Deal #1374

Location #1

Spatial accuracy level
Coordinates
Location
Yala Swamp, Kenya

Latitude
0.020213100976823817
Longitude
34.16047922346195
Target country
Kenya
Comment on location
Bondo, Siaya, Nyanza, around Yala Swamps Office and administrative buildings.

Land area

Intended size (in ha)
17500
Size under contract (leased or purchased area, in ha)
[2003] 6879
Size in operation (production, in ha)
[2015] 810
Comment on land area
Conflicting info on actual size 6,000ha or 6,900ha. Local communities claim that the company acquired 3700ha. The local communities also claim that the company has taken over more than their allocated land (illegally taking the community land). Company claims it wants to have the whole swamp area which is 17,500ha. Company website states 17000 acres-6879ha

Intention of investment

Intention of the investment
Biofuels, Food crops, Livestock, Renewable Energy
Comment on intention of investment
The company plans to convert just over 2000ha to sugarcane plantations and also plans to build a mill. The company is already producing rice and tilapia fish.

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2003] Concluded (Contract signed)
[2019] Change of ownership
[2019, current] Concluded (Contract signed)
Comment on negotiation status
Leased transferred to a new investor in 2019.

Implementation status

Implementation status
[2006] In operation (production)
[2017] Project abandoned
[2019] Startup phase (no production)
Comment on implementation status
The status of the project hangs in the balance due to conflict between the investor and politicians in the area. There are claims that the investor is planning to relocate to Nigeria. Operations ceased in November 2017 and auctioning of property commenced in December 2017. Liquidator appointed in 2018.

Leasing fees

Annual leasing fee
1051781
Annual leasing fee currency
Kenyan Shilling
Annual leasing fee type
for specified area
Purchase price area
6000
Comment on leasing fees
pays KES 1,028,921 per annum to Siaya County Council and KES 22,860 per annum to Bondo County council (for the first 3 years and at an increasing rate every three years) as the leased land falls within the two jurisdictions

Contract farming

Contract farming
Yes
Not on leased / purchased area (out-grower)
Yes
Comment on contract farming
In line with the company's move to establish sugar plantations and a mill- Dominion also plans to buy sugarcane from residents who may choose to start their own plantations. The company started an outgrower aquaculture program.Company also planned to start community run rice program

Contract #1

Duration of the agreement (in years)
25

Number of domestic jobs created

Jobs created (domestic)
Yes
Planned employees (domestic)
1500
Current number of daily/seasonal workers (domestic)
[2003] 200
[2010] 60
Comment on jobs created (domestic)
after the initial period when the farm needed a lot of labour to clear the ground, the number of employees reduced tremendously from around 200 to about 60. Workers get exposed to pesticide during the spraying. The pay is irregular and sometimes late.

Operating company

Operating company
Comment on investment chain
Previously owned by Dominion Farms, and Dominion Group of companies (based in US). Leased transferred to a new investor in 2019. Rai Group/ Holdings is a conglomerate based in Kenya and Mauritius.

 

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Data source #1

Data source type
Research Paper / Policy Report
File
Date
2010-01-01
Comment on data source
FIAN International, "Land grabbing in Kenya and Mozambique"

Data source #2

Data source type
Media report
File
Date
2010-10-04
Comment on data source
Farmland Grab- Are they appropriate agricultural investments or land grabs?Depends on who you ask.

Data source #3

Data source type
Media report
File
Comment on data source
Google maps- Dominion Farm

Data source #4

Data source type
Personal information
Date
2015-11-26
Comment on data source
Exact Coordinates

Data source #5

Data source type
Research Paper / Policy Report
File
Date
2010-01-01
Comment on data source
GLP Report, International Project Office and authors

Data source #6

Data source type
Media report
File
Date
2014-10-27
Comment on data source
Farm Land Grab- Harvest of hardship: Yala Swamp land grab destroys Kenyan farmers' livelihoods

Data source #7

Data source type
Media report
File
Comment on data source
The Link- Dominion Farms, June 2011

Data source #8

Data source type
Media report
File
Date
2014-01-15
Comment on data source
Farm Land Grab- Swampy pool that has become a regional rice producer

Data source #9

Data source type
Media report
File
Date
2017-03-17
Comment on data source
Standard Digital- Why rice project is sinking in Nyanza swamp weeks after Raila accused of extortion

Data source #10

Data source type
Media report
File
Date
2011-01-01
Comment on data source
Media Diversity Centre- Issue050, Battle over the Yala Swamp

