Friday November 13, 2009 | BUSINESS DAILY

Seeds of Discord
THE SECRETS OF KENYAS LAND SETTLEMENTS

Friday, November 13, 2009

BUSINESS DAILY

How civil sevants schemed fo beach plots

In this nal piece, JOHN KAMAU reveals how powerful
public ofcials colluded to circumvent President
Kenyattas reluctance to allocate more land at the Coast

nteresting schemes by the political elite marked Kenyattas last

days in power.
One such stratagem aimed at unlocking the logjam that the old man
had created in the beach plots acquisition channel. He had suddenly become reluctant to approve any more
applications for land, a development
that worried PC Eliud Mahihu who
also took it as his responsibility to nd
a way round the problem.
Mahihus solution was simple.
He ordered the provincial surveyor
to carve out an additional 9.056 acres
in Nyali in favour of the president. The
deal was aimed at softening the presidents heart and getting him to start
signing the papers once again.
Two months earlier on September 21, Mahihu had met the Commissioner of Lands Mr Njenga, PS in
the Oce of the President Georey
Kariithi and Lands PS J.G. Kibe at
Harambee House.
The agenda of the meeting was
telling. It was to consider the administration of beach plots as there
has been a delay in dealing with them
because H.E. the President is not in a
position to give his consent.
It is not clear why Kenyatta was
not in a position to approve the applications. The meeting asked Mr
Njenga to come up with suggestions
on the administration of beach plots.
He led a report marked Secret on
September 24.
The report shows how the four
civil servants schemed to circumvent Kenyattas signature in the allocation of some beach plots. Their
intention was to propose to the president to exempt some of the beach plot
transfers from getting his approval,
especially those involving agricultural
and trust land.
They also wanted sales by non-citizens, citizens of non-African origin
and by citizens of African origin to
citizens of African origin to be considered by a committee properly
constituted and to be chaired by the
Provincial Commissioner.

Njenga admitted that

such a Committee would
not have any legal backing but added: We however have District Plot
Allocation Committees
which consider allocation of plots in various urban areas.I have issued
letters of allotment on the
strength of their recommendations
Under that scheme, Kenyatta would be left with the
role of vetting only sales to
non-citizens and citizens of
non-African origin.
It is not clear whether Mahihu and Njenga decided to give the
Kenyatta family a beach plot to secure his indulgence but records show
that two weeks after the Harambee
House meeting, Mahihu sent copies
duly signed by Mama Ngina Kenyatta
to Njenga for a beach plot title.
He informed his four colleagues on
the developments thus: As discussed
and agreed I presented the certicate
of title and I was requested to get the
bit which she (meaning Mama Ngina)
has a beach surveyed and as soon as it
has been completed I make full details
at which we shall be able to demand
the money for the other certicate,
wrote Mahihu to Njenga.
Njenga appears not to have got
any feedback on his suggestions but
Mahihu went ahead to instruct the
Provincial surveyor to carve out some
9.056 acres for Kenyatta in Nyali.
The Provincial Commissioner
informed me that the title deed was
required urgently, and I hope he has
contacted you over the issue, wrote
A.K. Njuki on behalf of the director
of surveys.
Later, Mahihu even as he was
scouting for land for Kenyatta wrote
to Njenga and agreed with his proposals. He also told him: I am preparing
other proposals as I told you which
I would like to put to his Excellency
the President for approval and signature. If the Map (of the beach areas)

