Lands and Physical Planning Principal Secretary Nixon Korir.
Senior State officials, including a principal secretary and a Member of Parliament, have been sued for alleged embezzlement of Sh2.7 billion meant for the compensation of those evicted to pave the way for a standard gauge railway (SGR) terminus.
In a suit filed by Prof PLO Lumumba on behalf of 184 petitioners, the High Court has been urged to intervene and recover the money, which the petitioners say was misappropriated by the State officers.
Prof PLO Lumumba.
The claimants argue that the money should have been wired to Letangule & Co. Advocates, their law firm of choice. Instead, they claim the money was released to two law firms they did not know—Sankale & Co. Advocates and Johnson and Partners LLP.
“The members of the Dupoto/Dafur Settlement Welfare Scheme appointed the firm of Letangule & Co. Advocates to represent them in the transaction involving the compulsory acquisition of their land by the Kenya Railways Corporation,” the petition states.
PS becomes involved
A sworn affidavit states that Lands PS Nixon Korir became involved in 2023 when the petitioners were processing the title for the 93 acres they occupied. The PS allegedly offered to assist in acquiring the crucial document. It adds that the scheme’s secretary, John Kiyian Karu, held several meetings with Mr Korir but failed to update members.
Lands and Physical Planning Principal Secretary Nixon Korir.
They were later informed that 38 acres had to be surrendered to process the title, failing which they would face dire consequences—including being denied the title deed. They were also asked to open accounts with Kenya Commercial Bank, which they told the court they now believe was a ploy to withhold information and conceal the amount paid by Kenya Railways.
On October 31, 2023, the scheme’s officials allegedly “unprocedurally, unlawfully, and secretly" appointed Johnson and Partners LLP to replace Letangule & Co. Advocate. Mid-December 2023, the petitioners discovered that Kenya Railways had entered into an agreement and executed a transfer for 55 of the 93 acres through Johnson and Partners LLP without their consent. They later learned that Sh2.75 billion had been released for this transaction.
According to the affidavit, Mr Karu asked members to submit their bank account numbers, assuring them they would receive full compensation. However, only Sh3 million was paid to the affidavit’s author, Korinke Ole Gisa. He was then given the assurance by Mr Karu that the balance would be paid once they relocated and after December 27, 2023, which was the deadline given by Kenya Railways.
Despite the total compensation amounting to Sh2.75 billion, the petitioners claim they received less than Sh250 million. Individual payments ranged from Sh50,000 to Sh2 million, which they say were grossly insufficient.
Letangule & Co Advocates, having worked on the case for six years, was entitled to Sh80 million in legal fees but received only Sh2 million, the petition states. The rest was allegedly diverted by the trustees of the scheme.
Preliminary investigations by the petitioners—presented in court—revealed how the funds were disbursed.
Sankale & Co Advocates received Sh1.246 billion, while Johnson and Partners LLP received Sh1.5 billion on December 16, 2023. Two days later, these amounts were allegedly distributed to 11 beneficiaries, with the more than 300 members of the settlement scheme receiving only Sh250 million in total.
Among the named beneficiaries were Nick Ndenda & Associates (Sh112.25 million), Moniket & Co. Advocates (Sh155 million) . Others were Narok South MP Kitilai Ole Ntutu (Sh250 million), Kemosi Mogaka & Co. Advocates (Sh83.16 million), Wesley Kibet Mootei (Sh50 million), T.K Rutto & Co. Advocates (Sh100 million), Kipkenda & Co. Advocates (Sh50 million), Cheboi Ouma & Co. Advocates (Sh80 million), and Hashim and Lesaigor & Co. Advocates (Sh183 million). On December 19, 2023, Sankale & Co Advocates allegedly withdrew Sh181 million in cash.
On March 7, the plaintiffs wrote to the Directorate of Criminal Investigations, Ethics and Anti-Corruption Commission, and the Director of Public Prosecutions requesting investigations. They specifically accuse Mr Korir of appointing law firms unfamiliar to them and facilitating the embezzlement of more than Sh300 million. They also accuse him of signing a fake sale agreement and coercing the plaintiffs to withdraw their initial court case.
“He (Mr Korir) secretly appointed Johnson and Partners LLP Advocates, who were strangers to the plaintiffs, to receive the money paid for compensation to the plaintiffs, in place of Letangule & Co. Advocates who had always been on record for the plaintiffs,” the court document reads.
The petitioners further want Mr Ntutu investigated for allegedly receiving Sh250 million, despite not being a member of the scheme.
“He was heard, on several occasions, stating that he had direct instructions from the President of the Republic of Kenya to settle the matter, a claim which turned out to be a ploy to intimidate the plaintiffs,” the petitioners say.
Johnson Osoi of Johnson and Partners LLP is also accused of facilitating the embezzlement and paying Sh15 million to Seru Moinket.
“This amount was topped up by another Sh155million paid to Moinket & Co. Advocates by Sankale & Co. Advocates and allowed John Karu of the scheme to determine which members were to be paid and how much,” the affidavit reads.
The plaintiffs told the court that some members, expecting compensation, took loans amounting to Sh78 million, further compounding their financial woes. They withdrew their original case after a meeting in Karen involving key State officials, including Mr Korir, National Land Commission Chairperson Gershom Otachi and Mr Letangule.
They want their petition certified urgent and heard to prevent further disbursement of the Sh2.75 billion to unauthorised persons.
“Unless the orders sought are granted, Kenya Railways will continue to occupy the 55 acres before the plaintiffs are fully compensated, and the excised 38 acres will remain in the hands of an unknown entity,” the court was told.
