Kenya's cabinet freezes renewal of land leases

Kenya's Cabinet on Friday suspended renewal of all land leases until the National Land Commission is operationalised.

In the resolutions, which are likely to shake the confidence of investors in Kenya with vast plantations of cash crops, the Cabinet also ordered for an immediate review of all land land leases that were irregularly renewed.

"The Cabinet yesterday (Friday) resolved to freeze all renewals of expired land leases and review all those that may have been irregularly renewed with immediate effect, and until the Land Commission is operationalised. This includes renewal of leases for Public, private and trust lands," a statement from the Presidential Press Service stated.

Those to be affected by the decision include companies with interests in large scale production of tea, wheat, sisal as well as ranchers. Kenya is among world's leading tea exporting countries.

The Cabinet further halted the government and upcoming county authorities from any disposal of public asset pending a "comprehensive inventory."

"The Cabinet further resolved to freeze disposal of Public Assets by both the Central Government and Local Authorities during the transition period when a comprehensive inventory will be undertaken," the statement said.

The Cabinet's resolution came as President Kibaki reaffirmed the Government’s commitment to creating a conducive environment for the private sector to thrive.

Addressing members of the East African Business Council who paid him a courtesy call at his Harambee House office on Friday, President Kibaki said Kenya has embarked on implementing policy reforms geared towards promoting private sector investments in the country.

In this regard, the Head of State reassured the private sector that as the current chairman of the East African Community he will push for the removal of hurdles and adoption of the requisite regional policies that facilitate rapid economic growth.

President Kibaki said Kenya will particularly urge the East African Community Secretariat to fast-track the establishment of the regional Competition Authority to ensure a level playing field and fair business competition.