A decision by the Kenya Railways Corporation (KRC) to demolish multi-million shilling business premises along Geoffrey Kamau Road in Nakuru town at the height of the Covid-19 pandemic has come back to haunt the state agency.
The corporation has been ordered to pay a Nakuru businesswoman Monica Macharia Sh45 million in compensation for the illegal demolition of her property.
The demolitions were part of a massive land reclamation drive by Kenya Railways to pave way for the rehabilitation of the Nakuru-Kisumu metre gauge railway.
Structures demolished by the Kenya Railways Corporation along Geoffrey Kamau Way in Nakuru Town on October 11, 2020.
Photo credit: File | Nation
Between October 2020 and December 2021, KRC demolished shops, churches, houses and other structures along the Nakuru-Nairobi highway and in Nakuru town.
Many locals watched helplessly as buildings they had occupied for years were reduced to rubble. Most of the affected business owners later filed lawsuits seeking more than Sh500 million compensation.
KRC is currently facing at least four court cases in relation to the demolitions, which have left several traders facing massive losses.
Among the plaintiffs are Nakel Investments Limited and Falcon Service Station Limited, who claim to have lost over Sh100 million as a result of the demolitions.
In a major setback for the company, the Environment and Lands Court ruled that KRC must pay Ms Macharia Sh45 million out of the Sh132 million she was seeking.
Structures demolished by the Kenya Railways Corporation along Geoffrey Kamau Way in Nakuru Town on October 11, 2020.
Photo credit: File | Nation
Justice Lynette Omollo ruled that the government agency had trespassed on her land and acted without legal authority.
Ms Macharia filed the case on November 23, 2020 in her capacity as administrator of the estate of her late husband Peter Macharia Marianjugu.
Her husband challenged the company in court and won the case, which confirmed his ownership. She said she occupied the land until March 2020, when KRC officials visited the property, claiming it was part of railway land.
According to Macharia, she and her late husband had previously lived in Eldama Ravine in Baringo County for four decades. They surrendered their land to facilitate the expansion of Baringo High School by the state and were allocated the Nakuru land as compensation.
“KRC agents invaded the suit property and demolished the building on it without a court order. The demolition happened on a Sunday and l could not seek redress in court,” she stated in court papers.
In its defence filed on January 25, 2021, Kenya Railways denied any wrongdoing and cited provisions of the Kenya Railways Corporation Act Cap 39, which allows the agency to construct and maintain railway level crossings on public and private land.
The agency also referred to the East African Railways and Harbours Engineering Manual Volume 1 (1962), stating that the law mandates the maintenance of a “Visibility Diamond”—a safety area that stretches 300 feet in all four directions from a crossing.
Structures demolished by the Kenya Railways Corporation along Geoffrey Kamau Way in Nakuru Town on October 11, 2020.
Photo credit: File | Nation
However, the court noted that although KRC claimed that the subject property was within the “Visibility Diamond”, it did not provide any evidence to prove this.
“The defendant (KRC) has committed a grave injustice to the plaintiff, and there is no doubt in my mind that the plaintiff has made a case for compensation for the demolition of the suit property,” ruled the court.
The judge found that the conduct of the KRC, which is a government department, was completely unwarranted.
“It was not only oppressive and arbitrary but violated the plaintiff’s right to property. The demolition is akin to unconstitutional action by the servants of government,” read the judgment.
Ms Macharia said she inherited the property after her husband's death on October 31, 1998. The couple had owned the one-acre plot located along the Nakuru-Kisumu highway in Nakuru City since 1995.
She said that she operated a bag manufacturing factory on the land and rented out several other premises to traders.
She also revealed that in March 2020 she was summoned to the KRC offices to clarify ownership of the land, but no follow-up action was taken until the demolition in October 2020.
She sued the corporation for Sh132 million as compensation for the demolished factory and rental units.
Following the court ruling, KRC has entered into an agreement to pay the awarded amount in quarterly instalments of Sh10 million.
Kenya Railways Managing Director Philip Mainga confirmed the agreement, saying the first instalment will be paid by April 30, 2025.
According to the agreement filed in court, the final payment will be made by July 30, 2026.
Mr Justice Anthony Ombwayo directed the parastatal to ensure full compliance with the agreed payment schedule.
