CN Sugar Faces Land Fraud Probe as Busia Police Arrest Local Agent

By Our Reporter 

Police in Busia District have arrested and detained a local agent linked to CN Sugar Limited as investigations continue into allegations surrounding the company’s claim to thousands of acres of land.

Joseph Nyongeza, who is associated with disputed land in Dabani Sub-county, was arrested following complaints from residents who questioned the legitimacy of a land deal involving the sugar company.

Police confirmed that Nyongeza is being held at Busia Central Police Station under file GEF 56/2026 to assist with investigations into allegations of fraud and misrepresentation.

The arrest followed a protest by residents who reportedly sought the intervention of the Resident District Commissioner (RDC), describing the disputed acquisition as a scam and expressing fears of losing their ancestral land.

The controversy centres on CN Sugar Limited’s reported claim to approximately 16,830 acres of land in Busia District.

Local leaders have challenged documentation presented in support of the claim, raising questions about the ownership and legal status of some of the properties.

In a letter dated October 4, the LC1 Chairperson of Busumba A Village in Nangwe Parish, Dabani Sub-county, informed district and security authorities that Nyongeza did not own land in the area.

The letter, which was copied to the RDC, police and LCIII leadership, said the alleged lease to CN Sugar had created panic among residents who feared losing land they regard as ancestral property.

The dispute intensified during a field verification exercise conducted in October.

According to sources familiar with the exercise, CN Sugar representatives were expected to present four parcels that had initially been submitted for inspection on October 2 and 3. However, the company reportedly presented different properties during the verification exercise.

One of the properties introduced was an estimated 2,500-acre tract in Dabani associated with Nyongeza.

Sources said investigators found insufficient documentation to establish the company’s exclusive legal interest in the substituted properties. Among the documents reportedly missing or inadequate were land titles, registered leases, transfer records, approved survey plans and cadastral information.

Investigators are also examining how the company arrived at the overall figure of 16,830 acres and whether the interests of families and customary landowners had been properly addressed.

Preliminary findings reportedly established documentary links to only 170.337 acres, representing less than one per cent of the acreage claimed by CN Sugar and its associated entities.

The significant discrepancy has raised questions about whether false or misleading information may have been presented to the Ministry of Trade, Industry and Cooperatives and the Sugar Council regarding the availability and ownership of the land.

Residents have expressed concern that disputed land transactions could result in the loss of ancestral holdings without adequate proof of ownership or compliance with land laws.