Two traders, who were among those who recently suffered losses worth millions of shillings after the Kenya Railways Corporation demolished their businesses along Geoffrey Kamau Way in Nakuru town, have sued the State firm seeking over Sh400 million in compensation.
The two, Nakel Investments Limited and Falcon Service Station Limited, got a reprieve on Friday after the Environment and Land Court issued orders temporarily barring Kenya Railways) from using the disputed prime piece of land pending the hearing and determination of a case they have filed.
Justice Dalmas Ohungo restrained the corporation and its agents from occupying, alienating, leasing, constructing or transferring the 2.7 acre piece of land along Geoffrey Kamau Way.
"A temporary injunction is hereby issued restraining the Kenya Railways, by themselves or their agents, from trespassing, alienating, constructing, leasing or transferring the parcels of land located within Nakuru town, pending hearing and determination of this application," read the ruling by Justice Ohungo.
The judge also directed parties in the matter to file and serve written submissions within 14 days before hearing starts.
The orders remain in force until January 20, 2021 when the matter will be mentioned in court.
The two companies, through Lawyer Ahmednasir Abdullahi, moved to court and sued Kenya Railways over the evictions, arguing that they were illegal.
Falcon is seeking a compensation of Sh312,094,000 as special damages to a motor vehicle yard, tyre centre and the petrol station while Nakel Investments Limited, wants Sh84,350,000 to cater for demolition of Mercy International Business, two car wash bays, premises, machines and shops.
The two companies are also seeking general damages, loss of rental income and profits and cost of the suit.
They further claim that after their evictions, Kenya Railways now wants to re-subdivide the land and lease it to other people.
Falcon had leased 1.7 acres of the land from Kenya Railways while Nakel Investments had leased one acre.
Meanwhile, according to Kenya Railways documents filed in court, the land in contention, which spans over 400 metres along Geoffrey Kamau Way, was leased to six investors for 25 years.
The companies claim they paid millions of shillings as security, goodwill and rent deposit fees.
However, Kenya Railways says the terms were that it may repossess the land after giving a notice of 90 days and that it gave the traders enough time to vacate.
But the companies argue that the lease was signed in 2018, paving way for them to put up business premises that were valued at more than Sh500 million.
They stated that although the property belonged to the corporation, the businesses had not encroached on the railway line and, therefore, the evictions and destruction of their property was illegal.
The demolitions targeted restaurants, shops, petrol stations, night clubs, matatu sacco offices, car wash yards and car bazaars.
Companies and individuals who had leased the land from Kenya Railways included Falcon Service Station, Nicholas Njau Kiarie, Casuarina Limited, Nakel Investment Limited, Flagon Limited and S K Towett.
The demolitions came as Kenya Railways kicked off a rehabilitation of the Nairobi-Nakuru-Kisumu meter gauge railway, a project being undertaken by engineers from the Kenya Defence Forces and the National Youth Service.
