DELVE INTO AFRICAN WEALTH
DON'T MISS A BEAT
Subscribe now
Skip to content

Kenyan businessman Narendra Raval’s $85 million plant hits snag over lease conflict

Land dispute stalls Kenyan businessman Narendra Raval’s iron plant in Voi as county disowns lease, citing illegal leadership deal.

Kenyan businessman Narendra Raval’s $85 million plant hits snag over lease conflict
Narendra Raval, founder of Devki Group

Table of Contents


Key Points

  • Raval’s $84.7M iron plant faces delays after Taita Taveta County disowns the land lease granted for the Voi-based project.
  • Devki lease signed by disputed group, as rival factions within Kishushe Ranching Society battle over leadership and land rights.
  • County claims no consultation occurred, raising legal concerns and stalling Devki’s mining start scheduled for December 2024.

Less than nine months after breaking ground on an ambitious Ksh11 billion ($85 million) iron ore pelletization plant in Voi, Taita Taveta County, Kenyan businessman and industrialist Narendra Raval is now entangled in a growing dispute over the land at the center of the project.

Kenya county disputes Devki lease

Raval, one of Kenya’s most prominent industrialists and the founder of Devki Group, secured a 45-year lease for 14,500 acres from a faction of the Kishushe Ranching Cooperative Society. But the deal is now under scrutiny. 

This week, the Taita Taveta County Government said it does not recognize the lease. Christine Zighe, the County Executive for Lands and Mining, stated the county was never consulted. “We have not seen the lease documents, and if they exist, we do not recognize them,” she said.

Danson Mzenge, the County Executive for Agriculture and Cooperatives, went further, claiming the lease was granted by individuals with no legal standing. “The officials who gave out the lease are imposters,” he told reporters. “The ranch is in the middle of leadership wrangles, and none of the groups involved has the authority to make such decisions.”

Devki lease sparks ranch leadership rift

Kishushe Ranch, which spans more than 60,000 acres, has been locked in internal battles for years. According to county officials, three rival factions claim to be in charge. One, led by Chombo Shete, reportedly represents about 700 shareholders but is said to have overstayed its leadership term. Another, headed by Matilda Mwangondi, filled the leadership vacuum. The third, led by Danson Kidai Mwandoto and backed by about 330 members, is the group that signed the lease with Devki.

According to Mzenge, Kidai’s group held a meeting attended by only 45 people, where they agreed to lease the land. “That AGM was illegal. It didn’t meet the legal requirements under the Cooperatives Act,” he said. He added that the county government can’t step in to resolve the dispute because one of the groups has obtained a court order preventing any interference.

While the legal battle plays out, attention has shifted to how authorities are handling the situation. Reports have surfaced of police arresting and harassing ranch members who oppose the lease. Meanwhile, Devki’s lease, set to begin Dec. 1, 2024, gives the company rights to 14,500 acres. Under the agreement, Devki is expected to pay Ksh100 ($0.80) per tonne of extracted iron ore and Ksh50,000 ($387) monthly once commercial operations begin.

Raval’s manufacturing push hits roadblock

Devki Group, founded in 1986 by Raval and his wife as a small steel business in Nairobi, has grown into East and Central Africa’s largest producer of construction materials. Its subsidiaries—Devki Steel Mills, National Cement, and Simba Cement—play a central role in Kenya’s economy. The group’s business strategy has focused on boosting local manufacturing and cutting reliance on imports.

The new plant in Voi fits squarely within that approach. It’s projected to create 3,000 jobs within the first six months and eventually employ more than 14,000 people. Devki has also said it hopes to expand that number to 30,000 as operations scale up.

In addition to employment, Devki has promised to support local miners by offering equipment and a stable market for their output. The group currently contributes about Ksh2 billion ($15.4 million) in monthly taxes, a figure expected to rise once the Voi plant is fully operational. But for now, the future of the project remains uncertain. With the land lease mired in leadership disputes and county officials opposing the deal, Devki’s plans to begin mining may be on hold for much longer than expected.

Latest