@DailyNation

Investor falls out with devolved unit over Sh17bn disputed land rates

1 months ago, 17 Nov 22:59

By: Nyaboga Kiage

A Lake Magadi investor has fallen out with Kajiado County government over disputed land rates running into billions of shillings.

Tata Chemicals Ltd, formerly Magadi Soda, which extracts thousands of tonnes of soda ash from the lake in Kajiado West Sub County, owes the county Sh17 billion for their 224, 991 acres for the last six years.

According to the county's current Finance Act, an acre of land is charged land rates Sh14,000 a year per acre.

The defaulted bill is being calculated from 2013, when devolution set in.

The county government has insisted on the investor paying the full amount or else it faces auction, while Tata Chemicals clings to a "gentleman's agreement" three years ago with the former County Government on reducing the rate from Sh14,000 to Sh120 per acre.

SECRET MINUTES

The secret agreement which is in form of minutes, would mean Tata Chemicals pays Sh27 million per year, and not Sh3.1 billion.

Tata Chemicals has always said the nature of the land they do business on is unique and it would not be tenable to charge them at theSh14,000 rate per acre annually like an ordinary land owner.

Mr Titus Naikuni, who remains the face of local interests in the company where he serves as vice chairman and a shareholder, has contested the county government's claim of land rates saying they had "already struck a deal" with the former county government to reduce these arrears to Sh160 million for the entire period.

REDUCE RATES

The county government has since considered reducing the rate per acre to Sh2,000 following proposals.

The February 2015 proposal also resolved to reduce the royalties payable to the county per tonne of soda ash from Sh120 to Sh10

However, Governor Joseph ole Lenku has dismissed the deal terming it "illegal and a ploy by characters to defraud the people of Kajiado."

Early this month with, the county government hired a tax collector to deal with big firms doing business in the county.

They are Tata Chemicals, East African Portland Cement, National Cement Company, Kenya Police Sacco and Jamii Bora Bank.

Mr Lenku has refused to recognise the "gentleman's agreement" between Tata Chemicals and his administration.

Tata Chemicals, in response through Executive Director, Harish Nair, has denied that the 2015 deal was fraudulent.

DENIED ALLEGATIONS

"We have worked with Kajiado County in a transparent and fair manner and we strongly deny allegations that we are or were part of any deals that were "an act of fraud," said Mr Nair.

The statement further noted that Tata Chemicals had always supported community initiatives and that they were bound by the firm’s code of conduct.

He reiterated that the lease rates had always been agreed from time to time to safeguard the existence of the company.

The push by the county government to have Tata Chemicals Ltd pay its rates has rattled the relationship between Governor Lenku and Mr Naikuni group.

In July, Governor Lenku nominated Mr Naikuni to the newly created Kajiado County Water and Sewerage Company.

He proposed the former Magadi Soda and Kenya Airways chief executive as the chairman amid protests ...
Read More


Category: topnews news

Suggested

31 minutes
@DailyNation - By: Afp
Gay Singaporean man wins right to adopt surrogate son

Landmark court decision in Singapore allows man to adopt a child he fathered. ...

Category: topnews news
1 hours ago, 14:59
@DailyNation - By: Wycliff Kipsang
Boinnet defends police killings in Kwanza, IPOA launches probe

IG says the police officers opened fire as more than 100 people confronted them. ...

Category: topnews news
1 hours ago, 14:59
@CITIZENTV - By: Reuters
U.N., Palestinians launch humanitarian appeal after funding cuts

The United Nations and the Palestinian Authority on Monday appealed for $350 million in humanitarian relief for Palestinians next year, saying that they needed more but had to be realistic in the face ...

Category: topnews news
1 hours ago, 14:59
@DailyNation - By: Newsplex Team
Best, worst communicators of 2018: Call for entries

Submission for deadline on midnight, December 28, 2018. ...

Category: topnews news
1 hours ago, 14:37
@CITIZENTV - By: Reuters
Nigeria’s farmer-herder clashes have left over 3,600 people dead, Amnesty says

Clashes in Nigeria between farmers and semi-nomadic herders have killed more than 3,600 people since 2016, most of them this year, Amnesty International said on Monday, in a report documenting an upsu ...

Category: topnews news
1 hours ago, 14:26
@CITIZENTV - By: Kenerickson Njeru
For coasting Kabras, the party comes after Christmas

The South African tactician expects their opponents to challenge their leadership even more robustly after Christmas ...

