EPZA Lost Ksh 78 Million and Nine Years to One Kwale Land Dispute

Key Data

EPZA held 773 hectares nationally; 34 hectares were 'encroached on and/or lacked titles' (p. 57). A single Kwale County dispute 'lasted for 9 years, led to estimated loss of 78 million for lack of use and delayed to onboard a ready Chinese investor' (p. 57). EPZA is using the new policy to 'acquire and regularize 1,553 acres of land in 4 counties' and 'process recovery of USD 3,959,506 from debtors on land leases' (p. 58). The NLC 'is represented in the EPZA board' and 'spearheaded the joint NLC and EPZA development of the policy' (p. 57).

What Is Happening

The report records a case study of institutional land mismanagement and its remedy. EPZA's 2009 land policy 'had failed to address emerging land dispute challenges' (p. 57). The result: 34 hectares encroached, a nine-year dispute in Kwale, an estimated Ksh 78 million loss, and a Chinese investor turned away.

The NLC and EPZA jointly developed a new Leasing and Licensing Policy in 2024. The report states the policy 'establishes the principles to be applied for the acquisition, titling, leasing and licensing of EPZA owned land or EPZA managed land or private land declared to be EPZA zones' (p. 57). EPZA is already using it to recover USD 3.96 million from lease debtors and to regularize 1,553 acres across four counties (p. 58).

Why It Is Happening

The report attributes the problem to the prior policy's failure: 'The 2009 authority land policy had failed to address emerging land dispute challenges and to leverage on legislated operational and administrative linkages of the roles of various internal and external actors for optimum land protection and revenue generation' (p. 57).

CounselConnect's inference: EPZA is not the only agency with this problem. The Exit Report lists Kenya Railways, KPA, TARDA, KenGen, NHC, KAA, and others in its valuation and advisory tables (Table 3.19, pp. 49-50). Each holds public land subject to similar risks.

Practice Impact and Revenue

CounselConnect's reading: the EPZA template is replicable. Government agencies and parastatals holding public land need legal support to develop their own leasing and land-management policies aligned with NLC guidelines. The report shows the NLC's willingness to partner with agencies on policy development (p. 57).

CounselConnect's reading for lease disputes: the USD 3.96 million debt recovery (p. 58) signals that agencies are now actively pursuing defaulting lessees. If your client leases land from a government agency, verify that lease terms and rent payments are current.

Revenue Impact

CounselConnect's opinion (not financial advice): two revenue channels. First, policy-development advisory for government agencies developing leasing and land-management policies, using the EPZA template as a reference. Second, debt-recovery work as agencies pursue arrears from lessees. Fee structures must comply with the Advocates Remuneration Order.

Strategic Insight — What Most Advocates Will Miss

CounselConnect's reading: EPZA is one agency. Kenya Railways, KPA, TARDA, KenGen, NHC, KAA, and dozens of other state agencies hold public land and face identical challenges — encroachment, disputed boundaries, outdated lease terms. The Exit Report lists them all (Table 3.19, pp. 49-50). CounselConnect's opinion: the advocate who approaches a state agency proactively with a proposal to develop an NLC-aligned land-management policy, referencing the EPZA template, can create an entirely new advisory relationship. This is strategic reading, not legal advice.