Concerns Over Devki Group’s Expansion: Job Creation or Exploitation?

On August 4, 2024, Mining Principal Secretary Elijah Mwangi joined Taita Taveta County leaders, led by Governor Andrew Mwadime, to hand over land to the controversial investor Narendra Raval, chair of Devki Group.

This handover was for the construction of an 11 billion shillings iron-ore processing plant at Ngolia in Voi, Taita-Taveta County.

Raval pledged to involve local communities and artisanal miners in the project, yet he remains tight-lipped about all the minerals he aims to mine from Taita Taveta.

This lack of transparency, coupled with his reputation for coercive business practices, has raised significant concerns among Kenyans.

Devki Group’s Controversial Expansion

Narendra Raval, often referred to as “Guru,” is no stranger to controversy. As the founder and CEO of Devki Group, he has massively invested in Kenya, employing thousands and becoming one of the country’s top taxpayers.

Despite these contributions, his methods and the true benefits of his investments are under scrutiny.

The announcement of the iron-ore plant in Taita Taveta is just one of several projects Raval is pursuing across Kenya, including value addition for the gold value chain in Kakamega, granite in Vihiga, and fluorspar in Elgeyo Marakwet.

However, questions abound regarding the ultimate vision of these projects and whether they genuinely benefit Kenyans.

Lack of Transparency and Community Involvement

One of the primary concerns is the opacity surrounding the minerals to be extracted from Taita Taveta. While the focus has been on iron ore, locals and environmentalists suspect that rare minerals are also at stake.

Kenyans are demanding full disclosure and feasibility studies to understand the environmental and economic impacts.

Furthermore, they question why the government has chosen to hand over a title deed to a foreign investor without thorough public consultation or consideration of nationalizing the extraction and processing of these resources, similar to the oil models in Arab countries.

Environmental and Economic Impacts

The environmental impact of mining in Taita Taveta is another critical issue. Local communities fear that extensive mining operations will lead to environmental degradation, affecting their livelihoods and the ecosystem.

They are demanding comprehensive environmental impact assessments (EIAs) be made public, ensuring that the community’s well-being is prioritized over corporate profits.

Job Creation: A Hollow Promise?

Raval’s promise to involve local communities in his projects has been met with skepticism. While the creation of jobs is a positive aspect, the quality and pay of these jobs are in question.

Critics argue that Raval’s ventures often result in low-paying, precarious employment rather than sustainable, well-paying jobs.

This concern is echoed in other regions where Devki Group operates, with locals feeling exploited rather than uplifted.

Devki Group’s Influence and Political Ties

Raval’s influence extends beyond the business realm into the political sphere. His close ties with President William Ruto have raised eyebrows, especially given his controversial suggestions for constitutional amendments to extend Ruto’s term.

Such proposals not only undermine Kenya’s democratic principles but also highlight the dangerous intersection of business and politics.

Unfair Competition and Monopolistic Practices

Raval’s dominance in the cement and steel industries has also drawn criticism. Kenya’s cement manufacturers have protested against what they see as a skewed tax regime favoring Devki Group.

The Finance Act 2023, which includes a 37.5% tax on imported clinker and steel, is perceived as a move to grant National Cement, a Devki subsidiary, a monopoly.

This has led to the collapse of other local firms and a significant increase in cement prices, further straining the economy.

Devki Group’s Expansion, Community Resistance and Legal Battles

Devki Group’s expansion has not been without resistance. In Kitui County, plans to set up a cement factory have been stalled due to protests over unpaid compensation.

Residents of Ngaaie location, rich in limestone deposits, have threatened legal action to ensure they are compensated fairly for their land and developments.

This standoff underscores the broader issues of corporate accountability and community rights.

Call for National Mining Company

Amidst these concerns, there is a growing call for the establishment of a national mining company. This entity would oversee the extraction and sale of minerals on behalf of the country, ensuring that profits benefit the nation as a whole rather than a select few.

Such a model would also enhance transparency and accountability, providing Kenyans with the information and assurance they need.

Conclusion: A Call for Transparency and Accountability

The handover of land to Narendra Raval and the subsequent establishment of the iron-ore processing plant in Taita Taveta have sparked a national conversation about the true costs and benefits of such investments.

While job creation and economic growth are essential, they must not come at the expense of transparency, environmental sustainability, and fair treatment of local communities.

Kenyans are right to demand answers and accountability, ensuring that their natural resources are managed in a way that benefits all, not just a powerful few.

As the country moves forward, it is crucial to balance industrial growth with democratic principles and social justice, safeguarding Kenya’s heritage and future.