The Ministry of Lands, Housing and Urban Development in Malawi has contradicted GM Properties Limited's position on compensation for households in 20 villages affected by the Kanengo Northgate Project. Principal Secretary Bennett Nkasala stated that GM Properties, not the government, is responsible for compensating the households because the project is a private commercial venture. This stance contrasts with arguments made by GM Properties' lawyer, Jefferson Luwa, that the government should bear or share the compensation costs.
A High Court judgement in Civil Cause Number 60 of 2024, delivered by Judge Howard Pemba in November 2024, identified the government as being responsible for compensation under the Lands Acquisition and Compensation Act. The court also established that GM Properties had undertaken to compensate affected villagers in phases under a 2006 agreement with the State. The ruling has raised questions about the relationship between the government's statutory responsibility and the company's undertaking.
The disputed land was initially public land before being leased to GM Properties for 99 years from September 1, 2005. The lease was registered on October 24, 2005, under Title Number Alimaunde 26/5. While the court declared GM Properties the rightful title holder, it acknowledged that some affected villagers remained uncompensated. The judgement cited a March 23, 2006 meeting between the government and GM Properties, where the company agreed to compensate affected people in phases.
Despite the court ruling, the dispute persists. In June 2026, GM Properties issued eviction notices requiring some residents to vacate by July 4. The company claimed the notices targeted residents of Kwindanguwo who had already received compensation. However, senior group village head Kwindanguwo disputed this, stating that people from about 20 villages were still awaiting payment.
On October 21, 2026, Nkasala reportedly delivered a directive on behalf of President Peter Mutharika, ordering GM Properties to compensate affected residents or risk losing its title. The directive followed a government meeting to review compliance with the November 2024 judgement. Nkasala warned that the government could revoke Title Number Alimaunde 26/5 if the company failed to meet its compensation obligations.
The controversy revives questions about the original acquisition of over 100 hectares for the Northgate project, conceived in 2005 as an upmarket residential development. The project was reportedly valued at $600 million but failed to take off as envisaged, with only one building reportedly constructed. Over 15,000 households from communities under Traditional Authority Chitukula remain uncertain about their future, more than two decades after the project was conceived.
The Ministry of Lands' position leaves unresolved the precise terms of the March 23, 2006 agreement and the legal basis for assigning compensation obligations to the developer. When contacted for clarification, Nkasala referred the questions to the ministry's legal counsel for guidance. GM Properties and its lawyer, Luwa, were also asked to clarify the company's compensation position but had not responded by press time.
Key points
- Government says GM Properties is responsible for compensating affected households
- Court ruling identifies government as responsible for compensation under Lands Acquisition and Compensation Act
- Dispute persists over compensation for households affected by Kanengo Northgate Project
