A bus terminus dispute between the national government and the Kiambu County Government has taken a twist after a court ordered the county to surrender revenues collected from matatu operators since 2018, dealing a significant blow to the devolved unit's finances.
The verdict, delivered by Justice Jacqueline Mogeni at the Environment and Lands Court in Thika, requires the county to remit the money to the Postal Corporation of Kenya (PCK), which is claiming to be rightful of the land that the county converted to a matatu stage.
This marks the latest development in an eight-year legal battle over the prime land in Kiambu town. The dispute centres on the ownership of a land parcel registered as Kiambu/Municipality Block 2/284, which PCK claims as its property.
The state corporation alleges that the county government illegally converted part of the land into a bus terminus in 2018 and has been collecting fees from matatu operators without legal authority.
Kiambu Bus Park on June 16, 2018.
Photo credit: File | Nation
The corporation sued in 2017, prompting Justice Lucy Gacheru to issue an injunction on July 13, 2018, barring the county from operating the bus stage, cutting trees or demolishing structures on the property or collecting revenue from matatus.
The court had also ordered that the status quo be maintained and "the status quo is the one that existed before the bus stage was allowed to operate on the suit property", pending the determination of the case.
The corporation argued that the county had no legal claim to the property and was unlawfully collecting fees from matatu operators.
Despite these orders, the county government allegedly continued operating the terminus and collecting revenue, leading to a contempt of court application filed in March 2025 by the Postal Corporation.
It alleged continuous defiance by the county, including ongoing construction and revenue collection.
Through Ms Jane Masara, the Company Secretary, Postal Corporation stated that this amounted to wilful disobedience of court orders and urged Justice Mogeni to cite Governor Kimani Wamatangi and County Secretary Peter Ndegwa in contempt.
However, Justice Mogeni ruled that while the county was aware of the 2018 orders, PCK failed to provide conclusive evidence such as dated photographs or sworn affidavits of service to prove recent violations.
"While the county admitted knowledge of the 2018 orders, the applicant failed to provide timestamped photographs or sworn affidavits proving fresh encroachment," the judge ruled, declining the contempt application.
However, she emphasised that the county had wilfully disobeyed the injunction, noting that court orders are not optional.
Stating that there was no valid excuse for the breach, the judge said the claims that negotiations were ongoing between the Postal Corporation and the county government did not absolve the county from compliance, as court orders must be obeyed regardless of pending talks.
The court granted PCK’s alternative prayer, compelling the county to remit all fees collected from the bus stage for the seven-year period (since 2018).
"The status quo order remains in force. I see no need of reissuing the same orders reiterating that a court of law never acts in vain and I direct that the orders issued must be respected," said the judge, noting that the county's appeal against the injunctive orders was dismissed.
A court has ordered Kiambu County to hand over to Posta the revenues collected from matatu operators at a disputed bus park.
Photo credit: Shutterstock
The court held that the county could not benefit from proceeds of a facility it was barred from operating.
The order requires the county to pay the PCK all monies arising from the operation of the bus stage and any other development erected by the devolved unit or their servants/officers on the suit property from 2018 to date.
The court rejected the county's defence that the State corporation's case was time-barred under the Limitation of Actions Act.
However, the court held that land ownership disputes allow a 12-year window, and the suit filed in 2017 was within this limit.
Section 4 of the Limitation of Actions Act, read with Section 7, prescribes a 12-year limitation period for actions to recover land.
This means a claim to ownership of land (including an action for recovery) must be initiated within 12 years of the right of action accruing. If the 12-year period has passed, the right to recover the land is extinguished, and an injunction to prevent trespass, which is essentially an indirect way of recovering land, may also be barred.
"In the instant case the action is about ownership and the suit was instituted in 2017 and therefore the action for injunction is anchored within the time-frame of 12 years," stated Justice Mogeni.
Another rejected defence was that the matter should be resolved through intergovernmental negotiations in line with Article 189(3) of the Constitution and Section 32 of the Intergovernmental Relations Act (2012).
In its defence, the county, through County Attorney Waithira Waiyaki, claimed negotiations for compensation had begun under former Governor Ferdinand Waititu.
Kiambu Bus Park on June 16, 2018. A court has ordered the county to surrender to Posta revenues collected from matatu operators at the bus park since 2018.
Photo credit: File | Nation
It presented a 2019 valuation report and alleged a March 2025 meeting with PCK’s leadership to resolve the matter amicably.
Among those that attended the meeting were the Postmaster-General, John Kipyegon Tanui, and the PCK chairperson, Dr Rose Nyamunga.
However, the court dismissed these assertions due to the absence of minutes or a binding agreement.
The court noted the county failed to provide evidence of PCK’s alleged instructions for valuation, with Justice Mogeni ruling that court orders cannot be ignored in favour of negotiations.
"The county attorney has not presented any letter from the first plaintiff (PCK) issuing the said directions. She instead chose to attach a valuation report, which she avers emanates from instructions from the first plaintiff," said the judge.
According to the twin court orders (of 2018 and 2025), Kiambu County must cease operations at the disputed bus stage and hand over all revenue collected since 2018 to the State Corporation.
Failure to comply could lead to fines or imprisonment for county officials. Meanwhile, the main suit on land ownership remains pending.
