The government has announced that compensation for residents of Area 54 under Senior Traditional Authority (T.A.) Chitukula in Lilongwe will begin this Friday, with an initial allocation of MK2.2 billion.

This forms part of a larger MK22 billion package earmarked for the affected community.  

The move follows petitions from residents to the Ministry of Lands seeking clarity on a land development project after authorities disclosed plans to allocate the acquired land to Malawians living abroad as part of rural industrialization initiatives.

Ministry of Lands spokesperson Mphatso Mkuonera confirmed the initial disbursement, assuring that the remaining funds would be released in phases. 

“This is part of the government’s continued effort to ensure fair compensation for the affected residents," Mkuonera stated.  

As the compensation process begins this week, the residents' spokesperson -Biton Thuyathuya- welcomed the development but emphasized their expectation of full payment.

“While we appreciate this first step, we will closely monitor the process to ensure the remaining compensation is fulfilled as promised," Thuyathuya said.  

Residents had planned protests starting June 23, 2025, to demand payment but suspended the vigils following the government’s commitment.  

In a related development, the government revealed plans to establish Special Economic Zones (SEZs) on prime land in Blantyre, Zomba, Lilongwe, and Mzuzu to attract investment and infrastructure projects aimed at boosting economic growth. 

Authorities say the initiative will also address land compensation concerns in development areas.