Ministry of Lands headquarters at Ardhi House in Nairobi in mid March 2015.
A firm described by the National Land Commission (NLC) as a briefcase company was on the verge of receiving a Sh1 billion compensation from the government for a parcel of land in Embakasi, belonging to the National Police Service (NPS).
Carlisle Development Company Ltd had won a case for compensation after the land was compulsorily acquired by NLC for the construction of the standard gauge railway.
Incidentally, the NLC says NPS was paid a total of Sh1.65 billion in 2017 as compensation for the same land, as it acquired for the construction of the SGR.
The company obtained a judgment on February 7, directing NLC to pay Sh712.3 million plus interest and general damages of Sh18.7 million within 45 days.
The interest was to start running in 2014, meaning that NLC was required to pay in excess of Sh1 billion for the 18.7-acre parcel of land.
However, NLC moved back to the Land Acquisition Tribunal and obtained an order, suspending the judgment, pending a review of the decision.
“That it will be against the interest of the public and a mockery of the dictates of public policy and prudent financial management to expend such public funds to a fictitious and fraudulent claim by the complainant,” NLC said through lawyer Titus Koceyo.
The tribunal chairperson Dr Nabil Orina directed the case to be heard on March 27, for directions.
“There are sufficient reasons to review or vary the judgment since the company had no valid title to the property capable of being compensated through compulsory acquisition,” Mr Koceyo submitted.
He said the firm was a briefcase company and might not refund the money once paid if the stay is not granted.
Mr Koceyo said a quick search of the details, physical address, and the existence of the complainant company through known search engines like Google and public directories yielded no known physical address of the company.
He also sought to join the Kenya Railways Corporation and the National Police Service in the case.
Mr Koceyo said the police were registered owners of the property and were compensated when it was acquired for the construction of the SGR.
He maintained that the company had no valid title deed to the land since its title had earlier been revoked but the company went ahead and filed a fictitious claim before the tribunal.
The NLC said in a committee meeting held on October 7, 2015, the claim (by the firm) was deliberated and it was resolved that it was illegal as the land never ceased being a public land.
The land was originally known as LR No. 209/13417 measuring 28 acres and registered in the name of Permanent Secretary, Treasury before it was allocated to the NPS for public use.
According to Mr Koceyo, the land was initially set aside for the construction of the National Police Service hospital.
In 2017, the NLC approved a payment of Sh1.65 billion to the NPS for acquiring the property for the construction of the SGR.
But in disregard to the proprietary rights of NPS, the company proceeded and subdivided the land into two portions (13760 and 13761) and purported to claim ownership.
The lawyer said the information was not brought to the attention of the tribunal.
The allotment letter of August 27, 1998, which the company used to claim ownership ceased to exist after the company allegedly failed to pay standard premium within 30 days.
Further, NLC said the company attached a payment receipt dated December 19, 2014, some 16 years later, by the time the property was not available for any allotment.
“That therefore, the process used by the complainant to obtain its certificate of title was unlawful, irregular, and null and void ab initio leading to its cancellation by the respondent as being illegitimate,” he said.
The company told the tribunal that it acquired the parcel of land on August 27, 1998, and it accepted the allotment through a letter dated December 8, 2009.
Thereafter, following the preparation and official approval of survey Plan FR. No. 350/133, the property was duly assigned L.R. No. 209/13761, said the company.
It added that it remained the registered proprietor of the land to date. NLC later published a notice in October 2014, of intention to acquire the land for the SGR.
The firm sought compensation of Sh2.25 billion but it was granted Sh712 million plus interest and damages.