Category: topnews news sports

@DailyNation

Investor falls out with devolved unit over Sh17bn disputed land rates

1 months ago, 17 Nov 22:59

By: Nyaboga Kiage

A Lake Magadi investor has fallen out with Kajiado County government over disputed land rates running into billions of shillings.

Tata Chemicals Ltd, formerly Magadi Soda, which extracts thousands of tonnes of soda ash from the lake in Kajiado West Sub County, owes the county Sh17 billion for their 224, 991 acres for the last six years.

According to the county's current Finance Act, an acre of land is charged land rates Sh14,000 a year per acre.

The defaulted bill is being calculated from 2013, when devolution set in.

The county government has insisted on the investor paying the full amount or else it faces auction, while Tata Chemicals clings to a "gentleman's agreement" three years ago with the former County Government on reducing the rate from Sh14,000 to Sh120 per acre.

SECRET MINUTES

The secret agreement which is in form of minutes, would mean Tata Chemicals pays Sh27 million per year, and not Sh3.1 billion.

Tata Chemicals has always said the nature of the land they do business on is unique and it would not be tenable to charge them at theSh14,000 rate per acre annually like an ordinary land owner.

Mr Titus Naikuni, who remains the face of local interests in the company where he serves as vice chairman and a shareholder, has contested the county government's claim of land rates saying they had "already struck a deal" with the former county government to reduce these arrears to Sh160 million for the entire period.

REDUCE RATES

The county government has since considered reducing the rate per acre to Sh2,000 following proposals.

The February 2015 proposal also resolved to reduce the royalties payable to the county per tonne of soda ash from Sh120 to Sh10

However, Governor Joseph ole Lenku has dismissed the deal terming it "illegal and a ploy by characters to defraud the people of Kajiado."

Early this month with, the county government hired a tax collector to deal with big firms doing business in the county.

They are Tata Chemicals, East African Portland Cement, National Cement Company, Kenya Police Sacco and Jamii Bora Bank.

Mr Lenku has refused to recognise the "gentleman's agreement" between Tata Chemicals and his administration.

Tata Chemicals, in response through Executive Director, Harish Nair, has denied that the 2015 deal was fraudulent.

DENIED ALLEGATIONS

"We have worked with Kajiado County in a transparent and fair manner and we strongly deny allegations that we are or were part of any deals that were "an act of fraud," said Mr Nair.

The statement further noted that Tata Chemicals had always supported community initiatives and that they were bound by the firm’s code of conduct.

He reiterated that the lease rates had always been agreed from time to time to safeguard the existence of the company.

The push by the county government to have Tata Chemicals Ltd pay its rates has rattled the relationship between Governor Lenku and Mr Naikuni group.

In July, Governor Lenku nominated Mr Naikuni to the newly created Kajiado County Water and Sewerage Company.

He proposed the former Magadi Soda and Kenya Airways chief executive as the chairman amid protests ...
Read More

Category: topnews news

Suggested

31 minutes
@DailyNation - By: Afp
Gay Singaporean man wins right to adopt surrogate son

Landmark court decision in Singapore allows man to adopt a child he fathered. ...

Category: topnews news
1 hours ago, 14:59
@DailyNation - By: Wycliff Kipsang
Boinnet defends police killings in Kwanza, IPOA launches probe

IG says the police officers opened fire as more than 100 people confronted them. ...

Category: topnews news
1 hours ago, 14:59
@CITIZENTV - By: Reuters
U.N., Palestinians launch humanitarian appeal after funding cuts

The United Nations and the Palestinian Authority on Monday appealed for $350 million in humanitarian relief for Palestinians next year, saying that they needed more but had to be realistic in the face ...

Category: topnews news
1 hours ago, 14:59
@DailyNation - By: Newsplex Team
Best, worst communicators of 2018: Call for entries

Submission for deadline on midnight, December 28, 2018. ...

Category: topnews news
1 hours ago, 14:37
@CITIZENTV - By: Reuters
Nigeria’s farmer-herder clashes have left over 3,600 people dead, Amnesty says

Clashes in Nigeria between farmers and semi-nomadic herders have killed more than 3,600 people since 2016, most of them this year, Amnesty International said on Monday, in a report documenting an upsu ...

Category: topnews news
1 hours ago, 14:26
@CITIZENTV - By: Kenerickson Njeru
For coasting Kabras, the party comes after Christmas

The South African tactician expects their opponents to challenge their leadership even more robustly after Christmas ...

Category: topnews news sports
Our App