Former First Lady Mama

Ngina Kenyatta. FILE

is ready,
please let me know so that we can
have a joint trip to try our luck. He
copied this letter to G.K. Kariithi.
The transactions he managed to
get to Kenyatta included his personal
acquisition, through Mumi & Co Limited, of 7 acres in Mombasa between
Malindi Road, public beach track and
Coraldene track and an additional 3
acres at the same location. Kenyatta
approved the sale and acquisition on
February 8, 1977.
Mahihu was happy to get the approval and quickly wrote to Njenga as
he forwarded copies of consent revealing why he was worried that Kenyatta
was not approving beach plots.
I also enclose drawings submitted
by the Survey Department, which we
also discussed on the plot near Bamburi behind Coraldene Hotel and has
also been allocated to me by H.E. the
President.
I also enclose some drawings
provided by Physical Planning Department as requested by you dealing with the plots in Lamu that were
the subject of our earlier discussion.
I would be grateful if you let me have
the necessary approvals. Finally, I attach some sketch drawings showing
plot No 1309 Kisauni, consent which
I had forwarded to you earlier.
Mahihu managed to get Kenyattas approval of Rift Valley PC, Isaiah
Mwai Mathenges application. Mr
Mathenges company Dunia Invest-

ments bought a 320

acre plot, together
with all the buildings and improvements in Shimoni, Mombasa from
Shamshudin Damani at a price of
Sh175,000.
At other times it required the intervention of powerful gures to get even
Mahihu to sign the applications. One
letter from Charles Njonjo displays
the rush to acquire properties.
Dear PC, he writes with his green
pen, You must know Mr Ndibo. He
is anxious to buy this
land quietly. Please
help him by getting
Mzee to sign the enclosed document. The soonest
the better, otherwise Ngei will produce other buyers and confuse the
issue, wrote Njonjo in
the letter dated
April 22, 1977.
Whoever
Mr
Ndibo
was is not clear
but
Mahihu
wrote back on
May 23 saying that
Mr Ndibo was brought down to see
Mzee by the Eastern Provincial Commissioner, Mr Koinange and the matter has been resolved.
Njonjo replied with yet another
form seeking Mahihus signature:
This is the other form I forgot to enclose with the other for you to deal
with as agreed between the three of
usGeithia Andu mucii (say hi to
the family).
The three of us was no doubt,

Njenga, Mahihu and Njonjo and the

greeting made such a transaction
personal.
Njonjo would also vouch for his
friends to get approvals especially
Mrs Bland who looks after the house
which I am building at Diani.
At times confusion was apparent
and in the haste that characterised
the beach plots approvals, land that
had been allocated to Mbiyu Koinange
was later given to Jeremiah Nyagah
triggering an exchange of letters.
By the time he died, Kenyatta
had created a new class of propertied civil servants and close allies at
the beach.
Moi picked the mantle from there
and announced that he would follow
in Kenyattas footsteps.

10

BUSINESS DAILY | Friday November 13, 2009

Seeds of Discord

Rules thown to the dogs in scamble fo Kenya

As powerful individuals
amassed land in the Coast,
it became a no-holds-barred
race in which applicants
resorted to any strategy to
enrich themselves

he would-be beach owners behaved like

kids in a candy store. They would use any
trick in the book to get Eliud Mahihus nod
for the prime plots and properties.
Eliud Mathu, Kenyas rst African legislator
and a former classmate of powerful Minister of
State Mbiyu Koinage at Alliance High School
in his application letter addressed Mahihu as
Ngarana a Kikuyu phrase used to catch the
attention of a namesake for favours.
While most applicants said they intended to
build cottages, hotels or residential homes others came up with ideas that bordered on fantasy.
Dr James Njoroge Itotia had one such idea. In
his application for a beach plot, Dr Itotia listed
the ground for seeking ownership of the land as
wanting a beach plot for pleasure.and make
a prot if possible.
Reasons did not seem to matter and Mahihu
promptly recommended the sale of four acres to
Dr Itotia in Mtwapa Creek.
But there was something else in Dr Itotias
application that elicited Mr Mahihus attention. In his application, he had revealed that a
Maj Heath was actually selling his estate in the
same location.
Whether this was the reason Mahihu quickly
approved Dr Itotias application is not clear but
records show that immediately thereafter the PC
wrote to Major Heath saying: I understand that
you have about ve acres to sell in Mtwapa Creek
area. Could you please let me have the details of
this as I have a number of people enquiring.
Transfer of Maj Heaths land was done with
speed. Five days later Mr Mahihu recommended the transfer of part of Heaths 2.088 hectares
plot to Fred Mati, then Speaker of the National
Assembly who had on March 22 asked him to
comment (meaning approve) and let me have
all the copies back.

