Milimani Law Courts in Nairobi.
Taxpayers are set to lose Sh1 billion in form of compensation to a private company for a land parcel in Embakasi, Nairobi, amid State warnings that the property had already attracted a separate Sh1.6 billion payout to the National Police Service.
This follows the Environment and Land Court’s decision to dismiss the National Land Commission’s (NLC) appeal and uphold the compensation to Charlise Development Company Limited, raising fears of a fictitious claim and double payment for the same parcel.
“While the court is a guardian of public resources, it cannot be used as a refuge for an acquiring authority that failed to present its best case during the trial. No error apparent on the face of the record has been demonstrated,” said Justice Edward Wabwoto rejecting the appeal.
Justice Edward Wabwoto, judge of the Environment and Land Court.
At the centre of the dispute is a property registered as LR No 209/13761, a 7.5-hectare property compulsorily acquired by NLC in 2014 for the Standard Gauge Railway project. According to NLC records, the parcel was earlier earmarked for the construction of a police hospital before it was used for the railway project in 2014.
The dispute started after the State issued gazette notices in 2014 and 2016 announcing the acquisitions. Charlise Development moved to the Land Acquisition Tribunal in September 2024 seeking compensation as the registered owner.
In February 2025 the tribunal awarded Charlise Sh712.3 million as compensation, citing violation of property rights and failure to pay promptly and just compensation. It also awarded the firm Sh18.7 million in general damages.
With interest accruing from October 2014, the total exposure rose to more than Sh1 billion.
Alarmed by the decision, the NLC returned to the tribunal seeking a review, arguing that the claim was fraudulent and that crucial evidence had not been considered.
Through its lawyer, the commission said paying the award would amount to “a mockery of public policy and prudent financial management” and lead to unlawful loss of public funds. It argued that the claim was fictitious and that the land belonged to the National Police Service.
Double payment
It told the court that a separate compensation of Sh1.65 billion had already been approved for the police in 2017, creating the risk of paying twice for the same land and exposing taxpayers to massive losses.
The commission also sought to reopen the case, introduce new evidence and join the police, Kenya Railways Corporation and the attorney-general as interested parties.
However, the tribunal rejected the application in June 2025. The decision has been upheld by the court, faulting the commission for failing to present the evidence earlier.
In its judgment, the court ruled that the commission had failed to meet the strict legal threshold required to review a concluded judgment.
“The purported new evidence was either within the appellant’s knowledge or could have been obtained with reasonable diligence,” the court ruled.
It added that review proceedings cannot be used to “re-open concluded litigation or patch up a weak case after judgment.” “An applicant cannot rely on its own records as newly discovered evidence,” the court said.
The court also rejected the attempt to introduce new parties after the case had been finalised, stressing the principle of finality in litigation.
“Post-judgment joinder is exceptional and impermissible where it seeks to re-litigate resolved issues,” the court said.
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The ruling means the compensation awarded to the developer stands, despite unresolved questions over ownership and prior payments.
The NLC had also questioned the validity of the company’s title, arguing that it stemmed from a lapsed 1998 allotment letter issued and that the land had been reserved for public use, including a proposed police hospital.
Under the law such a letter is only an offer and becomes invalid if its terms are not fulfilled within the stipulated time. The NLC told the court that the allotment was never perfected into a lawful entitlement capable of overriding public ownership.
The commission further stated that the land was historically public land, originally registered under the Permanent Secretary to the Treasury and later allocated to the National Police Service for public use. According to its records, the parcel was earmarked for the construction of a police hospital, reinforcing its status as land reserved for a public purpose.
On that basis, the NLC maintained that the land never ceased to be public land, meaning it could not legally be converted into private property or attract compensation to a private entity. It argued that any subsequent dealings, including subdivision into parcels, were irregular.
The commission also pointed to its earlier due diligence exercise in 2016, which confirmed the NPS as the legitimate owner. This formed the basis for the Sh1.65 billion compensation approved and paid to the police in 2017 when the land was acquired for the Standard Gauge Railway.
In its filings, the NLC therefore framed Charlise’s claim as invalid and potentially fictitious, arguing that the company had no valid title capable of compensation and that paying it would amount to compensating a private party for land already compensated as public property.
But the court held that any challenge to ownership must be pursued through a separate legal process and not through a review application.
It acknowledged the concerns raised over public funds but insisted that legal procedures must be followed.
“The rule of law and the principle of finality in litigation are matters of high public interest,” the judge said dismissing NLC’s appeal.
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