Dominion Farms chief executive Calvin Burgess has come under fire following his claims that Cord leader Raila Odinga sought money from him.
Mr Burgess recently said Mr Odinga and politicians allied to him were frustrating his business through extortion and threats of eviction.
He also accused Kisumu Deputy Governor Ruth Odinga - who is Cord leader’s younger sister - of pressing him to become a dealer in a prime plot.
On Friday, Nominated MP Oburu Oginga dismissed Mr Burgess’ claims.
Mr Oginga is the family’s spokesman.
Ms Odinga told the businessman “to stop being misused by Jubilee agents to discredit the Cord leader, his family and the Orange Democratic Movement”.
Security has been beefed up at Yala Swamp where the company grows rice.
Mr Peter Osigro Otando, 70, said the company had encroached on locals’ farms.
“Our people are not employed and ancestral lands have been taken away by the investor. Dominion farm occupies grounds where our grandparents were buried,” Mr Otando said.
Mr Elly Oduor Owino, a farmer, said chemicals sprayed by planes had destroyed his crops.
“We are not allowed to graze animals on parcels of land that are lying idle and are now squatters,” Mr Owino said.
But Mr Burgess said residents were being incited by leaders to invade his property.