Unidentied company
The other applicant who got part of Heaths land
was Mr John Godhard Mburu, then the Nairobi
PC, whose application for 2.094 hectares of beach
plot Mahihu approved on November 14, 1972.
Mburu also got an extra 2.04 acres in August
1973 in Mombasa mainland that belonged to
Margaret Etherington. This particular application was rst-tracked from Mombasa and sent
to Nairobi within a day.
The next day Mahihu announced the new
rules for acquisition of beach plots leaving those
with pending applications in a x. Those who
were close to the seat of power however managed to get past the bureaucracy.
One such individual was former State House
comptroller Eliud Wambu Mathu.
Mr Mathu, who was Kenyattas private secretary and comptroller had the Commissioner of
Lands approve his transaction but was forced to

Above: Mbiyu Koinange. Right: Eliud Mahihu and

below: Joseph Murumbi. FILE

seek Mahihus nod. It was then that he wrote

the letter addressing Mahihu as Ngarana
You will recollect that during my last visit
to Mombasa, I discussed this question of the
purchase of property with you and informed
you that I have deposited 10 per cent of the purchase price. This was before you announced
the new procedure regarding sales of property
at the Coast.
Mr Mahihu replied to Mr Mathu saying
the matter is receiving his attention and when
he gave consent of purchase he wrote back
to Mathu: I have given the consent for you
to purchase this propertyproceed with the
other formalities.
Few people received such personal attention.
Interestingly, the acquisition of beach plots
was also an opportunity to transfer such plotsacquired individually - into limited liability
companies later.
Mahihu recommended one such transfer on
May 11, 1972 involving a 6.19 acre plot in Nyali
owned by James Njenga Karume then the chairman of the powerful Gikuyu, Embu and Meru
Association to an unidentied company.
Also on that bundle that was to be forwarded to Kenyatta via the Commissioner of Lands
was a recommendation that Neswa Investment
Limited, whose two shareholders were listed as
Samuel Njoroge Waruhiu and Dr James Sidney
Nesbit be allowed to buy 5.5 acres in Mombasa
North.
Interestingly, this was part of the land that
Mahihu had asked about in his letter to Maj
Heath.
Another beneciary was Kenyattas personal
doctor Dr E N Mngola who was given a go ahead
to purchase 1.084 acres of land previously owned

by a Mr Ken Robinson.
But not everyone who tried to get beach plots
got an automatic recommendation. In many cases
Mahihu simply put a note forwarded meaning
that it was up to the Commissioner of Lands to
decide whether such an applicant deserved a
beach plot.
A keen look at most of the forwarded applications shows that they belonged by Kenyans of
British origin and Asian ancestry.
The month of May 1972 had some interesting recommendations from Mahihu. One such
applications was from Isaiah Mwai Mathenge,
then the Rift Valley PC, who wanted to transfer
some 5.55 acres of land to Mwais Limited, where
he was a director. Also approved was the transfer
of a plot owned by Joseph Murumbi and his wife,
Sheila, who did not indicate to whom they wanted
to sell or transfer the land. Mahihu approved the
application anyway. After all, it had come with a
tag ex-vice president of Kenya

