Tension is looming in Sabaki, Kilifi County, after squatters invaded and subdivided 900 acres belonging to Agricultural Development Corporation (ADC) Kisiwani.
The squatters barricaded the Malindi-Lamu road paralysing transport services.
Led by Sabaki MCA Edward Kazungu Delle, the squatters said they resolved to repossess their ancestral land from 'tycoons' who allegedly colluded with the ADC ranch management to grab the land.
"Today marks the end of our tribulations, we are sharing the land since efforts to seek the intervention of the Ethics and Anti-Corruption Commission, National Land Commission (NLC) and the Director of Public Prosecutions fell on deaf ears," he said.
The Malindi Water and Sewerage Company (Mawasco) has already bought 25 acres of the land at Sh40 million to construct houses for its staff.
Mawasco managing director Gerald Mwambire on Monday dismissed the claims that he is one of those behind a scheme to grab the ADC land, saying they acquired the property legally.
Mr Mwambire showed the Nation some documents indicating the company was cleared by suspended NLC chairman Muhammad Swazuri on October 2, 2014 to acquire the land from Teber Limited.
"Due diligence was followed to acquire the land," he said.
Mr Mwambire further said squatters who used to lived in the said land were compensated Sh2.5 million and they have no problem with the project - which would see the building of modern housing, roads, a petrol station and schools.
Sabaki Residents Association secretary-general Stembo Kaviha said the squatters have evidence to prove the land was grabbed.
"We are bitter because our effort to seek help from the government to stop the grabbing has been unfruitful," he said, denying being compensated.
ADC Kisiwani management dismissed the land grabbing allegations.