Data source #11

Data source type
Media report
File
Date
2011-10-26
Comment on data source
Friends of Yala Swamp website

Data source #12

Data source type
Research Paper / Policy Report
File
Date
2010-01-01
Comment on data source
Land grab in Kenya: implications for Smallholder farmers by P. Makutsa

Data source #13

Data source type
Media report
File
Date
2015-06-15
Comment on data source
Farmland Grab- American firm to invest in sugar milling and 5,000-acre cane farm

Data source #14

Data source type
Personal information
Includes in-country-verified information
Yes

Data source #15

Data source type
Media report
File
Date
2009-11-25
Comment on data source
Business week- Land Rush in Africa

Data source #16

Data source type
Company sources
File
Date
2008-01-07
Comment on data source
Overview of Dominion Farms

Data source #17

Data source type
Media report
File
Date
2010-12-10
Comment on data source
As World Food Day approaches, NGOs warn of increase in land grabs

Data source #18

Data source type
Company sources
File

Data source #19

Data source type
Company sources
File

Data source #20

Data source type
Media report
File
Date
2017-02-26
Comment on data source
Daily Nation- Rumours, truths and lies on Dominion Farm

Data source #21

Data source type
Media report
File
Date
2017-12-07
Comment on data source
Standard Digital- Dominion farms in new round of trouble

Data source #22

Data source type
Media report
File
Date
2017-02-17
Comment on data source
Standard Digital- Yala residents don't want Dominion Farms to close

Data source #23

Data source type
Media report
File
Comment on data source
Standard Digital- Job fears as Dominion firm stops operations in Kenya

Data source #24

Data source type
Media report
File
Publication title
Win for Siaya residents as county resolves to allocate Yala swamp
Date
2018-03-26
Comment on data source
Original data source URL link broken- https://www.the-star.co.ke/news/2018/03/26/win-for-siaya-residents-as-county-resolves-to-allocate-yala-swamp_c1735154

Data source #25

Data source type
Media report
File
Publication title
Dominion Farms property auctioned
Date
2018-04-07
Comment on data source
Original data source URL link broken- https://www.the-star.co.ke/news/2018/04/07/dominion-farms-property-auctioned_c1739964

Data source #26

Data source type
Research Paper / Policy Report
File
Publication title
The global farmland grab in 2016. How big, how bad?

Data source #27

Data source type
Media report
File
Publication title
Dominion Farms names liquidator
Date
2018-08-19

Data source #28

Data source type
Media report
File
Publication title
Questions arise about who has taken American investor’s estate
Date
2018-10-23

Data source #29

Data source type
Media report
File
Publication title
Fresh hope as new Investor lands at Yalla Swamp
Date
2019-02-15

Consultation of local community

Community consultation
Limited consultation

How did the community react?

Community reaction
Rejection

Presence of land conflicts

Presence of land conflicts
Yes
Comment on presence of land conflicts
Protests in September 2015 over plans to convert plantations to sugarcane and build a sugar mill.

Displacement of people

Displacement of people
Yes
Comment on displacement of people
The company has blocked the communities access to water and grazing land. The company is now using this land for grazing and selling the produce on the local market, undercutting the locals.

Negative impacts for local communities

Negative impacts for local communities
Displacement
Other
Comment on negative impacts for local communities
Losing access to potable water

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
$60 per home affected

Promised benefits for local communities

Promised benefits for local communities
Health
Education
Financial Support
Comment on promised benefits for local communities
agricultural training centre for the youth planned.

Former land owner (not by constitution)

Former land owner
Community

Former land use

Former land use
Smallholder agriculture

Former land cover

Former land cover
Cropland
Comment on former land cover
Swamp land

Detailed crop, animal and mineral information

Crops area
Banana, Rice, Sugar Cane, Vegetables (unspecified)
Livestock area
Aquaculture (animals), Cattle, Fish

Use of produce

Has domestic use
Yes
Has export
Yes
Comment on use of produce
The company is undercutting the local community in the local markets. The sugar will be for the local market.

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
The company is planning to establish a sugar mill.

Water extraction envisaged

Water extraction envisaged
Yes

Source of water extraction

Source of water extraction
Surface water (River)
Comment on source of water extraction
Yala river

Overall comment

Overall comment
The status of the project hangs in the balance due to conflict between the investor and politicians in the area. There are claims that the investor is planning to relocate to Nigeria.

June 25, 2019, 11:03 a.m.

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Feb. 15, 2013, 5:01 p.m.

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