In cases where Kenyans formed

companies with other nationalities
to buy beach properties or plots it
appeared that such recommendations could not go through unless
the Kenyans held more than 51 per
cent of the shares.
Such was the case involving
Mr J Wanyoike of Jowan Properties Limited who had applied for
174 acres south of Malindi Town.
Mr. Wanyoike had teamed up
with two American nationals, J
G Butler and T S Bannister to develop a hotel.
In his recommendation, Mahihu said that the approval was
subject to Mr Wanyoike owning
more than 51 per cent shares.
While not all British citizens
managed to get a beach plot
transaction go through, the
sale of 2.5 acres of land belonging to Mrs Mary D Leakey to a
British national in Mtwapa South Creek was
approved.
Not everyone followed the laid down procedure of buying beach properties. Some approvals
would be received from the Lands Commissioner
even before Mahihu had made his remarks.
Senior civil servants also received Mahihus
attention as was the case of Mr DN Mbela, a permanent secretary who wanted to build a holiday
house on a half acre plot along the beach.
At other times, some of the company executives lobbied Mahihu directly to intervene.
Such was the plea that Mahihu got from Moody
Awori, when the latter pleaded on behalf of the
East Africa Industries to acquire property on
L.R. 1149/366.
I am wondering whether you would consider
our case being put to the President before the
documents are transferred, wrote Awori, then
EAI Secretary, on July 12, 1972.

Friday November 13, 2009 | BUSINESS DAILY

11

Seeds of Discord

Govenment ocials
cout Mahihu fo plots

o get a beach plot allocated,

an interested person needed
some tricks whatever his position in society.
In picking Mahihu as the only person with the authority to allocate the
plots, Kenyatta had made it nearly
impossible for ordinary mortals to
buy the same plots even if they had
the money.
But things were not so easy either
for the elite. Mahihus rm grip on the
beach plots assignment forced even
powerful members of the Kenyatta
government to plead with him in native Kikuyu language to get the land.
Contents of Mahihus ocial les
on the beach plot transactions indicate
that use of vernacular by the Kenyatta
era elite was common while seeking
favours from fellow members of the
powerful class. Charles Mugane Njonjo the Attorney General and Duncan
Ndegwa, the Central Bank Governor,
were among those who found it tting
to seek Mahihus personal indulgence
in their applications for the plots.
Their eort was not in vain as
they are today some of Kenyas richest people.
It was only last year that Ndegwa
hosted both President Kibaki and
Prime Minister Raila Odinga in his
Mombasa Continental Resort which
had just undergone a facelift. And
for the record, the trio took a picture
from the balcony watching the Indian
Ocean horizon. Acquisition of such
plots did not however come easily. It
required personal calls to Mahihu and
a high position in government.
Njonjo did the extraordinary. The
powerful AG would write letters on
ocial government letter-heads in
both English and Kikuyu to Mahihu
to catch the PCs attention.

In one of the letters, Njonjo used

an interesting mix of English and
Kikuyu asking Mahihu to approve a
land transaction in his favour.
Dear PC, he wrote: If you will recommend this. I will hand them back
to Njenga (Commissioner of Lands).
Turenda guthondeka development na
twina Singh uria unjakagira (we want
to develop this property and we are
with Singh, my contractor) and it is a
good and viable project. All the best
and when you have signed it please return it to me Yours Charles Njonjo.
The letter is only dated Monday
but reached Mahihus oce on May
6, 1978.

Promptly approved
Mahihu promptly approved Gurdev
Singhs Dee-Dee Development Companys application to acquire eightand-half acres of beach land.
Two days later he also approved
Kenneth Matibas purchase of ve
acres in Nyali Estate and nine days
later dished out 2.6 acres at Nyali in
favour of Duncan Ndegwa.
That month, the PC also approved
the purchase of a 2-acre Central Bank
of Kenya plot by Cianda Estates Limited of James Njenga Karume and
Wariara Njenga for Sh400,000.
Ordinarily, the registrar of titles in
Mombasa ought to have received all
the applications and forwarded them
to the Commissioner of Lands. But, in
some instances, the applicants themselves took the forms directly to the
Commissioner of Lands.
The list of those who chose to move
their applications by themselves included politician J.F.C. Munene,
former Kigumo MP, Rose Holiday
Cottages, Dee-Dee Investment, Rahab Mumbi, Kenneth Matibas Alli-

