The Siaya county government has given the green light for a new investor -- Lake Agro Limited, a subsidiary of the Rai Group of Companies -- to move into Yala swamp and takeover existing farms.
The decision by the Supreme Court's Court of Appeal gives the green light to Stanbic Bank Plc to dispose off Karuturi Limited assets as foreclosure to defaulted loans totaling to Ksh. 621 million in the flower farm's pre-receivership
A report by the Economist Intelligence Unit says land grabs are another common mechanism of corruption threatening Kenya's food security, citing instances where backdoor deals were used to secure land.
Kenya's Court of Appeal is in December expected to determine if Karuturi will pay Sh1.8 billion contested debt to Stanbic Bank before the dispute before High Court is determined.
Siaya county government has not surrendered the Yala swamp to a private sugar milling company as alleged by a section of the media, the county director of communications, Jerry Ochieng has said.
Kenya's court of appeal will rule on the 20th of December on the ownership of the Karuturi farm which was put under receivership over a debt it owed one of the banks.
As announced as part of Prime Minister Theresa May's visit to Africa, the Department for International Development will provide a further £55m to support AgDevCo's mission to create jobs, improve food security and boost prosperity in Africa.
Naivasha-based flower firm Karuturi has sued Stanbic Bank and four receiver managers for allegedly thwarting its revival through mismanagement and secret acquisition of loans.
The employees accuse CFC Stanbic of demanding more money than it lent to Karuturi, saying the South African lender is responsible for the poverty that struck their families since Karuturi was placed under receivership, 3 years ago.
