to illegally transfer their lease rights to another entity.

    The Directorate of Criminal Investigations (DCI) has been pursuing Hassan since April 2024 on charges including forgery, creating false documents, and conspiracy to commit felony – all related to the Galana Ranch title.

    Presidential connection complicates case

    The controversy gained national attention during President William Ruto’s Diwali address last October, where he revealed that the late businessman Hasmukh Kanji Patel had invested between Sh3-5 billion in the project without formal lease documentation.

    “He told me, Mr President, I want to help you in Galana. I feed many people and I want to grow food,” President Ruto recounted, explaining how Patel proceeded with development based solely on presidential approval, constructing eleven mega dams before securing formal paperwork.

    Hassan has secured multiple court orders protecting him from arrest.

    Justice Mugure Thande initially blocked DCI action in October 2024, followed by fresh orders from Justice Bahati Mwamuye in December.

    The most recent court order restrains authorities from “arresting, detaining, charging, causing the plea taking of, prosecuting, or continuing the prosecution” of Hassan regarding matters touching the disputed title.

    The Galana Kulalu Food Security Project represents one of Kenya’s most ambitious agricultural initiatives, designed to boost national food production and reduce import dependency.

    President Ruto recently inspected completed works at the site on May 16, 2025, highlighting the project’s continued government priority despite ongoing legal challenges.

    The case underscores broader questions about land allocation transparency in major government projects and the balance between investor protection and state interests in strategic agricultural developments.

    Hassan maintains his company holds exclusive rights to the 16-year lease commencing May 2021, setting the stage for what could be a prolonged legal battle over one of Kenya’s most valuable agricultural parcels.

  • Private Investor to Inject Sh12.5 Billion into Galana-Kulalu Food Security Project

    Private Investor to Inject Sh12.5 Billion into Galana-Kulalu Food Security Project

    Nairobi, Kenya – In a significant stride towards enhancing national food security, the Kenya Kwanza administration has announced a substantial investment in the long-troubled Galana-Kulalu project. Selu Limited, a special-purpose vehicle, has been awarded 20,000 acres under a Public-Private Partnership (PPP) deal, with plans to invest Sh12.5 billion to revitalize the initiative.

    The National Treasury’s Draft 2024 Budget Policy Statement outlines this investment as part of a broader strategy to mobilize Sh64.5 billion from three key PPP projects by June this year. The Galana-Kulalu project is expected to contribute significantly to this figure, alongside the 35MW Orpower Geothermal Project and Africa 50 transmission lines.

    Selu Limited’s involvement aims to transform the agricultural landscape by producing 720,000 bags of maize and 160,000 bags of soybeans annually over the next 30 years on the allocated land. This partnership represents a new chapter for the project, which has been marred by setbacks since its inception in 2013 under the Jubilee government.

    The project’s history includes a notable fallout with Israeli contractor Green Arava in 2020, who left after disputes over payment despite receiving Sh5.9 billion from a Sh6.35 billion loan. Despite this, the government maintains that the taxpayers’ investment was not squandered, emphasizing that substantial groundwork had been completed on a 10,000-acre model farm.

    However, the model farm’s productivity has been underwhelming, with only 119,000 90-kilogramme bags of maize produced in 2019, falling far short of the projected Sh1.2 billion per season in sales. This discrepancy has fueled skepticism regarding the project’s feasibility and cost-effectiveness.

    The Galana-Kulalu Food Security Project, spanning across Tana River and Kilifi counties, is seen as crucial for addressing Kenya’s chronic food insecurity. By leveraging private investment and expertise, the government hopes to bridge the gap between food production and consumption, thereby reducing hunger among millions of Kenyans.

    This latest development marks a pivotal moment for the project, aiming not only to improve agricultural output but also to restore confidence in one of Kenya’s most ambitious food security schemes. The success of this venture could set a precedent for future PPP initiatives in the country, emphasizing the potential of strategic partnerships in overcoming infrastructural and operational challenges in public projects.