President Kibaki with Prime Minister

Raila Odinga and Tourism minister
Najib Balala are shown a view of the Indian ocean by the chairman of Kenga
Equatorial Hotels, Mr Duncan Ndegwa
after he ofcially opened the Mombasa Continental resort in Mombasa.
FILE

ance Development, Duncan Ndegwa,

T.P. Kiambi and Andrew Ngumba.
But besides Mahihu, many top
government ocials always saw their
meeting with Kenyatta as opportunities to get approvals for beach plots.
As he forwarded his application
to Mahihu, an Oce of the President
under-secretary Chris Kahara wrote
at the bottom of the letter: While I
have an opportunity to see the president to grant consent for that farm, I
thought I might take the opportunity
to also obtain consent for the Nyali
property.
Kahara and his wife Agatha wanted
to use their company, Wangeka Limited to buy a 5.83 acre land for Sh1
million in Nyali and a 3.28 acres piece
in Diani for Sh140,000 that was previously owned by Mrs Reaby Wailes.
Mahihu approved both sales.
Mr Kahara was in constant touch
with Mahihu and his forms would be
returned to him directly for presidential consent. That happened, for
instance when he wanted to acquire
4.2 acres of land previously owned
by Bamburi Beach properties in July

1974. This is really the purchase of the

company plus its assets, he writes in
support of his application. the sale is
from an Asian to an African.
The deal was approved by Mahihu
and the forms returned to Mr Kahara
on July 31.
John Michuki, who was then PS at
Treasury, also got a 25 acre beach plot
in Tiwi allocated in his favour through
his company Sleep-Ezee Limited.
Another interesting sale was that
of 5 acres by Kenyattas brother-in-law
and State minister Mbiyu Koinange in
the December of 1975 while Kenyatta
was at the coast for holidays. Mahihu
signed the forms on December 16,
1974 and the old man immediately
got Kenyattas consent.
Taking a trip to the coast to secure Mahihus audience was a norm.
Once Mahihu trusted you, there was
no limit to the number of plots you
could get. Dr Christopher Obura, a
well-known Nairobi dentist, was one
such person.

Forwarded application
Records show that in June 1974 he
travelled to Mombasa to see the PC
because he wanted a beach plot. Dr
Obura was given an application form
to acquire 2.5 acres in Tiwi. In due
course we will apply for subdivision
of land, Dr Obura wrote and put the
value of the land as Sh94,000.
In his note to the Commissioner
of Lands, Mahihu wrote: I would be
grateful if you could please forward
Dr Oburas application (to President
Kenyatta).
Dr Obura has been to see me enquiring when his application would
be completed. I have forwarded new
forms once again for your attention
as we did some time back.
By 1978, Dr Obura owned some 20
acres of land in Diani Beach and sold
them to Mutuality Investment Trust
Limited for Sh200,000 whose directors were Samson Muriithi Nduhiu
and Mary Muriithi.

Regista
ignoed in
popety ush

owerful civil servants went directly to Eliud Mahihu to seek approval for the purchase of beach
plots and circumvented the registrar of
titles ofce which was supposed to receive the applications from the Provincial Commissioner, we can now reveal.
When Stanley Munga Githunguri, the
current MP for Kiambaa and a wealthy
businessman wanted to acquire 1.16
acres of the subdivided L.R.1536 in the
area known as Mombasa mainland
north from Thammo Holdings Limited
owned by F.T. Nyammo, now MP for
Tetu, he followed his application to
Eliud Mahihus ofce on July 2, 1973.
It was one of the few cases where
Mahihu put strongly recommended
comment on an application.
Documents show that he left one of the
copies in Mahihus ofce which has a
note still attached that the original was
taken to the registrar of titles by Mr
Githunguri himself on July 2, 1973. The
note is signed by Ellen Machau.
It was one of the cases where government ofcials did not follow the laid
down procedures and used their ofces
to transact business.
Another application marked strongly
recommended dated July 20, 1973 belonged to James Kanyotu who was interested in a 1.93 acre in plot 985.
In a note to the Registrar of titles dated September 1973 on the Kanyotu
and Githunguri plots, Mahihu wrote:
Please note that the original forms for
the above plots were taken personally
by the owners to Nairobi.

