Milimani Law Courts.
Witnesses have taken to the stand—some more than once—marking a fresh chapter in Nairobi’s longest-running courtroom land saga, now in its 58th year.
At the heart of the dispute is the battle over ownership of the prime 818-acre parcel claimed by Kiambu Dandora Farmers Company Limited (KDFCL), but there is a fresh twist: the company is now seeking government compensation for 676 acres carved from the property registered as Land Reference Number 11379/3.
Mr Abdilahi Muigai Muiruri, Executive Chairman Kiambu Dandora Farmers Company Limited during an interview at Nation Center Nairobi on September 8, 2023.
For nearly six decades, the contentious piece of land has been the subject of a protracted legal battle. The stakes have been raised following a staggering Sh52.8 billion compensation claim made by KDFCL, which argues that the government illegally acquired the 676 acres and that the company's original title remains intact.
The Environment and Land Court in Nairobi has admitted a valuation report filed by Dreamscape Valuers Limited as evidence in the compensation case.
Justice Anne Omollo allowed the report, marking a major development in the long-running case. Hearing was adjourned to December 8, 2025 when the report's author, Mr Stephen Matu of Dreamscape Valuers Ltd, will take to the stand to defend it under cross-examination.
The report, dated May 12, 2025, values the land at Sh45.9 billion, plus a 15 percent disturbance allowance of Sh6.8 billion, bringing the total claim to Sh52.86 billion.
The company argues that it has never been compensated for the land—part of a larger 818-acre parcel bought in 1967—and has never taken possession of it.
Kiambu Dandora Farmers Company Limited Secretary Mwangi Karanja.
Testifying in court, KDFCL Executive Chairman Abdulahi Muiruri Muigai, Executive Secretary Joseph Mwangi Karanja, landowner Mirriam Wahu, government surveyor Miriam Wanjiru Kigathi and private investigator Tom Nduku detailed how the land was allegedly taken without due process.
They said 676 acres were taken by the government for public use including the construction of Mama Lucy Kibaki Level Four Hospital and establishment of provincial administration offices near Umoja III estate. But the land, the company claims, was never used exclusively for public purposes and that portions were irregularly allocated to private entities.
According to Mr Mwangi, the enterprise bought the land from Khan Abass Khan in 1967. The government issued Gazette Notice No 840 on March 15, 1974, expressing its intention to acquire two parcels—Land Reference Numbers 11379/2 (141 acres) and 11379/3 (818 acres)—for "future urban development." But KDFCL says the land was later handed over to private entities.
Justice Omollo heard that the government institutions occupying the land do not hold valid title deeds. Mr Muigai urged the court to compel the government to compensate KDFCL for what he described as illegal possession and non-use of the land.
The government has reportedly failed to issue formal ownership documents even for public-use buildings. The case has attracted multiple interested parties, including Emco Billets & Steel Ltd, Nairobi Bottlers (Coca-Cola), Umoja III Estate Association and U-Haul Vehicle Ltd.
The Mama Lucy Kibaki Hospital. The land on which the hospital is built has been subject to a legal battle over ownership that spans 43 years. Dandora Housing Schemes Limited and Kiambu Dandora Farmers Company Limited are claiming ownership of the land. FILE PHOTO | JEFF ANGOTE | NATION MEDIA GROUP
The parties claim legal ownership of various parcels and argue that the government lawfully allocated the land to them under the now-repealed Land Acquisition Act of 1968, which allowed land to vest “absolutely” in the state upon possession.
Lawyers for the interested parties, including a government surveyor, argued that once the Commissioner of Lands took possession, he was obligated to compensate affected parties. Emco’s lawyer Morris Omuga, claimed that over Sh1.3 million had been deposited in court as compensation. However, the company’s representatives, including Mr Karanja, stated that they have never collected the compensation, asserting that they challenged the acquisition itself.
They termed the acquisition as unlawful, as the government distributed land to private individuals instead of using it for public utility, as originally intended.
KDFCL maintains that the land was never properly subdivided and that the original title remains valid. Mr Nduku, the private investigator, presented a report showing discrepancies between official survey records and actual land occupation, with some companies occupying land under questionable allocations.
Ms Kigathi, the government surveyor, testified that she had re-surveyed the land and confirmed the original boundaries were intact despite encroachment—further supporting the farmer’s claim.
Complicating the matter further is a long-standing ownership row between KDFCL and Dandora Housing Schemes Limited (DHSL). Both entities submitted compensation claims during the original acquisition inquiry in the 1970s. KDFCL sought Kenya Pounds 1,022,500 while DHSL claimed Sh16.36 million. The High Court eventually ruled in favour of KDFCL as the rightful owner of the 818 acres. The company argues that what they bought in 1967 at Sh350 per acre is now worth about Sh80 million per acre due to rapid urban development.
Justice Omollo noted that three other judges had previously made rulings on aspects of the dispute. Her court is now expected to issue a final determination on both the rightful ownership and the compensation claim.
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