Ex-city official ordered to refund Sh13 million in cemetery deal kickback

While ruling on a recovery suit filed by the Ethics and Anti-Corruption Commission in 2018, the court said the official, Mary Ngechi Ngethe, played a central role in a scheme that saw public funds siphoned through an irregular land purchase. 

She served as the director of legal affairs at the defunct Nairobi City Council and also the chairperson of the Technical Evaluation Committee that handled the cemetery land tender.

The land situated in Athi River, Machakos County, measured about 110 to 120 acres, and was intended for use as a public cemetery for Nairobi residents after the one in Lang'ata filled up.

The court heard that the city council paid Sh283 million for the land, yet it's true value was about Sh30 million, reflecting a price inflation of nearly 10 times.

It also found that in her role, Ms Ngethe received Sh13 million as a kickback from lawyers handling the transaction, money traced to the proceeds of the inflated land deal and deemed an unlawful benefit.

Evidence showed the land was not only overpriced but also unsuitable for burial due to poor soil conditions, raising serious questions about how the deal was approved.

“The process was marred by glaring inconsistencies, irregularities and breach of what was provided in the tender documents,” the court said in its judgment.

The court found that none of the bidders met the mandatory requirements, yet the tender was still awarded, in violation of procurement rules.

It also emerged that the company awarded the tender, Naen Rech Limited, did not own the land and therefore did not qualify to participate in the bidding process. The court found that the land was owned by Henry Musyoki Kilonzi, not the company that was awarded the tender.

Investigations further revealed that a purported valuation used to justify the inflated price was forged and did not originate from the Ministry of Lands. A letter allegedly from the Land Commissioner claimed that the land was valued at Sh325.1 million.

“The documents submitted in support of the bid and those used to evaluate the process were not genuine or were forged,” the court noted.

'Reckless or deliberate'

Despite these red flags, the transaction proceeded, and the land was transferred to the council, with the full purchase price released.

However, only Sh110 million reached the actual landowner, leaving a massive discrepancy of Sh173 million that investigators said was shared among individuals involved in the scheme.

The court concluded that the official was either "reckless or deliberate" in allowing the transaction to proceed, despite clear evidence that it was flawed.

“For her to go ahead and progress a transaction with such glaring and obvious flaws, she must have been motivated by factors other than public interest,” the court said.

The judge said: "In my view, she was either reckless or deliberate in ensuring that the deal went through as a result of which the public lost money and was left with land which was not useful to it. In the circumstances, I hold that she was part of the scheme and she must be held liable for the loss."

Central to the case was evidence that the official received Sh13 million through a law firm involved in the transaction, money the court determined was part of the proceeds of the fraudulent deal.

Ms Ngethe denied receiving the funds, but the court relied on documentary evidence and witness testimony showing she acknowledged receipt of the money.

“The acknowledgment of receipt of the money was enough proof of receipt of the sum. The defendant has not adduced evidence to demonstrate what this Sh13 million was for. She was at the center of this transaction and she obviously moved and guided the flawed process,” the judge ruled.

The court rejected her defence, including expert testimony challenging the authenticity of her signature, describing it as unconvincing and tailored for the case.

It further found that she failed to explain the source or purpose of the money, strengthening the conclusion that it was an unlawful benefit.

“She stood to gain from the transaction… the money was a reward for her role in the transaction,” the judge said.

The court held that the Sh13 million constituted unjust enrichment and must be returned to the public, as it originated from misappropriated public funds.

The official’s counterclaim alleging violations of her rights was dismissed after she failed to provide evidence to support it.

The ruling forms part of wider efforts to recover public funds lost in the cemetery land scandal, one of the most prominent corruption cases involving the defunct city council.

The case exposed systemic failures in procurement, including manipulation of tender processes, use of forged documents, and disregard for professional advice on land suitability.

The court emphasised that public officers must be held accountable for losses arising from corrupt or negligent conduct.

“A public officer who oversees embezzlement or misappropriation of public funds must be held liable,” it stated.

The court ordered the ex-official to repay the Sh13 million with interest and to cover the costs of the case.

Follow our WhatsApp channel for breaking news updates and more stories like this.

[email protected]