Race fo eal estate at the coast spills into Nyayo ea

he death of Jomo Kenyatta on

August 22, 1978 was a big blow
to those with pending applications for beach plots.
Earlier attempts by Mahihu as reported in this series to have the rules
changed to give him absolute powers
over the transfer of beach plots did not
materialise.
Business Daily has traced the hitherto unseen condential letter a graying carbon copy from Eliud Mahihu
to the powerful Permanent Secretary,
Oce of the President, Mr Geofrey
Kariithi, which displays the fear that
Kenyatta-era civil servants had after
Moi took over power and their concerns
over the beach plots.
It can now be revealed that On November 14, 1978 some 100 days after
Kenyattas death, President Moi rang

Mahihu saying that when he (Moi) gets

back to the coast, I (Mahihu) should
remind him (Moi) to organise an ocial
gazettement of the Government policy
to control the beach plots. Wrote Mahihu to Kariithi.
Moi was to make his rst visit to
Mombasa, as acting president, on November 25. Mahihu was planning a big
welcome at the Mombasa Municipal
Stadium by ordering all businesses to
close. Mahihu had called Kariithi, the
powerful PS and Head of Civil Service,
and left a brief message with the secretary. The letter was drafted the following day and displays Mahihus fear
after Moi told him that they would have
a new policy on beach plots. Perhaps
what was in the mind of the president is
the impression that the beach control is
no longer there which, of course, gives

the impression that the policy which

was thought by the founding father of
the nation, Mzee Jomo Kenyatta, is no
longer in existence.

A lot of things happening

He went on, ... there appears to be a lot
of things happening and especially in
the newspapers, that the name of the
late President should be protected at all
costs... The people that Mzee helped in
good faith were to deal with the procedures of the land to full Mzees wishes,
but a number of these people never did
it and as a consequence, it is important
that people should be made aware that
nobody should be going around quoting Mzees name to cover up his weaknesses.
Mahihu did not last long as Coast PC
and was replaced by Lucas Daudi Gal-

galo. It appears from the records that

very few transactions took place after
Kenyattas death and it was not until
1981 that Mr Galgalo asked the commissioner of lands, J.R. Njenga, whether it
was true that the transfer of beach plots
required presidential consent.
In his letter dated July 1, 1981, Njenga
said it was true. I am currently preparing a proforma we were using during
the period 1973-78, he said, meaning
that no other transaction had taken
place in between.
Njenga sent the forms on August 20,
and some of the rst applications he
approved belonged to Abubakar Madhubuti, a coast MP, and that of Archie
Mbogo, the permanent secretary in the
Ministry of Constitutional and Home
Aairs. Soon those close to Moi started
edging towards the beach plots. In a

letter dated November 20, 1981 Mois

private secretary Abraham Kiptanui
wrote to acting Coast PC J.K. Etemesi
thanking him for providing him with
forms for the plots.
I shall be grateful if you could endorse the attached form for me to enable me to pursue purchase with the
commissioner of lands. I hope you can
hand it back to the bearer
According to the documents, Kiptanui wanted to buy six acres in the
South Coast on LR 209/205 owned by
Miss Anne Scordoulis. He listed the purchasers names as Mrs Mary Kiptanui
and Mrs Susan Ngeny.
Another interesting transfer recommended by Galgalo was a beach plot to
the estate of the late Peter Muigai Kenyatta by one Samson Mureithi Nduhiu.
Finally, Moi had taken over.